Thursday, November 8, 2012

Sri Lanka promotes new stock listings, debentures with tax breaks

Nov 08, 2012 (LBO) - Companies that list on the Colombo Stock Exchange will be given a 3-year concessionary tax and listed bond interest will be freed from income tax among incentives given to capital markets President Mahinda Rajapaksa, said in a budget for 2013.

 A presidential task force will be appointed to co-ordinate and implement a capital market development plan.

 New listings will be taxed at half the rate for three years.

Listed debenture interest is now subject to a 10 percent withholding tax.

Stocks transactions will be freed from stamp duty.

Foreign employed persons and foreign resident Sri Lanka's will be allowed buy unit in mutual funds free of capital account controls.

Unit trust management firms (mutual fund managers) will be taxed at a lower 10 percent rate.

National Development Bank and DFCC Bank would be allowed to raise 250 million dollars in loans from abroad and the foreign exchange risk will be taken by the government, he said.

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