Regulatory Alerts2016-12-23
Revision of Value Added Tax on Application Fees for Entities Licensed or Registered by the Securities and Exchange Commission of Sri Lanka
The Securities and Exchange Commission of Sri Lanka has set a 15 percent Value Added Tax rate on application and registration fees for all licensed and regulated entities, effective 1 November 2016. The notice publishes a comprehensive fee schedule that specifies base charges, calculated VAT, stamp duties, and total payable amounts for categories including stock exchanges, brokers, investment managers, and clearing houses. All affected entities must comply with these revised financial obligations for licensing, annual renewals, and fund registrations.
SEC | SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ශ්රී ලංකා සුරැකුම්පත් සහ විනිමය කොමිෂන් සභාව இலங்கை பிணையங்கள் மற்றும் பரிவர்த்தனை ஆணைக்குழு
Ref: SEC/FAD/16/12/539
By Hand/ Registered Post/ Fax
12th December 2016
To: ALL ENTITIES LICENCED/ REGISTERED BY THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA
REVISION OF VALUE ADDED TAX ON APPLICATION FEES FOR ENTITIES LICENCED/ REGISTERED BY THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA
The Securities and Exchange Commission of Sri Lanka (SEC) writes to inform you that the Value Added Tax (VAT) rate applicable to entities licenced/registered by the SEC is 15% with effect from 01st November 2016 and the fee structure along with the applicable taxes is as follows.
| # | Category | Frequency | Fee | VAT at 15% | Stamp Duty | Total Payable |
|---|---|---|---|---|---|---|
| 1 | Stock Exchange | Every 5 years | 250,000.00 | 37,500.00 | 2,000.00 | 289,500.00 |
| 2 | Stock Broker | Annually | 40,000.00 | 6,000.00 | 2,000.00 | 48,000.00 |
| 3 | Stock Dealer | Annually | 40,000.00 | 6,000.00 | 2,000.00 | 48,000.00 |
| 4 | Stock Broker and Stock Dealer | Annually | 75,000.00 | 11,250.00 | 4,000.00 | 90,250.00 |
| 5 | Investment Manager | Annually | 15,000.00 | 2,250.00 | 1,500.00 | 18,750.00 |
| 6 | Margin Provider | Annually | 25,000.00 | 3,750.00 | 2,000.00 | 30,750.00 |
| 7 | Credit Rating Agency | Annually | 40,000.00 | 6,000.00 | 2,000.00 | 48,000.00 |
| 8 | Underwriter | Annually | 25,000.00 | 3,750.00 | 2,000.00 | 30,750.00 |
| 9 | Clearing House | Annually | 25,000.00 | 3,750.00 | 2,000.00 | 30,750.00 |
| 10 | Managing Companies of Unit Trusts | Per Fund Registration Only | 100,000.00 | 15,000.00 | 0.00 | 115,000.00 |
Yours faithfully
Vajira Wijegunawardane Director General /yds
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