Salient features of Social Security Contribution Levy

This article is prepared based on the Bill issued on  Social Security Contribution Levy on 17.06.2022 (Publishing date : 23.06.2022)

Effective Date :The Social Security Contribution Levy shall come into operation on the First day of July 2022.

Persons to whom this Act applies : Importers, Manufacturers,Service providers and Wholesalers and Retailers

Registration Requirement : 

  • Not later than 15 days from the date of operation of this Act, in the case of a taxable person whose aggregate of the turnover, within the 12 months period immediately prior to the date of operation of this Act, exceeded 120Mn rupees;
  • Not later than 15 days from the date on which the aggregate of the turnover for a quarter exceeds or is likely to exceed 30Mn rupees, in the case of a taxable person 

Rate :2.5% on liable turnover 

Liable Turnover :

Person Liable Turnover 
Importers100% of the Turnover
Manufacturers 85% of the Turnover
Service providers 
  •    Supply of Financial services
100% of the Value addition attributable to financial services
  •     Land and improvements
100% of the turnover
  •     Other Services
100% of the turnover
Wholesalers and Retailers 
  •  Sale of any article by a registered distributor in relation to any manufacturer or producer of any goods in Sri Lanka;
25% of the turnover
  • Wholesale or retail sale other than distributor /manufacturer including importation and sale
50% of the turnover

Accounting basis : Every registered person shall account for levy on an accrual basis

Payment :  Pay the levy payable by such person on or before the 20th day of the immediately succeeding month of the relevant month of that quarter to the Commissioner-General, in such manner as may be specified by him.

Ex : SSCL for the month of July 2022 should be paid on or before 20th August 2022.

Return to be furnished :Every registered person shall furnish to the Commissioner-General a return either in writing or by electronic means for every quarter on or before the 20th of the month after the end of each relevant quarter. Every such return shall be in the form specified by the Commissioner-General.

Ex : SSCL Return for the Quarter ended 30th September 2022 is due on 20th October 2022

 

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