No tax on NRFC accounts

A rumour has been spread that the Department of Inland Revenue is taking action to recover taxes from interest on NRFC or RFC accounts, interest on moneys in an account opened in a Foreign Currencies Banking Unit (FCBU) and Interest on moneys (in rupees) obtained by the conversion of foreign currencies held outside Sri Lanka and lying into credit in a "special account" opened in a commercial bank.

The Commissioner General of Inland Revenue A.A. Wijepala in a statement said this is a rumour and a baseless assumption.

He further stated the Department will not collect taxes on above accounts (including withholding taxes).

These accounts are exempt from income tax, he said.