Sri Lankans working overseas do not need to fear additional taxes when sending their legally earned income to Sri Lanka through the banking system, the Inland Revenue Department (IRD) has said.
Senior Deputy Commissioner of the Inland Revenue Department Hiran Meneripitiya said no separate tax is imposed through the banking system when money earned overseas is remitted to Sri Lanka.
Speaking during Ada Derana’s “Big Focus” programme, he explained that the tax treatment of foreign income depends on whether an individual is considered a resident of Sri Lanka for tax purposes during the relevant year of assessment.
If an individual is considered a Sri Lankan tax resident, income earned both in Sri Lanka and overseas may be subject to taxation in Sri Lanka.
However, if an overseas worker is not considered a Sri Lankan resident for tax purposes during the relevant year of assessment, income earned outside Sri Lanka is not subject to tax in Sri Lanka, he said.
Meneripitiya stressed that overseas Sri Lankans should therefore not have unnecessary concerns about sending their legally earned foreign income to Sri Lanka through official banking channels.
He added that individuals can remit legally earned overseas income through the banking system and use those funds for legitimate investments in Sri Lanka after providing the necessary information to the relevant authorities.
The official also cautioned that concerns over taxation should not lead overseas workers to use unofficial or illegal methods to transfer money to Sri Lanka. (Newswire)