Banks have started notifying customers that the Withholding Tax (WHT) on interest earned from deposits will increase to 10% with effect from April 1, 2025.
The change is being implemented under the Inland Revenue (Amendment) Act, No. 02 of 2025, which was passed earlier.Â
The current WHT rate of 5% will be doubled as part of the new tax measures introduced by the government.
The revised rate will apply to interest income from savings and fixed deposits, affecting both individuals and institutions.
The Government has said that depositors earning less than Rs. 150,000 per month as overall income can obtain WHT exemptions through the Department of Inland Revenue. (Islandnews)
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