Corporate Income Tax
| Standard Rates |
Rates |
| All companies (Other than companies taxed at special rates) | |
| Not dealing in Liquor and Tobacco | 28% |
| Dealing in Liquor and Tobacco | 40% |
| Dividend Tax | 10% |
| Deemed Dividend Tax | 15% |
| Dividend Distributed out of dividends received out of Sri Lanka (if re-distributed within three months of receipt) | Exempt |
| Remittance tax on non-resident companies | 10% |
| Relocating International headquarters in Sri Lanka | Exempt |
| Royalty on International property earned in foreign currency | Exempt |
| Special Rates | Rate |
| Manufactures and service providers with turnover less than Rs. 750Mn for that year of assessment (section 59B) | 12% |
| Supply of services to exporters of goods or services to foreign principal | 12% |
| Listed company with not less than 20% of share issue to the public (if corporate tax rate 28% or more) | ½ of the tax rate |
| Tax Rates Applicable on Certain Persons | |
| (The rate schedule provides all the rates including higher rates on specific areas and concessionary rates) | |
| Venture Capital Companies | 12% |
| Any company of which the Taxable Income does not exceed Rs. 5,000,000 (not a Holding Company, a Subsidiary Company, or an Associate Company of a group of companies) | 12% |
| Clubs and Associations | 10% |
| Profits and Income from Off-shore foreign currency transaction of any Foreign Currency Banking Unit (FCBU) | |
| if the Taxable Income exceeds LKR 5,000,000 | 28% |
| if the Taxable Income does not exceed LKR 5,000,000 | 12% |
| Person other than a company, engaged in Agriculture, Manufacture of animal feed, Promotion of Tourism, or Construction works (maximum) | 12% |
| Company engaged in Agriculture, Manufacture of animal feed, Promotion of Tourism, or Construction works | 12% |
| Specialized Housing Banks | |
| if the Taxable Income exceeds LKR 5,000,000 | 28% |
| if the Taxable Income does not exceed LKR 5,000,000 | 12% |
| Qualified Export Profits (maximum) | 12% |
| Non-citizen Entertainer or Artiste | 12% |
| Profits and Income from Petroleum exploration of any Person or Partner of a Partnership | 12% |
| Non-Governmental Organizations | 28% |
| Undertaking carried on in Sri Lanka for operation and maintenance of storage facilities, Development of Software | |
| Individuals (maximum) | 10% |
| Companies | 10% |
| Educational Services provided by | |
| Individuals (maximum) | 10% |
| Companies | 10% |
| Profits and iIncome of any agricultural undertaking (unprocessed or primary process) referred to in section 16 of the Act | 10% |
| The rate of Income Tax applicable to any partnership on divisible profits and other income, (other than on any assessment made) | 8% |
| Such part of the profits and income of any person from any undertaking for the manufacture of any product for export, or for supply to an exporter for export, being a product having domestic value addition in excess of sixty five per centum and Sri Lankan brand name with patent rights reserved in Sri Lanka (maximum) | 10% |
| Provided Funds, Charities (all) | 10% |
| Any Unit Trust or Mutual Fund & Unit Trust management company | 10% |
| Hindu undivided families | 24% |
| Executor (other than trustees under last wills) and receivers (other than liquidators) | 24% |
| Trustees (including trustees under last wills) | 24% |
| Partnerships (on any assessments made) | 24% |
| Business undertakings vested in the Government under the Business Undertakings (Acquisition) Act No. 35 of 1971 | |
| On the Taxable Income | 28% |
| On the balance of the profits after deduction there from of the tax payable under paragraph (i) | 25% |
| Employees Trust Fund and Provident or Pension Funds | 10% |
| Any thrift, saving or building society or welfare fund to which contributions are made by employees only or any gratuity funds approved for the purpose of section 25 (1) (o) | 10% |
| Persons (other than those referred to above and in the First and the Second Schedules) | 28% |
| Rate of deduction or income tax from interest, rent, ground rent, royalty or annuity paid or credited to any person or partnership out of Sri Lanka (section 95) | 20% |
| The rate of Income Tax on profits and income from off-shore foreign currency transaction of any foreign currency banking unit (section 41) | 20% |