The Social Security Contribution Levy shall come into operation on the First day of October 2022.
Importers, Manufacturers,Service providers and Wholesalers and Retailers
Not later than 15 days from the date of operation of this Act, in the case of a taxable person whose aggregate of the turnover, within the 12 months period immediately prior to the date of operation of this Act, exceeded 120Mn rupees;
Not later than 15 days from the date on which the aggregate of the turnover for a quarter exceeds or is likely to exceed 30Mn rupees, in the case of a taxable person
2.5% on liable turnover
| Person | Liable Turnover |
|---|---|
| Importers | 100% of the Turnover |
| Manufacturers | 85% of the Turnover |
| Service providers | |
| Supply of Financial services | 100% of the Value addition attributable to financial services |
| Land and improvements | 100% of the turnover |
| Other Services | 100% of the turnover |
| Wholesalers and Retailers | |
| Sale of any article by a registered distributor in relation to any manufacturer or producer of any goods in Sri Lanka; | 25% of the turnover |
| Wholesale or retail sale other than distributor /manufacturer including importation and sale | 50% of the turnover |
Every registered person shall account for levy on an accrual basis
Pay the levy payable by such person on or before the 20th day of the immediately succeeding month of the relevant month of that quarter to the Commissioner-General, in such manner as may be specified by him.
Ex : SSCL for the month of October 2022 should be paid on or before 20th November 2022.
Every registered person shall furnish to the Commissioner-General a return either in writing or by electronic means for every quarter on or before the 20th of the month after the end of each relevant quarter. Every such return shall be in the form specified by the Commissioner-General.
Ex: SSCL Return for the Quarter ended 31st December 2022 is due on 20th January 2022
Where the amount of default is not paid before the last day of the succeeding month, 10% of the amount in default; and a further sum equivalent to 2% for each period ending on last day of succeeding month / part of such period during which it is in default.The total amount payable as penalty shall not exceed 100% of the levy in default
Failure to apply for registration within the due period - Penalty of a sum not exceeding Rs. 25,000
Penalty of a sum not exceeding LKR 50,000
Any article which is imported, is proved to the satisfaction of the Commissioner- General, that such article is imported to Sri Lanka for:
Any article imported, if proved to the satisfaction of the Director-General of Customs, that such article was, prior to its importation, taken out of Sri Lanka for repairs.
Any spare part imported by any airline or shipping company, if proved to the satisfaction of the Commissioner-General, that such spare part is to be used for the maintenance of any aircraft or ship used in international traffic and owned or chartered by such airline or shipping company.
Any article imported if such article is subject to the Special Commodity Levy charged under the Special Commodity Levy Act, No. 48 of 2007.
Fertilizer.
Petroleum and petroleum products other than lubricants classified under Harmonized Commodity Description and Coding Numbers for Customs purposes.
L.P. Gas.
Pharmaceuticals identified under Harmonized Commodity Description and Coding Numbers for Customs purposes.
Tea supplied by the manufacturer registered with the Sri Lanka Tea Board to any registered broker for sale at the Colombo Tea Auctions.
Any article for use in a project approved by the relevant Minister and the Minister of Finance, considering economic benefit, where the tax is borne by the Government.
Bitumen classified under HS Code No. 2714.
Raw materials or packing materials imported for manufacturing pharmaceuticals, subject to approval of the relevant authority.
Plant, machinery or equipment imported temporarily for large-scale infrastructure development projects approved by the Minister of Finance, with re-export condition after project completion.
Foreign currency notes imported, classified under HS Codes 4907.00.90.
Raw materials or packing materials imported for manufacturing ayurvedic preparations listed in the Ayurveda Pharmacopoeia, subject to approval of the relevant authority.
Pure-bred breeding animals (HS 0102.10 or HS 0104.20.10), milking machines (HS 8434.10), dairy machinery (HS 8434.20), and spare parts (HS 8434.90) at the point of importation.
Bitumen classified under HS Code No. 2714.
Solar panel modules, accessories, or solar home systems for generating solar power energy classified under relevant Customs codes.
Coal.
Articles manufactured by a company recognized as a Strategic Development Project and sold to another such project, a specialized approved project, or a BOI-registered company, considered as import replacement during the project implementation period.
Machinery or equipment imported or purchased locally for generating electricity by the Ceylon Electricity Board or contracted institutions, classified under relevant Customs codes and approved by the Minister of Finance.
Any article exported by the manufacturer.
Any article not being a plant, machinery, or fixture imported by any person exclusively for use in, or for, the manufacture of any article for export.
Any article sold by a taxable person to any exporter, if the Commissioner-General is satisfied, based on documentary evidence, that such article or any article manufactured using it has in fact been exported from Sri Lanka by such exporter directly or through a trading house established for export purposes.
Fertilizer.
Petroleum and petroleum products other than lubricants classified under Harmonized Commodity Description and Coding Numbers for Customs purposes.
L.P. Gas.
Pharmaceuticals identified under Harmonized Commodity Description and Coding Numbers for Customs purposes.
Tea supplied by the manufacturer registered with the Sri Lanka Tea Board to any registered broker for sale at the Colombo Tea Auctions.
Any article for use in a project approved by the relevant Minister and the Minister of Finance, considering economic benefit, where the tax is borne by the Government.
Raw materials or packing materials imported for manufacturing pharmaceuticals, subject to approval of the relevant authority.
Plant, machinery, or equipment imported temporarily for large-scale infrastructure development projects approved by the Minister of Finance, with re-export condition after project completion.
Any article sold to the United Nations Organization, any of its specialized agencies, a diplomatic mission of any foreign government, a member of the diplomatic staff of such mission, or any other person approved by the Minister on the recommendation of the Minister of Foreign Affairs as having diplomatic status.
Generation of electricity and supply of electricity other than the supply of electricity by Ceylon Electricity Board established under the Ceylon Electricity Board Act, No. 17 of 1969.
Medical services.
Supply of water.
Transportation of goods and passengers.
Services provided to any exporter of any article, being services directly related to improving the quality and character of such article.
Services of sewing garments provided to any exporter of such garments.
Services of a freight forwarder and a shipping agent licensed under the Licensing of Shipping Agents, Freight Forwarders, Non Vessel Operating Common Carriers, and Container Operators Act, No. 10 of 1972 or courier services in so far as such services are in respect of the exporter of any article from Sri Lanka.
Services provided by a public corporation, in so far as such services are in respect of the exportation of any article from Sri Lanka.
Services of an auctioneer, broker, insurance agent or commission agent of any local product to the extent of the brokerage receivable by such auctioneer or broker, or commission receivable by such insurance agent or commission agent, as the case may be.
Services of–
(a) a travel agent in respect of inbound tours operated; or
(b) a hotel, guest house, restaurant or other similar
businesses, where the payment for such services is received in foreign
currency through a bank and such agent, hotel, guest house, restaurant
or other similar business is registered with the Sri Lanka Tourism
Development Authority.
Client support services provided over the internet, telephone or by an enterprise, exclusively for the provision of such services, to one or more identified clients outside Sri Lanka, for payment in foreign currency.
The business of life insurance.
Distribution, production and supply of any cinematographic films primarily for exhibition in cinemas.
Exhibiting films in a cinema.
Any service provided to the United Nations Organization or to any specialized agency of such organization or to the diplomatic mission of any foreign Government or to any member of the diplomatic staff of such mission or to any other person approved by the Minister on the recommendation of the Minister of Foreign Affairs as being of the status of a diplomatic mission.
Any service rendered in or outside Sri Lanka to any person or partnership outside Sri Lanka for the utilization out of Sri Lanka for payment in foreign currency, if such foreign currency is remitted to Sri Lanka through a bank.
Services provided to any specific project carried on, out of foreign funds or donations received by the Government, as approved by the Minister considering the economic benefit to the country.
Any service provided by the Central Bank of Sri Lanka established under the Monetary Law Act (Chapter 422).
Any service provided free of charge by any public corporation out of the funds voted by Parliament from the Consolidated Fund or out of any loan arranged through the Government, on behalf of the Government.
Services provided by any Government Department, Ministry or any Local Authority.
Services provided by foreign consultancies for the large-scale infrastructure development projects being projects which have been approved by the Minister of Finance, as beneficial for the economic development of Sri Lanka.
Services provided in relation to ship building for the international market for payments made in foreign currency.
Any service provided by the Employee’s Trust Fund, Provident Fund, Pension Fund, Pension Trust Fund and Gratuity Fund.