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As enacted
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Part I · Imposition of Social Security Contribution Levy

3. Imposition of the Social Security Contribution Levy

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

A levy known as the “Social Security Contribution

Levy” (in this Act referred to as “the levy”) shall, subject to the provisions of this Act, be charged from every taxable person for every quarter (in this Act referred to as the “relevant quarter”) on or after October, 1, 2022 in respect of the liable turnover, specified in the Second Schedule hereto, at the rate of 2.5 per centum, in the following manner:-

(a)

In case of a taxable person referred to in paragraph (a) of section 2, the levy shall be charged in respect of the liable turnover of such person arising from the importation of such article; and

(b)

In case of a taxable person referred to in paragraph (b), (c) or (d) of section 2, the levy shall be charged in respect of the liable turnover of such person.

(2)

For the purposes of this Act, “turnover”-

(a)

with reference to a taxable person referred to in paragraph (a) of section 2, arising from the importation from any article means, the value of that article ascertained for the purpose of the Value

Added Tax under section 6 of the Value Added Tax

Act, No. 14 of 2002, but does not include the value of any exempted article referred to in Part IA of the

First Schedule;

(b)

with reference to any taxable person referred to in paragraph (b) of section 2, and to any relevant quarter means, the sum receivable whether received or not, in that quarter, of any article manufactured and sold in Sri Lanka by such person other than any exempted article referred to in Part IA of the

First Schedule;

(c)

with reference to any taxable person referred to in paragraph (c) of section 2 and to any relevant quarter means –

(i)

the sum receivable whether received or not, from the supply in Sri Lanka of any financial services by any person carrying on the business of supplying any financial services in Sri Lanka but does not include the exempted services referred to in Part II of the First Schedule;

(ii)

the value of any service arising from the business of real estate and improvement ascertained under subsection (7) of section 5

of the Value Added Tax Act, No. 14 of 2002

for the purpose of the said Act but does not include the exempted services referred to in

Part II of the First Schedule; and

(iii)

the sum receivable, whether received or not, from the provision of any service in Sri Lanka other than the services referred to in subparagraphs (i) and (ii) and any exempted service referred to in Part II of the First

Schedule; and

(d)

with reference to any taxable person referred to in paragraph (d) of section 2 and to any relevant quarter means the sum receivable, whether received or not, from the wholesale or retail sale of any article in Sri Lanka other than any exempted article referred to in Part IB of the First Schedule.

(3)

The turnover specified in subsection (2) for the relevant quarter of any taxable person shall not include –

(a)

any bad debt incurred by such person in that quarter:

Provided however, any bad debt recovered in any relevant quarter, shall be included in the turnover of that relevant quarter; or

(b)

any Value Added Tax under the Value Added Tax

Act, No. 14 of 2002 paid for that relevant quarter; or

(c)

any rebate paid under the Export Development

Rebate in relation to any international event as approved by the Minister.

Part II

Registration Under the Act

Read on from Part II

Part III

Returns and Information

Read on from Part III

Part IV

Assessment of Levy

Read on from Part IV

Part V

Payment and Collection of the Levy

Read on from Part V

Part VI

Appeals

Read on from Part VI

Part VII

Recovery of Levy

Read on from Part VII

Part VIII

Liability of Certain Persons to Pay Levy

Read on from Part VIII

Part IX

Offences and Penalties

Read on from Part IX

Part X

Miscellaneous

Read on from Part X

Part XI

Adminstration Provisions

Read on from Part XI

Part XII

General

Read on from Part XII

Schedules