In Sri Lanka, the taxation landscape has been evolving, and one of the significant changes that have garnered attention is the imposition of a 5% Advance Income Tax (AIT) on interest and discount on deposits. This article delves into the critical aspects of this tax, as outlined in the Inland Revenue Department’s Circulars SEC/2022/E/02 and…
‘‘Canadapura Children’s Home’’ is declared by the Minister by notice published in the Gazette to be an approved charity for the purposes of Section l (a) (ii) of Fifth Schedule of the Inland Revenue Act, No. 24 of 2017. Click here to download the Gazette
Department of Inland Revenue has published Guide to Partnerships Tax Return of Income – Year of Assessment 2018/2019. Download English Guide
Extension of Time to Remit Tax to the Inland Revenue Department Any amount (in lieu of income tax) retained by the Employees’ Trust Fund Board (ETF), any Provident Fund or Employer as per the Circular No. SEC/2020/02 of the Commissioner-General of Inland Revenue dated 18.02.2020, as tax on terminal benefits due for the retiring employees for which…
Individuals who are liable to pay income tax (whose assessable income for a month exceeds Rs. 250,000 per month or Rs. 3,000,000 for a year of assessment), are required to register and obtain Taxpayer Identification Number (TIN) in order to pay Income Tax on a quarterly basis. There are two methods; Manually Online How to register manually (Due…
VAT Return for the month of February 2020 (Monthly VAT Return) is due on March 31, 2020. Due to the prevailing situation of the country, VAT Returns for the above period can be submitted under the following two methods: Taxpayers who do have access to e-Services (RAMIS), can submit the VAT return via e-Service –…
Case Overview 1. The Facts (The Story) Mr. R.W. Sutherland was the Managing Director of the Colombo Apothecaries Company Limited. 2. The Dispute The core disagreement was about how to classify this Rs. 15,750. 3. The Judgment (Held) The Court ruled in favor of Mrs. Sutherland. The payment was NOT taxable. Reasons for the Decision:…
Notice to the Employers and Employees Deduction of Tax on Cumulative Income from Employment for the Period 01.01.2020 – 31.03.2020 As you are already informed by the Inland Revenue Department (IRD) by its notice under the reference No. PN/IT/2020 – 03 (Revised) dated 06.04.2020 published in line with the instructions issued by the Ministry of…
Tax payments & Returns due dates and tax types & payment period codes for the month of October 2020 are as follows: OCTOBER 15TH Advance Personal Income Tax (APIT) for the month of September 2020 is due on October 15, 2020. Individual who has already given the consent to the employer (company) to deduct Advance Personal Income Tax (APIT)…
Inland Revenue Department (IRD) has introduced an Online Tax Payment Platform (OTPP) with effect from 08.02.2020, in addition to the existing tax payment methods to make tax payment with the collaboration of below mentioned banks. In addition to the banks initially interfaced with IRD for this purpose, People’s Bank also provide OTPP facility and in…
The attached notice is from the Inland Revenue Department of Sri Lanka (IRD) regarding the reimbursement of Value Added Tax (VAT) to the purchasers of agricultural tractors. The notice states that the importation of agricultural tractors was exempted from VAT with effect from January 1, 2015, but that VAT was charged on agricultural tractors imported…
The Commissioner General of Inland Revenue has issued a new directive outlining updated formatting and specifications for Value Added Tax (VAT) invoices. Published in the Gazette Extraordinary No. 2481/22 on March 27, 2026, these new rules aim to standardize tax documentation across Sri Lanka. Here is a comprehensive breakdown of the new requirements and how…
This set of guides, which explains very briefly the main provisions of the Inland Revenue Act No. 24 of 2017 (the Act) which provide the Department’s view point of the legal provisions and guidance to the general public and the taxpayers. It is intended to issue a Manual of Income tax providing comprehensive information and…
With effect from January 01, 2024, any individual who is at the age 18 years or more, or who attains the age of 18 years on or after January 01, 2024, it is mandatory to register with the Inland Revenue Department and obtain a TIN (Taxpayer Identification Number). Furthermore, any person who receives an income…