Personal Tax

·                      All personal reliefs consolidated into a single exemption.

·                      Gradual tax rate reduction to a flat rate of 15% in 3 years.

·                       New National Residential Property Tax introduced.

·                       Increase in car benefit from Rs12,000 to Rs48,000 / Rs60,000.

·                       PAYE on a cumulative basis.

·                       Interest, royalties and rental income taxed at source.

·                      CPS returns on a quarterly basis.

Corporate Tax

·                      A gradual reduction to a flat rate of 15% for all sectors over next 3 years.

·                      Annual allowances on a reducing balance basis.

·                      Annual allowance of 5% on non industrial buildings.

·                       Investment allowance of 25% removed.

·                      Current tax losses carried forward for maximum of 5 years.

·                      AMT rate increased from 5% to 7.5%.

Value Added Tax

·                       No change in the VAT rate or tax base.

·                       Registration threshold reduced to Rs2million.

 

·                      Threshold for monthly returns reduced from Rs12million to Rs10million.

Registration Duty

·                       Reduction of duty on transfer of immovable property from 10% to 5%.

Customs Duty

·                      Top rate reduced to 30%.

·                       Duty removed on 275 items used in industry and small businesses.

·                       Existing 4 categories of vehicles reduced to 2:

! 1600 c.c. or less – 55%

! Over 1600 c.c. – 100%

Excise Duty

·                      Taxation of spirits proportionate to absolute alcohol content.

·                      Categorisation of alcoholic products rationalised.

Solidarity Levy

·                      Temporary levy of 0.85% of turnover of profitable hotels and destination management companies for 4 years.

 

 

Source: Kemp Chatteris Deloitte

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