Tax Rates in Sri Lanka for 2016-2017, 2015-2016, 2014-2015

Sri Lanka Individual Income Tax Rate Year 2014/2015

Taxable Income (Rs)

Tax Rate %
 

First Rs. 5,00,000/-

  

4%
 

Next Rs. 5,00,000/-

  

8%
 

Next Rs. 5,00,000/-

  

12%
 

Next Rs. 5,00,000/-

  

16%
 

Next Rs. 10,00,000/-

  

20%
 

On Balance

  

24%

 

Tax free allowance for residents/non - resident citizens of Sri Lanka is Rs. 500,000/-

Additional allowance by way of qualifying payment (maximu​​m) of Rs.100, 000 is granted on employment income.

 

 

Sri Lanka Corporate Income tax Rate Year 2014/2015

All companies (Other than companies taxed at special rates)

 

Standard Rates

Tax Rate %
 

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

Tax Rate %
 

Manufactures and service providers with turnover less than Rs. 500Mn 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)

  

? of the tax rate

 

Sri Lanka Income Tax Rates for 2014 and Deductions

Sri Lanka Income Tax Rate for Individual Tax Payers

Lowest Individual Tax Rate in Sri Lanka is 4% and Highest Rate is 24%

Special Rates are applicable on certain employment income

Corporate Tax Rates in Sri Lanka

The corporate income tax rate is 28%. Small companies (with turnover not exceeding LKR 500 million and not belonging to a group of companies) are taxed at a lower rate of 10%. Certain sectors enjoy concessionary rates, such as exports (other than traditional products), tourism and construction which are taxed at 12%, and agriculture which is taxed at 10%, with an exemption on offshore services. Companies engaged in liquor or tobacco products are taxed at a higher rate of 40%. The social responsibility levy of 1.5% on income tax was rescinded effective 1 April 2011. A deemed dividend tax at 15% is applicable for non-declaration of at least 10% of distributable profits.

Non Resident Tax Rates in Sri Lanka

Nonresidents are taxed only on profits and income derived from Sri Lankan sources. Married couples are assessed and taxed separately.

Capital Gain Tax Rates in Sri Lanka

Capital Gain Tax is abolished in April 2002

Property Tax Rates in Sri Lanka

There is no Property Tax in Sri Lanka

Sri Lanka Dates of filing Returns / Reporting and Payment

Tax Year is from April to March
Tax return needs to be filed by 30th November