TAX PLANNING, ADVISORY & Reporting
Tax planning
A real financial plan is tax efficient. We build plans using comprehensive tax strategies
What is tax planning?
Tax planning is the process of ensuring that all aspects of your financial plan work together in such a way that they reduce your overall tax bill as much as is legally possible. Minimizing your taxes allows you to grow your investments faster.
Why is tax planning important?
Tax management plays a crucial role in every comprehensive financial plan and should be a consideration for every aspect within it.
Tax planning strategies can reduce your tax obligations, including on capital gains and investment withdrawals
Good tax management can lessen an estate’s tax liabilities, as well as ensure you keep more of your investment growth.
Strategies to minimize tax
Hold investments in registered accounts, such as TFSAs, RRSPs and RESPs
Income splitting can reduce taxes by moving income to a lower-earning spouse
Maximize permissible tax deductions and tax credits
Use the Home Buyers’ Plan to make a down payment on a new home
Charitable giving can help reduce your tax liabilities
Income Tax Qualifying Payments and Reliefs available for Individuals
According to the present tax regulations, certain types of payments qualify for deductions.
For the below qualifying payments, an individual can deduct whichever is the lowest out of either ⅓ of the taxable income for that year of assessment, or Rs. 75,000.
Donations to Approved Charity,
Donations to Government or other specified institutions,
Profits remitted to President’s Fund
Frequently asked questions
Minimizing the amount of tax you pay means you keep more of your income and investment growth. This will help you meet your goals faster: from paying off debt to saving for retirement or your kids’ education.
Yes you can reduce your tax payable considerably by taking advantage of all the tax credits avalable according to goverment rules and regulations and tax credits that you’re entitled to.
Tax deductions include:
- contributions for approved charity
- Deductible interest charges on loans used to earn income from a business or property
- Some moving expenses
- Expenses related to self-employment
- Child-care expenses
All individuals age over 18 years and organizations that liable pay tax if applicable and also able to get benefit from tax planning. Many tax credits and government assistance programs are calculated based on net income on tax returns.
Consulting tax strategies can help ensure you maximize these benefits and credits, so your taxable income is lower.
Normaly a tax year is any period of 12 consecutive months commencing on 1 April of one calendar year and ending on 31 March of the following calendar year.
In Sri Lanka an individual is required to file a return of income in a prescribed format (with financial statements and supporting schedules, if applicable) not later than eight months after the end of each year of assessment (on or before 30 November immediately following the end of the tax year)