Tax Due Diligence
Tax due diligence is crucial for mitigating risks, ensuring compliance, optimizing tax outcomes, and making informed strategic decisions in business transactions. It provides stakeholders with essential insights and transparency to navigate complex tax environments effectively.
At DPR, we offer comprehensive tax due diligence services in Sri Lanka across various business scenarios such as legal and regulatory compliance reviews, initial public offerings (IPOs), international transactions, business restructuring and reorganizations, investments & joint ventures and mergers and acquisitions(M&A).
Trust DPR for thorough tax due diligence that empowers your business with the knowledge and insights needed to make informed decisions and navigate tax complexities effectively.
Transfer Pricing Audits
In compliance with Transfer Pricing Regulations in Sri Lanka, it is essential for all taxpayers engaged in "international transactions" or "transactions other than international transactions" with associated enterprises to submit a Transfer Pricing Disclosure Form (TPDF) to the Department of Inland Revenue annually.
For enterprises involved in controlled transactions with associated enterprises, it is imperative to prepare and maintain comprehensive transfer pricing documentation, including the Local File, Master File, and Country-by-Country Report.
The Local File is necessary for enterprises with aggregate controlled transactions exceeding LKR 200 million annually, while the Master File is required for enterprises declaring group revenue exceeding 50 million Euros or its equivalent in Sri Lankan Rupees per year. Failure to comply with these requirements may result in penalties imposed by the Commissioner General of Inland Revenue.
DPR tax team specializes in transfer pricing advisory services in Sri Lanka. We take on the responsibility of ensuring updated and accurate transfer pricing documentation, providing peace of mind and compliance for your business.
Tax Compliances and Tax Audits
Tax compliance is not just about following the rules; it's about ensuring legal adherence, maintaining financial stability, safeguarding reputation, managing risks, accessing benefits, and upholding ethical responsibility. It forms the foundation of responsible financial management and good governance.
In Sri Lanka, tax compliance means adhering to the tax laws and regulations set by the government or the Department of Inland Revenue. It encompasses several critical areas that individuals and businesses must address to meet their tax obligations accurately.
At DPR, we are renowned tax consultants in Sri Lanka, taking on the responsibility of ensuring robust tax compliance for our clients. This includes accurately completing and submitting tax returns within deadlines, timely tax payments, meticulous record-keeping, optimizing tax deductions, credits, and incentives available under Sri Lankan tax laws to minimize liabilities, and adherence to all relevant tax regulations and reporting requirements in Sri Lanka's tax landscape.
