Tax Calculator Sri Lanka

1. What is the individual tax relief for income tax in Sri Lanka?
Every resident individual is entitled to a tax-free allowance of Rs. 1.8 million per year (Rs. 150,000 per month). Income above this threshold becomes taxable based on progressive tax rates.

2. Who can use the Tax Calculator Sri Lanka?
It is suitable for salaried individuals, freelancers, and single-owner businesses who want to estimate their personal income tax liability.

3. What is the maximum income tax percentage in Sri Lanka?
As per the latest Inland Revenue Act, the highest individual income tax rate in Sri Lanka is 36%.

4. Can I use this calculator for corporate tax or VAT?
No. This calculator is designed for individuals and sole proprietors only. It does not apply to corporate income tax, VAT, or other business-related taxes.

5. Do foreigners pay tax in Sri Lanka?
Yes. Foreigners who earn income from Sri Lanka are subject to Sri Lankan income tax. Resident foreigners are taxed on worldwide income, while non-residents are taxed only on income earned within Sri Lanka.

6. How to calculate income tax in Sri Lanka?
Income tax is calculated based on annual taxable income after deducting the personal relief (Rs. 1.2 million per year). Progressive tax rates ranging from 6% to 36% apply depending on income brackets.

7. How to pay income tax in Sri Lanka?
You can pay income tax online through the Inland Revenue Department (IRD) portal or at designated banks using your Taxpayer Identification Number (TIN).

8. How to file income tax in Sri Lanka?
Tax returns must be filed annually via the IRD’s e-filing system or by submitting physical forms. Residents and eligible taxpayers are required to file by the deadline set each year.

9. Who is liable to pay income tax in Sri Lanka?
Any resident individual, foreign resident earning worldwide income, or non-resident earning Sri Lankan-sourced income above the Rs. 1.8 million tax-free threshold is liable to pay income tax.

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