In terms of Section 114 of the Inland Revenue Act No. 10 of 2006 or Section 83 of the Inland Revenue Act No.24 of 2017 (from 1st April, 2018) , Employers are required to deduct Income Tax on Employment Income of employees at the time of payment of remuneration.
For this purpose the Commissioner General of Inland Revenue specifies Tax Tables which are to be used in making such tax deductions. Since the Tax is paid at the time of earning the remuneration, This System is called Pay-As-You-Earn System (PAYE)
Every employer has obligation to deduct PAYE Tax from the Employee as per PAYE tax tables and the total deducted amount should remit to the department on or before 15th of the following month.
Due date : Return of PAYE Tax (PAYE) for a relevant Assessment Year, should be furnished on or before 30th day of the month of April, of the following Assessment Year.
Submit to : Central Document Management Unit (CDMU), 1st Floor of Inland Revenue building
Department of Inland Revenue, Sri Lanka,
Chittampalam A. Gardiner Mawatha, Colombo 02.
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