The Inland Revenue Department (IRD) has issued a Notice to Taxpayers that sets out, for the first time in one place, the formal steps for obtaining a Tax Residency Certificate (TRC). It applies to individuals, companies and partnerships. In short: apply on the prescribed IRD form, attach the listed documents, email everything to the International…
The Inland Revenue Department (IRD) has recently issued a revised circular, SEC/2026/E/06 (Revised), dated August 06, 2026. This document outlines the official methodology for computing quarterly income tax instalments, applicable for the Year of Assessment 2026/2027 and subsequent years. For members of the Lanka Tax Club and taxpayers across the country, understanding these procedures is…
Staying ahead of tax legislation is crucial for professionals and businesses. The proposed Inland Revenue Amendment Bill 2026 introduces several significant shifts in Sri Lanka’s tax framework, ranging from Capital Gains Tax hikes to expanded compliance requirements. To help you and your clients prepare, we have summarized the key changes and their effective dates in…
As tax season approaches in Sri Lanka, accurate data entry is critical for a smooth filing process. One of the most common administrative hurdles taxpayers and practitioners face is locating the correct Taxpayer Identification Number (TIN) for banks and finance companies. When preparing your Return of Income, you are often required to disclose specific details…
Employment income is an essential component of taxation, representing the total gains and profits derived from an individual’s employment. This includes all remuneration received in cash or kind from an employer as compensation for services rendered. For the year of assessment (Y/A) 2023/2024 in Sri Lanka, employment income plays a pivotal role in calculating the…
In terms of section 102(1) of Inland Revenue Act, No. 24 of 2017 (IRA), every person chargeable with Income Tax shall obtain the registration with the Commissioner General of Inland Revenue (CGIR). Further to that, in terms of the section 102(3) of IRA, the Extraordinary Gazette Notification bearing No 2334/21 dated 31/05/2023 issued specifies additional…
Circular No. SEC/2023/E/03, issued on May 9, 2023, provides guidance on the calculation of Income Tax payable for the year of Assessment starting from April 1, 2022. The circular, published by the Inland Revenue Department of Sri Lanka, aims to assist taxpayers in understanding the process and requirements for determining their income tax liability. It…
The Circular SEC 2022/E/05 (Rev) issued by the Inland Revenue Department (IRD) of Sri Lanka provides guidance on the quantification of values for non-cash benefits in calculating employment income for tax purposes. The circular defines non-cash benefits as any benefit provided by an employer to an employee, other than cash, that has a monetary value….
Notice to ETF Board, Provident Funds and Employers who have retained the Tax on Terminal Benefits to Retiring Employees. Any amount retained by the Employees’ Trust Fund (ETF) Board, any Provident Fund or Employer (hereinafter referred to as the “Retainers”) as per the Guideline published by Circular No. SEC/2020/02 of the Commissioner General of Inland…
The Government has published bills to amend the Income Tax and VAT Act. These bills subject to pass by the parliament and certify by the Hon. Speaker. Income Tax Income Tax (Amendment) Bill – English Income Tax (Amendment) Bill – Sinhala VAT VAT (Amendment) Bill – English VAT (Amendment) Bill – Sinhala