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Tax Chart
Tax Chart
Year of Assessment 2019/2020
Tax Rates for Resident and Non-Resident Individuals
For the 1st Period - (Period from 01.04.2019 to 31.12.2019)
List of available Reliefs
- Personal Relief for residents/non-resident citizens of Sri Lanka is Rs. 375,000/- (not available for gains from the realization of investment asset).
- Additional Relief (maximum) of Rs.525, 000 is available on employment income (maximum tax rate applicable for employment income is 24%).
- Rent Relief- 25% of the total rental income for the year of assessment.
- Senior Citizen Interest Relief – Rs. 1,500,000/-up to the total of the individuals interest income from financial institutions derived and deemed as derived for the period up to December 31, 2019.
- Foreign Services Relief - Rs. 15,000,000/- up to the total of such income for the period up to December 31, 2019.
|
|
Taxable Income |
Rate |
| On the First Rs. 450,000/- |
4% |
| On the Next Rs. 450,000/- |
8% |
| On the Next Rs. 450,000/- |
12% |
| On the Next Rs. 450,000/- |
16% |
| On the Next Rs. 450,000/- |
20% |
| On Balance |
24% |
- Gains from realization of investment assets shall be taxed at the rate of 10%.
- Income from a business consisting of betting and gaming, liquor or tobacco tobacco (other than business of buy and sale of liquor or tobacco) shall be taxed at the rate of 40%.
|
Tax on Terminal Benefits from Employment
| Terminal Benefits |
Rate |
|
Application of Concessionary Rates |
| where the period of contribution or the period of employment is
20 years or less |
| Not exceeding Rs. 2,000,000/- |
0% of the amount in excess of Rs.0 |
| Exceeding Rs. 2,000,000/- but not exceeding Rs. 3,000,000/- |
5% of the amount in excess of Rs. 2,000,000/- |
| Exceeding Rs. 3,000,000/- |
Rs. 50,000/- plus 10% of the amount in excess of Rs. 3,000,000/- |
| where the period of contribution or the period of employment is
more than 20 years |
| Not exceeding Rs. 5,000,000/- |
0% of the amount in excess of Rs.0 |
| Exceeding Rs. 5,000,000/- but not exceeding Rs. 6,000,000/- |
5% of the amount in excess of Rs. 5,000,000/- |
| Exceeding Rs. 6,000,000/- |
Rs. 50,000/- plus 10% of the amount in excess of Rs. 6,000,000/- |
|
Application of Normal Rates |
| With respect to compensation for loss of office which has not been approved by the CGIR, payment from provident fund (which is not a regulated fund or not an approved fund by the CGIR), other payments or any retirement non-cash benefit (normal rates - subject to maximum rate) |
Normal rates of 4%, 8%, 12%, 16% 20%, 24% |
For the 2nd Period - (Period from 01.01.2020 to 31.03.2020)
List of available Reliefs
- Personal relief for residents/non-resident citizens of Sri Lanka is Rs. 750,000/-
- Expenditure relief for residents of Sri Lanka maximum Rs. 300,000/-
|
Taxable Income
(Except gains from the realization of investment asset) |
Rate |
| On the First Rs. 750,000/- |
6% |
| On the Next Rs. 750,000/- |
12% |
| On Balance |
18% |
- Gains from realization of investment assets shall be taxed at the rate of 10%.
- Business consisting of betting and gaming, manufacture and sale or import and sale of any liquor or tobacco product shall be taxed at the rate of 40%.
|
Tax on Terminal Benefits from Employment
|
Application of Concessionary Rates |
Total terminal benefits from employment
(Commuted pension, retiring gratuity, ETF or Approved compensation which is uniformly applicable to all employments). |
Rate |
| On the First Rs. 10,000,000/- |
0% |
| On the Next Rs.10,000,000/- |
6% |
| On the Balance |
12% |
|
Application of Normal Rates |
| With respect to compensation for loss of office which has not been approved by the CGIR, payment from provident fund (which is not a regulated fund or not an approved fund by the CGIR), other payments or any retirement non-cash benefit |
Standard rates of 6%,12%, on each Rs. 3,000,000 and 18% on the balance |
Tax Rates for Companies
For the 1st Period - (Period from 01.04.2019 to 31.12.2019)
|
Description |
Rate |
|
Standard Rate |
| Taxable income of a company (Other than companies taxed at special rates) |
28% |
|
Special Rates |
| Small and Medium Enterprises |
14% |
| Company predominantly conducting business of exporting goods & services |
14% |
| Company predominantly conducting an agricultural business |
14% |
| Company predominantly providing educational services |
14% |
| Company predominantly engaged in an undertaking for the promotion of tourism |
14% |
| Company predominantly providing information technology services |
14% |
| Income from a business consisting of betting and gaming, liquor and tobacco |
40% |
| Gains from the realization of investment asset |
10% |
| Remittance tax on non-resident companies |
14% |
| Relocating International headquarters in Sri Lanka |
0% (for 3 years) |
For the 2nd Period - (Period from 01.01.2020 to 31.03.2020)
|
Description |
Rate |
|
Standard Rate |
| Taxable income of a company (Other than companies taxed at special rates) |
24% |
|
Special Rates |
| Gains & profits from the business of Small and Medium enterprises (excluding the business of betting and gaming or from sale of liquor other than those gains and profits are merely incidental to another business) |
14% |
| Gains & Profits from a business of sale of goods or merchandise where the payment for such sale is received in foreign currency and remitted through a bank to Sri Lanka |
14% |
| Gains & profits Specified undertaking (as defined in section 195) |
14% |
| Gains & Profits from Educational Services |
14% |
| Gains & Profits of an undertaking for the promotion of Tourism |
14% |
| Gains & Profits from providing Construction Services |
14% |
| Gains & Profits from Agro processing |
14% |
| Gains & Profits from providing Health Care Services |
14% |
| Gains & Profits from Dividends received from a resident Company |
14% |
| Gains from the realization of investment Assets |
10% |
Gains & Profits from Manufacturing
(subject to the tax rate for SMEs, exports, Specified undertakings) |
18% |
| Gains and profits from conducting betting and gaming |
40% |
| Gains and profits from manufacture and sale or import and sale of any liquor or tobacco products |
40% |
| Remittance tax on non-resident companies |
14% |
| Relocating International headquarters in Sri Lanka |
0% (for 3 years) from Y/A 2018/2019 |
| The portion of the gains and profits of any insurer engaged in the business of life insurance [under section67(2)] |
14% (for 3 Y/A from Y/A 2018/2019) |
Tax Rate for Partnerships
For the 1st Period - (Period from 01.04.2019 to 31.12.2019)
|
Description |
Rate |
| Gains from realization of Investment Asset |
10% |
For the 2nd Period - (Period from 01.01.2020 to 31.03.2020)
|
Description |
Rate |
| Partnership is allowable to deduct any qualifying payments made during the year of assessment in computing its taxable income and income tax payable on taxable income |
| Gains from realization of Investment Asset |
10% |
| Balance taxable income is not exceeding Rs. 1,000,000 |
0% |
| If balance taxable income is exceeding Rs. 1,000,000/-, on the excess of Rs. 1,000,000/- |
6% |
Tax Rates for Trusts
For the 1st Period - (Period from 01.04.2019 to 31.12.2019)
|
Description |
Rate |
Taxable income of a trust
(Other than gain on realization of investment asset) |
24% |
| Gains from realization of Investment Asset |
10% |
For the 2nd Period - (Period from 01.01.2020 to 31.03.2020)
|
Description |
Rate |
Taxable income of a trust
(Other than gains from the realization of investment assets) |
18% |
| Gains from realization of Investment Asset |
10% |
Tax Rates for Unit Trusts or Mutual Funds
For the 1st Period - (Period from 01.04.2019 to 31.12.2019)
|
Description |
Rate |
Taxable income of unit trusts or mutual funds
(Other than gain on realization of investment asset) |
28% |
| Gains from realization of Investment Asset |
10% |
For the 2nd Period - (Period from 01.01.2020 to 31.03.2020)
|
Description |
Rate |
Taxable income of unit trusts or mutual funds
(Other than the gains from the realization of investment assets) |
24% |
| Gains from realization of Investment Asset |
10% |
Tax Rates for Non-Governmental Organization
For the 1st Period - (Period from 01.04.2019 to 31.12.2019)
|
Description |
Rate |
Taxable income of a non-governmental organization
(Other than gain on realization of investment asset) |
28% |
| Gains from realization of Investment Asset |
10% |
| NGO Tax on the grant, donation or contribution or in any other manner on 3% of such receipts |
28% |
For the 2nd Period - (Period from 01.01.2020 to 31.03.2020)
|
Description |
Rate |
Taxable income of a non-governmental organization
(Other than gain on realization of investment asset) |
24% |
| Gains from realization of Investment Asset |
10% |
| NGO Tax on the grant, donation or contribution or in any other manner on 3% of such receipts |
24% |
Tax Rates for Charitable Tnstitutions
|
Description |
Rate |
Taxable income of charitable institutions
(Other than gain on realization of investment asset) |
14% |
| Gains from realization of Investment Asset |
10% |
Tax Rates for Employees Trust Funds, Provident or Pension funds and Termination Funds
|
Description |
Rate |
| Taxable income of Employees Trust Funds, Provident or Pension funds and Termination Funds |
14% |
Withholding Taxes
For the 1st Period - (Period from 01.04.2019 to 31.12.2019)
| WHT Rates applicable on the Income received as Investment Return |
| Description |
Rate |
| Interest or discount paid to a person |
5% |
| Interest paid to a senior citizen (Subject to relief) |
5% |
| Rent paid to a resident person |
10% |
| In all other cases (royalty, natural resource payment, dividend, reward etc.) |
14% |
|
WHT Rates applicable on the Service Fees and Contract Payment |
| Description |
Rate |
| Service fees referred to in section 85(1)(a) (on amounts exceeding Rs.50,000) |
5% |
| Service fees referred to in section 85(1)(b) |
14% |
| On the insurance premiums referred to in section 85 (1)(b) |
14% |
| On the each partner’s share of any Partnership Income |
8% |
| From the sale price of any gem sold at an auction conducted by the National Gem and Jewellery Authority |
2.5% |
For the 2nd Period - (Period from 01.01.2020 to 31.03.2020)
| WHT Rates |
| Description |
Rate |
| From the Sale price of any gem sold at an auction conducted by the National Gem & Jewellery Authority. |
2.5%
(Final) |
| On the amounts paid as winning from lottery, reward, betting or gambling |
14% |
|
On following payments made to Non- Resident Persons Deduction of WHT is applicable by any person on any payment or allocation which has a source in Sri Lanka, subject to the provisions of relevant DTAA |
| On Dividend |
No applicable |
Interest (Excluding exempt interest) or discount
- Non–resident Non-citizen
- Non-resident Citizens
(If the aggregate interest income from a bank/ financial institution exceeds Rs. 250, 000/- per month or Rs. 3,000,000/- per annum (to a non-resident but citizen) |
5% - Final
5% - Final |
| Payment made to Non- residents as a charge, natural resource payment, rent, royalty, premium, service fee or an insurance premium, subject to the provisions of relevant DTAA |
14% |
| Payment made to a non-resident person with respect to land, sea, air transport or telecommunication service, subject to the provisions of relevant DTAA |
2% |
Advanced Personal Income Tax (APIT)
For the 2nd Period - (Period from 01.01.2020 to 31.03.2020)
| The employers are required to remit the APIT by deducting (or as per any alternative arrangement) from the remuneration of respective employees, if such employees are resident in terms of the provisions of the Inland Revenue Act, No. 24 of 2017, with the consent of respective employees. If such employees are non-residents, regardless of their consent, due tax must be deducted as per the tables provided in the guideline. |
| Tax rate on the income of non-resident individual is applicable in progressive rate subject to maximum of 18% as applicable to resident individuals |
Guideline could be downloaded from the Web Portal of IRD |
Advanced Income Tax (AIT)
For the 2nd Period - (Period from 01.01.2020 to 31.03.2020)
| AIT is deductible on any interest or similar payments made to any resident person subject to the consent given by such person. If the consent is not granted, in no case AIT could be deducted. |
Economic Service Charge
| Description |
Rate |
| Tax to be charged on liable turnover (Charged on turnover and applicable if quarterly turnover exceeds 12.5 Mn) |
0.5% |
| {Turnover of petrol, diesel & kerosene)* 1/10} + {Actual turnover of other lubricants + Any other goods or services (if any)} |
0.5% |
| Turnover under Gazette Notification No 2036/23 of 2017 |
0.5% |
ESC has been abolished with effect from January 01, 2020 |
Value Added Tax
Up to 30.11.2019
| Description |
Rate |
| Standard Rate |
15% |
| VAT on Financial Services (On the Value Addition on Financial Services) |
15% |
| On wholesale and retail business with turnover not less than Rs. 12.5 Mn per quarter |
15% |
| Direct export of goods & supply of certain services referred to in section 7 of the VAT Act (Zero rated supplies) |
0% |
With effect from 01.12.2019
| Description |
Rate |
| If total value of supplies exceeds or likely to exceeds Rs. 75Mn per quarter or 300Mn per annum w.e.f. 01.01.2020. (However, any person who carries out a taxable activity can register for VAT irrespective of registration threshold) |
| Standard Rate |
8% |
| Direct export of goods & supply of certain services referred to in section 7 of the VAT Act (Zero rated supplies) |
0% |
| Supply of services by a hotel, guest house, restaurant or other similar businesses providing similar services, registered with the Sri Lanka Tourism Development Authority, if not less than sixty per centum (60%) of the total value of the inputs are sourced from local supplies/sources |
0% |
| Import of goods (fabrics) set out in the H.S. Code and description specified in Column I and II of Schedule of the Extraordinary Gazette Notification No. 2095/20 dated November 1, 2018 |
0% |
| Import and /or supply of goods or supply of services, other than supply of services / import of goods as referred to under above paragraphs |
0% |
| VAT on Financial Services (On the Value Addition on Financial Services) |
15% |
Nation Building Tax
| Tax is chargeable if turnover for a quarter is Rs. 3 Mn or more |
| On the supply of locally procured agricultural produce if turnover is Rs. 25 Mn or more |
| Description |
Rate |
| On liable turnover of Manufacturer and Service provider |
2% on liable turnover |
|
Wholesale or Retail Sale |
| On 25% of liable turnover of any distributor |
2% |
| On 50% of the liable turnover from Wholesale or Retail Sale(Other than any turnover of a distributor) |
2% |
| Supply of Banking and Financial Services |
2% of the Value Addition on Financial Services |
- Any person/partnership who/which engages in the business of processing of any locally procured agricultural produce in the preparation for sale and his/its liable turnover exceeds twenty-five million (Rs. 25 Mn,) or,
- Any other person whose liable turnover exceeds three million (Rs. 3 Mn),
for the quarter ended with December 31, 2019 is liable for NBT on the liable turnover of the period from October 01, 2019 to November 30, 2019. |
| NBT has been abolished with effect from December 01, 2019 |
Stamp Duty
| Specified Instrument |
Stamp Duty |
| Any Affidavit (from 13/5/2013) |
Rs. 50/- |
| Any Policy of General Insurance |
Rs. 1/- for Rs.1,000/- or part thereof |
| Any Warrant to act as Notary Public |
Rs. 2,000/- |
| Any foreign liquor license issued in respect of any calendar year |
Rs. 20,000/- |
| Any foreign liquor license issued from time to time for extending the period of the liquor shop conducted in any place for less than a calendar year |
Rs.20,000/- |
| Any arrack license out of the arrack licenses AFL 1, AFL 2, AFL 3 and AFL 4 or which are issued together with any Foreign Liquor (FL) license |
Rs. 2,000/- per license or 10% of License fee which is higher |
| Any license issued for the sale of bottled toddy |
Rs. 2,000/- per license or 10% of License fee whicheveris higher |
| Any license issued authorizing the holder to carry on any trade, business, profession or vocation, other than any trade or business for the sale of liquor, for any period (as specified in such license) |
Rs. 2,000/- per license or 10% of License fee whicheveris lower |
| Any claim, demand or request presented for the payment of any sum of money, due in respect of credit card transaction where the merchant country (the country in which the purchase of goods or services or the withdrawals of money taken place) thereof is a country other than Sri Lanka. |
Rs. 25/- for every Rs. 1,000/- or part of thereof such sum of money |
| Any Bond or Mortgage for any definite and certain sum of money and affecting any property |
Rs. 1/- per each Rs. 1,000 of the Mortgage Value or a part thereof |
| Any Lease agreement or hire agreement of any property |
Rs. 10/- per each Rs. 1,000/- of the Lease or Rental Value or part thereof |
| Any Promissory Note |
Rs. 1/- per each Rs. 1,000 of its value or a part thereof |
| Any receipt or discharge given for any money or other property |
Up to Rs. 25,000/- Exempt and Over Rs. 25,000/-, Rs.25/- |
| Any Receipt / Voucher on Gross Remuneration which include Salary, Allowances, Arrears, Overtime payment, Bonus etc. |
Up to Rs. 25,000/- Exempt and Over Rs. 25,000/-, Rs.25/- |
| Any Receipt / Voucher on other payment |
Up to Rs. 25,000/- Exempt and Over Rs. 25,000/-, Rs.25/- |
| Any Other Discharge |
Up to Rs. 25,000/- Exempt and Over Rs. 25,000/-, Rs.25/- |
Share Transaction Levy
| Description |
Rate |
| On the turnover (of the buyer and the seller) |
0.3% |
Betting and Gaming Levy
| Description |
Rate |
| Betting business done through Agents |
Rs. 4,000,000/- |
| If live telecast facilities are issued |
Rs. 600,000/- |
| If live telecast facilities are not used |
Rs. 50,000/- |
|
Business of Gaming |
| Business of Gaming (casino including Rudjino) per place of business |
Rs.200, 000,000/- |
|
Casino Entrance Levy |
| Who carries on the business of gaming in Sri Lanka shall collect from any person who enters the place of business of gaming |
U$ 100 or equivalent |
|
Business of Bookmaker & Gaming |
| Tax on the gross collection on the business of book marker or Business of gaming (after deducting winning prize) if the gross collection exceeds one million rupees per one month |
10% |
Debt Repayment Levy
| Description |
Rate |
| On the value addition attributable to the supply of financial services from every Financial Institution (All the licensed Commercial or Specialized Banks and licensed Finance Companies) |
7% of the Value Addition on Financial Services |
|
DRL has been abolished with effect from January 01, 2020. |
|
