Assessment Period:
- MRA's power to issue tax assessments limited to 2 years, except in exceptional circumstances.
Penalty and Interest Caps:
- Penalties and interest capped at 100% of the tax amount due.
Settlement Schemes:
- Tax Arrears Settlement Scheme (TASS): Full waiver of penalties and interest for tax arrears as of 30 June 2025, if paid by 31 March 2026.
- Tax Dispute Settlement Scheme (TDSS): Waiver of penalties and interest for cases under litigation, provided tax is paid by 31 March 2026.
- Voluntary Disclosure Settlement Scheme (VDSS): Waiver of penalties and interest for undeclared or under-declared income, available until 31 March 2026.
Tax Agent Registration:
- Tax agents must register with the MRA to act for clients, with registration valid for 5 years.
Foreign Currency Tax Payments:
- Companies earning over 50% of gross income in foreign currency must pay tax in that currency.
VAT Penalties:
- Interest on erroneous VAT refunds reduced to 0.25%.
- Serious VAT breaches can result in fines up to Rs1 million and imprisonment.
Fair Share Contribution:
- Companies liable for Fair Share Contribution must file quarterly statements and pay corresponding contributions.
VAT for Pleasure Craft Operators:
- Mandatory VAT registration for holders of Pleasure Craft Licences.
Deferred VAT Scheme:
- No upfront VAT payment required for capital goods valued at Rs500,000 or more.

These measures aim to streamline tax administration, enhance compliance, and introduce stricter penalties for violations.

Key Tax Administration Measures from the Finance Bill 2025