Find Accountancy, Audit and Tax expertise in Sri Lanka
- Overview
- Profession
- Tax
Overview
There are numerous accounting firms operating in Sri Lanka, including the ‘Big Four’ and other members of international accounting firms. Naturally, such firms are mainly found in large urban centres. Companies must file their financial statements annually in accordance with the 2007 Companies Act. The Institute of Chartered Accountants announced that by 2011 the accounting standards they issue would be fully compliant with International Financial Reporting Standards (IFRS). In terms of strength of auditing and reporting standards the World Economic Forum Global Competitiveness Report (2012-2013) ranks Sri Lanka 46th out of 144 countries, two places below India, with a score of 5.0 above the world mean of 4.6. In terms of resolving insolvency Sri Lanka comes in 42nd place out of 183 countries worldwide (World Bank Ease of Doing Business Index 2011).
Profession
The Institute of Chartered Accountants Sri Lanka is the national professional body for accountants in the county. The Institute is recognised as the sole authority with regard to accounting and auditing standards in the country. Under the Companies Act of 2007, application of these standards is mandatory. The Institute is a member of the International Federation of Accountants (IFAC), the South Asian Federation of Accountants (SAFA) and the Confederation of Asian and Pacific Accountants (CAPA). Access to the Association of Certified Chartered Accountants (ACCA) is available as there is an examination centre in the country. In 2012 the Institute of Chartered Accountants Sri Lanka recognised over 4, 300 chartered accountant members and 36, 000 students in their education programmes. The Chartered Accountants Sri Lanka Business School runs courses in various aspects of business, accounting and business management.
Tax
Personal income tax is progressive, from 5% to 35%. Corporate tax is up to 35% with flat rates for different kinds of entities. For example charitable institutions (including corporate bodies) are taxed at 10% and quoted companies listed less than 5 years at 33.3%. There is no capital gains tax in Sri Lanka. Tax incentives include tax holidays and exemptions as well as concessionary rates. The World Economic Forum Global Competitiveness Report (2012-2013) ranks Sri Lanka 139 out of 141 countries with regard to total tax rate. The World Bank Ease of Doing Business Index puts the country in 173rd position out of 183 nations worldwide in terms of paying taxes (2011).
| Accountancy, Audit and Tax organisations in Sri Lanka | |
|---|---|
| The Institute of Chartered Accountants Sri Lanka |
|
