This module will not be further enhanced. Support is limited to defect fixing only.

Introduction to Withholding Tax

This module provides the functionality to calculate the withholding tax (WHT) based on single or joint account, age of customer and type of account or deposit.

Click here to understand the terms and abbreviations used in this module.

In Sri Lanka, the Withholding Tax (WHT) is a regulatory requirement by the Department of Inland Revenue (IRD-Regulator) to recover tax in the event of paying out the interest for an account. As per the present withholding tax regulations, the following interest income are liable for WHT:

• All individual and corporate accounts.
• All residents and non-residents account holders.
• All local and foreign currency saving, fixed deposits, and certificate of deposits (CD’s).

A flat 5% tax is applied on the interest income of above.

The benefits for this functionality are:

• Ability to charge WHT based on the age of the customer and client segment.
• Ability to calculate the tax for all joint holders of an arrangement.

Temenos Transact will split the tax for customers. The tax will be calculated for customers for whom the tax percentage is configured in the arrangement and the tax will be applied based on the tax liability percentage configured for each joint holder in the arrangement.