The highest ever income tax proportion to the tax revenue was recorded at 35% in 2007. www.incometaxsrilanka.com Sri Lanka New Income Tax Act -2017 The Inland Revenue Bill published by Gaze. Last updated: The liability to income tax therefore extends to his global income. 2,000,000 16% Rs. When the treaty rate is higher than the statutory rate, then the statutory rate is applicable. for any type of vocational services provided as an independent service provider. resident in Sri Lanka for a year of assessment or who is a The standard tax rate is 28%. Entry into Force: 21 May 1980. non- resident in Sri Lanka for a year of assessment, Concessionary tax rates apply to sums paid to an employee on cessation of employment when the scheme is uniformly applicable to all employees by way of compensation, commuted pension, retirement gratuity, and contributions to the Employees Trust Fund. Tax Calculator: If you are a contractor and want a calculation on your tax and net retention in Sri Lanka, we can supply it to you free of charge. Filing of tax and tax payment – The annual tax return must be furnished before 30 September of the following year of assessment. In the case of a person who is resident in Sri Lanka is chargeable with Income Tax in respect of profits and income wherever arising. Sri Lanka, it is necessary therefore to examine how adequately and effectively the fiscal and tax system has performed these functions and how effective the policy and administrative measures have been in solving the problems that have arisen. By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement. 2,000,000 to Rs. 1,500,000 to Rs. This page provides - Sri Lanka Corporate Tax Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. If your only source of income is from employment in Sri Lanka, your income will be taxed at source and you won’t have to file a tax return. An individual shall be deemed a resident in Sri Lanka for a year of assessment, if s/he is: • A resident in Sri Lanka; • Present in Sri Lanka for a period or multiple periods aggregating to 183 days or … The rate of income tax on profits from employment for a specified period of a non citizen employed in Sri Lanka 38. Please turn on JavaScript and try again. Furnishing Income Tax (IT) Returns Due Date for Furnish Returns : On or before 30 th day of the month of November, of the next succeeding year of assessment. Speaker. You may be trying to access this site from a secured browser on the server. Sri Lanka Residents Income Tax Tables in 2019: Income Tax Rates and Thresholds (Annual) Tax Rate. The rate of income tax on royalty payable to any company partnership or other body of persons outside Sri Lanka 37. When earning an income in Sri Lanka, you must register for a TIN. © 2017, All rights reserved by Inland Revenue Department - Sri Lanka. Tax rates of 14% and 40% also apply to profits from specific businesses. © 2017 - 2021 PwC. but is a citizen of Sri Lanka, will receive an aggregate relief of Rs 500,000 for that year of assessment. The Inland Revenue Act provides the legal authority to charge and recovery of Income Tax on the profits and income of every person or partnership for the year of assessment. Income tax is charged on the basis of the provisions under the Inland Revenue Act, No. This widens the slabs and reduces income liable for tax at the higher rates significantly. The following outlines the framework for personal income tax in Sri Lanka. All rights reserved. 3,000,000 and … as a commission or brokerage to a resident insurance, sales, or canvasing agent     Withholding tax (WHT) rates on or after1 April 2020 WHT on the following has been abolished. Tax rates for year of assessment 2018/19 are as follows:(Valid till 31 December 2019) * Sri Lankan rupees The relevant Inland Revenue Metropolitan/Regional Office in the Area nearby. The Inland Revenue Act provides the legal authority to charge, levy and collect income tax on the gains and profits of every person, which arose or is arising to such person for every year of assessment commencing after 1st of April, 2018. 500,000 to Rs. 1.3 Rates of Depreciation Allowances. Non-resident individuals are taxed only on their Sri Lanka-source income. The Tax is equivalent to; •(a) (Taxable Income x Rate/s*) –tax credits, if any PLUS •(b) Final withholding payment x Rate/s* *Tax rates as given in First Schedule to the Act. A person’s income from other sources for a year of assessment is the person’s gains and profits from any source of any kind, however does not include profits of a casual and non-recurring nature. The new Act is effective from April 1, 2018. Under APIT, employers can deduct APIT, from employees who are both residing in Sri Lanka and Sri Lankan citizens, provided that their consent is … (a) in Sri Lanka: (hereinafter referred to as "Sri Lanka tax"); -- the income tax, including the income tax based on the turnover of enterprises licensed by the Greater Colombo Economic Commission (b) in Pakistan: (hereinafter referred to as "Pakistan tax"). However the income tax contribution, started to decline from that point. Please see www.pwc.com/structure for further details. Income from Rs0.00. In respect of a person who is deemed to be resident in Sri Lanka is chargeable with income tax in respect of his income from Sri Lanka and income derived by him from outside Sri Lanka. A person's income from a business for a year of assessment is the person's gains and profits from conducting the business for the year. Central Document Management Unit (CDMU), 2. It looks like your browser does not have JavaScript enabled. on 19 June 2017 along with amendments made at the Committee stage was passed by Parliament on 7 September 2017 and will become an Act of Parliament once it receives the certification of the Hon. Non-resident individuals are taxed only on their Sri Lanka-source income. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. 500,000 4% Rs. Prescribed service fees include the payments make to resident individuals being: for teaching, lecturing, examining, invigilating, or supervising an examination. Please enable scripts and reload this page. The personal income tax rate stands at 15 %. Accumulated employers' contribution to an approved or regulated provident fund, when withdrawn, is exempt from tax. Visit our. 17-04-2019, Construction Industry Guarantee Fund Levy (CIGFL), On or before the date that is after six months end, of that year of assessment, Calculation of an individual's gains and profits from employment for a year of assessment. A person who files a tax return electronically (via e-Service) for the Year of Assessment 2018/2019 shall continue to file tax returns in that manner Sri Lanka - United Kingdom Income Tax Treaty Status: In Force Conclusion Date: 21 June 1979. Tax Residence According to IRA 24 of 2017, both resident and non-resident individuals are liable to pay taxes in Sri Lanka. 1,000,000 8% Rs. Income Tax Sri Lanka We, Income Tax Consultants, are being considered as one window for any type of Direct or Indirect tax matters. A person who is deemed to be non-resident in Sri Lanka is chargeable with income tax in respect of only the gains and profits, arising or derived from Sri Lanka.​​. Please contact for general WWTS inquiries and website support. 1,000,000 to Rs. Effective Date: 1 April 1977 (Sri Lanka); 1 April/6 April 1977 (United Kingdom) (see Article 25). Click and know the answers to the frequently asked questions and better understand the change in the regulation.