- 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.