Gift Permit

[Kulunu]

Hi Guys,

I have seen details on http://www.imexport.gov.lk/downloads.php?S...&&Did=5 site information about impoart a vehicle under gift permit.

Have any one import a vehicle under above scheme?Is this cheap & worthy?

My uncle is living in Japan. If this is cheap i can have a good vehicle at a low cost.

I'm looking for a corolla 121 or Bluebird.

Edited February 6, 2008 by Kulunu

[The Don]

Hi Guys,

I have seen details on http://www.imexport.gov.lk/downloads.php?S...&&Did=5 site information about impoart a vehicle under gift permit.

Have any one import a vehicle under above scheme?Is this cheap & worthy?

My uncle is living in Japan. If this is cheap i can have a good vehicle at a low cost.

I'm looking for a corolla 121 or Bluebird.

Hi Kulunu,

Yes, you should be able to get a vehicle on a gift permit for less than you might get the same vehicle unregistered in the open market, though you need to be careful with your choices.

The reason for this is it allows you to import a vehicle up to 5 years old which means the price you pay to obtain the vehicle will be less due to further depreciation (the maximum age normally permitted is 3 years) and you would pay less import duty for the same reason (further 2 years depreciation).

Please note however you would be required to pay an extra Gift Tax and this is on top of import duties and VAT

The Don

[vigorcomp]

Hi Kulunu,

Yes, you should be able to get a vehicle on a gift permit for less than you might get the same vehicle unregistered in the open market, though you need to be careful with your choices.

The reason for this is it allows you to import a vehicle up to 5 years old which means the price you pay to obtain the vehicle will be less due to further depreciation (the maximum age normally permitted is 3 years) and you would pay less import duty for the same reason (further 2 years depreciation).

Please note however you would be required to pay an extra Gift Tax and this is on top of import duties and VAT

The Don

Any examples ? Looking for a rough idea.....

[Kulunu]

I think now vehicle aged limit has extended to 10 years.

Any examples ? Looking for a rough idea.....

[The Don]

There was an excellent article posted by a forum member who had bought a Toyota Yaris on a gift permit, but I could not locate the exact thread using the search feature, perhaps your searching skills would be better than mine,

This thread has some information which might be of interest to you

http://forum.autolanka.com/index.php?s...;hl=blue+permit

[Kim]

what do you want to know specifically?

[vigorcomp]

what do you want to know specifically?

For instance if I bring down a L200 4wd which is 5 years old how much will I end up paying when I clear it? I mean is it worth bringing one down under the gift scheme>

Thanks guys...

[The Don]

For instance if I bring down a L200 4wd which is 5 years old how much will I end up paying when I clear it? I mean is it worth bringing one down under the gift scheme>

Thanks guys...

Vigorcomp, to answer that question you need the following,

CIF value of the vehicle

Agents value of the vehicle

Cost of Freight

Cost of Clearing

The current value of the vehicle for taxation purposes is derived from the agents valuation minus the depreciation. For a 5 year vehicle this would be approx 60% of the original agents valuation of the vehicle (This is the brand new value of the vehicle before tax).

Then duty and VAT is calculated. The formulas could be found on www.customs.lk

The Gift tax is also paid on the vehicle value less depreciation

[vigorcomp]

Vigorcomp, to answer that question you need the following,

CIF value of the vehicle

Agents value of the vehicle

Cost of Freight

Cost of Clearing

The current value of the vehicle for taxation purposes is derived from the agents valuation minus the depreciation. For a 5 year vehicle this would be approx 60% of the original agents valuation of the vehicle (This is the brand new value of the vehicle before tax).

Then duty and VAT is calculated. The formulas could be found on www.customs.lk

The Gift tax is also paid on the vehicle value less depreciation

Thanks guys.. I appreciate the help...

[Kulunu]

Can some one explain this tax system.

This was from my swift which was impoart last year.

Do they calculate tax directly according to a rate from cif value or from a tax base?

Vigorcomp, to answer that question you need the following,

CIF value of the vehicle

Agents value of the vehicle

Cost of Freight

Cost of Clearing

The current value of the vehicle for taxation purposes is derived from the agents valuation minus the depreciation. For a 5 year vehicle this would be approx 60% of the original agents valuation of the vehicle (This is the brand new value of the vehicle before tax).

Then duty and VAT is calculated. The formulas could be found on www.customs.lk

The Gift tax is also paid on the vehicle value less depreciation

[The Don]

Can some one explain this tax system.

This was from my swift which was impoart last year.

Do they calculate tax directly according to a rate from cif value or from a tax base?

Not all of the acronyms made sense to me, and obviously different taxes are calculated from different bases,

SRL I think is social responsibility levy

You might have noticed the declared value of your car with freight and insurance is not the base used to calculate tax, its a value that is supplied by the agent in Sri Lanka being how much the car would have been worth when it was brand new. I will check this further and get back to you

[Kulunu]

Thanks mate.I was very confused about this.

Not all of the acronyms made sense to me, and obviously different taxes are calculated from different bases,

SRL I think is social responsibility levy

You might have noticed the declared value of your car with freight and insurance is not the base used to calculate tax, its a value that is supplied by the agent in Sri Lanka being how much the car would have been worth when it was brand new. I will check this further and get back to you