Income tax is charged on every person (residents and non-residents) on profits and income. Residents are charged on their global income while non-residents are charged on income arising in or derived from Sri Lanka..
Any person liable to income tax is required to compute his/her tax liability and remit such tax in four quarterly instalments.
- The due dates of quarterly instalments are: August 15th, November 15th, February 15 of the financial year and May 15 of the next financial year.
- The due date for filing an income tax return is on or before November 30th of the following year of assessment.
- Any individual who is physically present in Sri Lanka for more than 183 days in any year of assessment will be considered to be a resident of the country regarding income tax.
- A resident of Sri Lanka for income tax purposes will be entitled to claim a tax-free allowance of LKR 1,200,000 (2017/18) for each year of assessment.
- An individual who has profits from employment and is a resident or citizen of Sri Lanka is entitled to a further deduction of LKR 250,000 as a qualifying payment.
Combining accounting, tax and payroll compliance services is a very efficient and cost effective way for Centra Management to assist your business from inception and throughout the life of the Company’s operations