Home :: Useful Information ::
Tax Chart
Tax Chart
Year of Assessment 2023/2024
Tax Rates for Resident and Non-Resident Individuals
List of available Reliefs
- Personal Relief for residents/non-resident citizens of Sri Lanka is Rs. 1,200,000/- (not available for gains from the realization of investment asset).
- For individual – Rent Relief- 25% of the total rental income for the year of assessment. (depend on the total rent income of the respective period)
- For a resident individual – who has acquired solar panel to fix on his premises and connected to the national grid, Rs. 600,000/- for each year of assessment, up to the total expenditure on such solar panels or up to the amounts paid to a bank in respect of any loan obtained to acquire such solar panel.
|
|
Taxable Income |
Rate |
| First Rs. 500,000/- |
6% |
| Next Rs. 500,000/- |
12% |
| Next Rs. 500,000/- |
18% |
| Next Rs. 500,000/- |
24% |
| Next Rs. 500,000/- |
30% |
| On the Balance |
36% |
| Gains from realization of investment assets |
10% |
| Income from a business consisting of betting and gaming, manufacture and sale or import and sale of any liquor or tobacco product |
40% |
Tax on Terminal Benefits from Employment
Types of income from employment
- Amount received in commutation of a pension;
- Amount received as a retiring gratuity;
- Amount received as compensation for loss of office or employment under a scheme which the Commissioner General considers to be uniformly applicable to all individuals employed by the employer
- Amount paid to a person at or after the time of retirement from employment from the Employees’ Trust Fund Act, No. 46 of 1980..
|
|
Total of above income from employment |
Rate |
| First Rs. 10,000,000/- |
0% |
| Next Rs. 10,000,000/- |
6% |
| On the balance |
12% |
Application of Normal rates on Terminal Benefits from Employment
|
| 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) |
6%, 12%, 18%, 24%, 30% on each Rs. 500,000/- & 36% on the balance |
Tax Rates for Companies
|
Description |
Rate |
|
Standard Rate |
| Taxable income of a company (Other than companies taxed at special rates) |
30% |
|
Special Rates |
| 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% |
| Gains from the realization of Investment Assets |
30% |
Remittance Tax
|
Description |
Rate |
| Remittance tax on non-resident person |
14% |
| Remittance tax on non-resident person on if a non-resident person retained the total income earned in any year of assessment commencing on or after April 1, 2021 n Sri Lanka for a minimum period of three years commencing from the first day of the immediately succeeding year of assessment in which the income is earned and invested the same in Sri Lanka to expand its business or to acquire shares or securities from the Colombo Stock Exchange licensed by the Securities and Exchange Commission of Sri Lanka or to acquire any treasury bill, treasury bond or Sri Lanka International Sovereign Bond issued on behalf of the Government of Sri Lanka |
0%
(on remittances of retained income invested) |
Tax Rate for Partnerships
|
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 |
| 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% |
| Gains from realization of Investment Asset |
10% |
Tax Rates for Trusts
|
Description |
Rate |
Taxable income of a trust
|
30% |
| Gains from realization of Investment Asset |
10% |
Tax Rates for Unit Trusts or Mutual Funds
|
Description |
Rate |
| Taxable income of unit trusts or mutual funds |
30% |
| Gains from realization of Investment Asset |
10% |
Tax Rates for Non-Governmental Organization
|
Description |
Rate |
| Taxable income of a Non-Governmental Organization |
30% |
| Gains from realization of Investment Asset |
10% |
| On the three percent of the amount received in a year of assessment by way of grant, donation or contribution or in any other manner |
30% |
Tax rates for Charitable Tnstitutions
|
Description |
Rate |
| Taxable income of charitable institutions |
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 Tax (WHT)/ Advanced Income Tax (AIT)
With effect from 01.01.2023
| Provisions of Double Tax Avoidance Agreement (DTAA) between Sri Lanka and other country are applicable in respect of WHT on payments to non-resident person |
| Description |
Rate |
| Payment to a non-resident person with respect to land, sea, air transport or telecommunication service, in terms of section 85(2) of IR Act. And Gazette Notification Extraordinary No. 2064/51 dated April 01, 2018. |
2% |
| From the Sale price of any gem sold at an auction conducted by the National Gem & Jewellery Authority. |
2.5% |
Service fee payments to a resident individual who is not an employee of the payer (if aggregate payment exceeds Rs. 100,000 per calendar month)
- For teaching , lecturing, invigilating or supervising an examination;
- As a commission or brokerage to a resident insurance, sales or canvassing agent
- For services provided by such individual in the capacity of independent service provider such as doctor, engineer, accountant, layer, software developer, researcher, academic or any individual service provider as may be prescribed by regulations
|
5%
on full payment |
| Interest or discount paid |
5% |
| Rent payments to a resident person (if aggregate payment exceeds Rs. 100,000 per calendar month) |
10%
on full payment |
| Amount pays as wining from a lottery, reward, betting or gambling |
14% |
| Charge, natural resource payment (defined in section 195 of the IR Act.) or premium |
14% |
| Royalty (defined in section 195 of IR Act.) |
14% |
| Rent payment to a non-resident person |
14% |
| Service fee or an insurance premium payments to a non-resident person |
14% |
| Dividend |
15% |
Advanced Personal Income Tax (APIT)
| The Employers are required to remit the APIT by deducting (or as per any alternative arrangement) from the remuneration of respective employees. Due tax must be deducted as per the APIT tables provided in the
IRD web portal. |
Value Added Tax
| If total value of supplies exceeds or likely to exceeds for a taxable period one month or three month Rs. 20 Million. or more or in the twelve months period Rs. 80 million or at any time, there are reasonable grounds to believe that the total value of supply will be exceed the above with effect from 01.10.2022 shall be registered for VAT (However, any person who carries out a taxable activity can register for VAT irrespective of registration threshold) |
| Description |
Rate |
| Standard Rate |
From 01.12.2019 to 31.05.2022 |
8% |
| From 01.06.2022 to 31.08.2022 |
12% |
| From 01.09.2022 to 31.12.2023 |
15% |
| From 01.01.2024 |
18% |
| 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 |
From 01.12.2019 to 31.05.2022 |
8% |
| From 01.06.2022 to 31.08.2022 |
12% |
| From 01.09.2022 to 31.12.2023 |
15% |
| From 01.01.2024 |
18% |
| 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% |
| VAT on Financial Services (On the Value Addition on Financial Services) |
Upto 31.12.2021 |
15% |
| With effect from 01.01.2022 |
18% |
Social Security Contribution Levy (SSCL)
Persons whose aggregate turnover
- exceeded Rs. 120,000,000/- within twelve months immediately prior to 01.10.2022, excluding the turnover from exempted articles or services;
- exceeds or likely to exceeds Rs. 30,000,000/- for any quarter commencing on or after 01.10.2022 excluding the turnover from exempted articles or services;
Shall register for SSCL. SSCL is applicable on the liable turnover. |
| Liable Turnover |
| |
Rate |
| Importation of any article |
100% of the turnover |
2.5% |
| Manufacture of any article |
85% of the turnover |
| Providing a service |
| Supply of Financial Service |
100% of the value addition attributable to financial services referred to in the Gazette Notification issued under section 25C of the VAT Act. |
| Land and improvements |
100% of the liable turnover {value of improvement ( Sale value – Market Value of the bare Land to the to the date of sale) referred to in subsection (7) of section 5 of the Value Added Tax Act, No. 14 of 2002} |
| Service other than above |
100% of the turnover referred to in section 3(2)(c)(iii) of the Act |
| Wholesale and retail sale |
| Sale of any article by a registered distributor in relation to any |
25% of the turnover referred to in section 3(2)(d) of the Act |
| Wholesale or retail sale other than above including importation and sale |
50% of the turnover referred to in section 3(2)(d) of the Act |
Stamp Duty
| Specified Instrument |
Stamp Duty |
| Any Affidavit (Gazette Notification- Extraordinary 1809/19 (2013.05.10) w.e.f. 2013.05.13 |
Rs. 50/- |
| Any Policy of insurance for every Rs.1,000 or part thereof of the aggregate of the premia payable on the policy [Gazette Notification- Extraordinary 1789/9 (2012.12.17)] w.e.f 2013.01.01 |
Rs. 1/- |
| A Warrant to act as a notary public [Gazette Notification- Extraordinary 1789/9 (2012.12.17)] w.e.f 2013.01.01 |
Rs. 2,000/- |
| 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)[Gazette Notification- Extraordinary 2104/5 (2018.12.31)]w.e.f. 01.01.2019 |
Rs.2,000 or 10% of license fee whichever is lower |
| Any license issued authorizing the holder to carry on any trade or business for sale of liquor for any period (as specified in such license) other than arrack licenses AFL1, AFL2, AFL3, AFL4 which are issued together with foreign liquor (FL) licenses and license for the sale of bottled toddy[Gazette Notification- Extraordinary 2104/5 (2018.12.31)] w.e.f. 01.01.2019 |
Rs.20,000/- |
| Arrack licenses AFL1, AFL2, AFL3, AFL4 which are issued together with foreign liquor (FL) licenses and license for the sale of bottled toddy [Gazette Notification- Extraordinary 2104/5 (2018.12.31)]w.e.f. 01.01.2019 |
2,000.00 or 10% of license fee whichever is higher per each license |
| Any claim, demand, or request presented for the payment of any sum of money, not including any finance or service charge, due in respect of every credit card transaction entered into during any period commencing on or after January 1, 2016, where the merchant country (the country in which the purchase of goods or service or the withdrawals of money taken place) thereof is a country other than Sri Lanka, irrespective of whether it was a card present or not present transaction in any currency For every Rs.1,000 or part thereof of such sum of money [Gazette Notification- Extraordinary 1947/45 (2016.01.01)]w.e.f. 01.01.2016 |
Rs. 25/- |
| Any share certificate issued consequent to the issue, transfer or assignment of any number of shares of any company. For every Rs.1, 000 or part of thereof, of the aggregate value of such shares being the value, which in the opinion of the Assessor/Assistant Commissioner/ deputy Commissioner/ Senior Deputy Commissioner, that such shares would have fetched in the open market on the date of such issue, transfer or assignment [Gazette Notification- Extraordinary 1882/17 (2014.09.30)& 1864/2(2014.05.26)]w.e.f.26. 05.2014 |
Rs.5/- |
| Any Bond or Mortgage for any definite and certain sum of money and affecting any property for every Rs.1,000 or part thereof [Gazette Notification- Extraordinary 1933/14 (2015.09.21)]w.e.f. 21.09.2015 |
Rs.1/- |
| Any promissory Note For every Rs.1,000 or part thereof [Gazette Notification- Extraordinary 1465/19 (2006.10.05)] w.e.f. 2006.10.05 |
Rs. 1/- |
| Any instrument relating to the lease or hire of any property |
- For every Rs.1,000 or part thereof of the aggregate lease or hire including any premium, payable for the whole term comprised in the lease or hire Agreement (other than a hire purchase agreement)
Provided that where the term of the lease or hire exceeds twenty years, the aggregate hire or lease payable for the whole term comprised in the lease shall be deemed to be the aggregate of the hire or lease payable for the first twenty years of such term;[Gazette Notification- Extraordinary 1465/19 (2006.10.05)] w.e.f. 2006.10.05
|
Rs. 10/- |
- For every Rs.1,000 or part thereof of the aggregate amount payable under a Hire Purchase Agreement entered into under the consumer Credit Act, No.29 of 1982 [Gazette Notification- Extraordinary 1465/19 (2006.10.05)w.e.f. 2006.10.05
|
Rs. 10/- |
| Any receipt or discharge given for any money or property |
- Up to and including Rs.25,000.00
[Gazette Notification- Extraordinary 1530/13 (2008.01.01)] w.e.f. 2008.01.01
|
Exempt |
- Above Rs.25,000.00
Gazette Notification- Extraordinary 1530/13 (2008.01.01)] w.e.f. 2008.01.01
|
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 - for every year commencing on or after 01.04.2015 |
Rs. 4,000,000/- |
| If live telecast facilities are issued - for every year commencing on or after 01.04.2015 |
Rs. 600,000/- |
| If live telecast facilities are not used - for every year commencing on or after 01.04.2015 |
Rs. 50,000/- |
|
Business of Gaming |
| Business of Gaming (casino) per place of business for license or renewal of a license for five years w. e. f. 31.08.2022 |
Rs. 500,000,000/- |
| Annual fee for the Business of Gaming (casino) per place of business w. e. f. 01.04.2015 |
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 |
USD 100 or equivalent |
|
Business of Bookmaker |
| 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% |
|
| |
| |
|
|
| |
|
|
