The Inland Revenue Department (IRD) has announced that its e‑service platform is now open for taxpayers to file returns for the Year of Assessment 2025/2026.

According to the notice, taxpayers can submit Corporate Income Tax (CIT), Partnership Income Tax (PIT), and Individual Income Tax (IIT) returns, including the simplified IIT option.

The Department has set November 30, 2026 as the deadline for filing, urging taxpayers to complete submissions electronically before the cut‑off date. 

The IRD added that updated information is available on the Department’s website; www.ird.gov.lk. (Newswire)

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The Inland Revenue Department (IRD) says the validity of the Personal Identification Number (PIN) issued for the submission of the returns of income for the Year of Assessment 2024/2025 has been extended to 30 November 2025.

Issuing a statement, the IRD said the extension is valid for PINs that have already been sent to taxpayers. 

The extension of PIN applies to the submission of the returns of income concerning Individual Income Tax, Partnership Income Tax, and Corporate Income Tax. (Newswire)

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The Inland Revenue Department has informed the Colombo Additional Magistrate’s Court that it intends to file indictments before the Colombo High Court against Sri Lankan model Piumi Hansamali and Aura Lanka Group Chairman Viranjith Thambugala over alleged tax evasion.

Senior State Counsel Dinesh Perera, appearing on behalf of the Commissioner General of Inland Revenue, told the court yesterday (July 31) that investigation reports have been submitted to the Attorney General, and that indictments are expected to be filed soon before the High Court.

According to the Mawbima newspaper, Piumi Hansamali is accused of failing to pay Rs. 194 million in personal income tax for the years 2022 and 2023, including Rs. 95 million in tax owed through business activity under the company named “Lolila”.

Chairman of Aura Lanka Group, Thambugala, is also accused of evading Rs. 194 million in income and additional taxes, including penalties and interest, during the same period.

The Inland Revenue Department alleges that both individuals committed willful tax evasion under Sections 186, 189, and 190 of the Inland Revenue Act No. 24 of 2017.

The department also submitted updated progress reports on the investigations to the court, noting that both suspects had deliberately deprived the State of taxes due. (Newswire)

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A Sri Lankan opposition lawmaker’s decision to publish his monthly salary slips has sparked public debate and prompted the Government Medical Officers’ Association (GMOA) to file a Right to Information (RTI) request seeking clarity on how lawmakers’ income taxes are calculated.

Kalutara District MP Jagath Withana of the Samagi Jana Balawegaya shared payslips on Facebook showing his salary, allowances and tax deductions from January to May 2025. The documents revealed that in May, Withana earned Rs. 327,713.92, while only Rs. 3,728.53 was deducted as Advance Personal Income Tax (APIT).

The disclosure drew criticism online, with many noting that private sector employees earning similar salaries pay significantly higher monthly taxes. Under tax reforms introduced in April, an employee earning Rs. 300,000 is liable to pay at least Rs. 20,000 in monthly APIT.

In a letter dated July 9, the GMOA asked Parliament to disclose how allowances and pensions for MPs are determined and whether they receive tax exemptions not available to other professionals. The group also requested information on the legal basis for any such exemptions and how pensions are calculated.

The GMOA urged authorities to respond within 14 working days, as required under the RTI Act No. 12 of 2016. (Newswire)

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The Colombo Magistrate’s Court today ordered the arrest and presentation in court of former Parliamentarian Sajin Vass Gunawardena.

The order was issued due to Gunawardena’s failure to appear in court over a case filed by the Commissioner of Inland Revenue against the non-payment of income tax of Rs. 36.9 million.

The Commissioner of Inland Revenue had filed this case in 2023, regarding the non-payment of income tax by businessman Sajin Vass Gunawardena for the years 2010-2012.

Appearing on behalf of the complainant, Dinesh Perera, informed the court that the defendant had been served with several summons but had not appeared in court.

Taking into consideration the facts presented, Additional Magistrate Pavithra Sanjeevani Pathuraja issued a warrant ordering the defendant to be produced before the court. (Newswire)

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The Presidential Secretariat, together with the Inland Revenue Department (IRD), has declared a National Tax Week, from 02 to 08 June 2025.

Addressing the media, the IRD Deputy Commissioner General, P.K.S. Shantha, said that the measure is part of a nationwide initiative to raise awareness about the importance of tax contributions.

He further said the IRD was aware of the number of people who properly pay income taxes and those who evade. 

“Through this National Tax Week, we hope to educate those who fail to pay income taxes due to not knowing the regulations and those who pay income taxes below their tax threshold. We intend to teach the proper system of tax payments,” he said. 

With regard to the Taxpayer Identification Number (TIN), IRD officials said over 10 million people have obtained the TIN as of now, with more set to receive it. 

They further advised the public to verify if they have received their TIN, which could be done by entering their NIC number on the IRD website in the portal related to the Taxpayer Identification Number.

The IRD officials pointed out that some people may have already been issued a TIN by the Inland Revenue Department, which could be verified through this process. (Newswire)

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The Cabinet of Ministers has approved revisions to the Inland Revenue Act No. 24 of 2017 related to provisions linked to retention tax for low-income earners and the Tax Identification Number (TIN) to open bank accounts.

According to the government, legal provisions to increase the retaining tax rate from 5% to 10% were introduced by the Inland Revenue (Amendment) Act No. 2 of 2025 with effect from 01 April 2025.

It has been observed that due to charging retention tax even from individuals with an income not exceeding Rs.1.8 million, which is the annual revenue limit to recover tax from, such depositors and low-income earning individuals are facing inconvenience. 

The government states that as a remedy to the issue, it is proposed to introduce a methodology to present a self-declaration by individuals with a low income below the tax-free margin. 

Therefore, the Cabinet approved the proposal submitted by the President, in his capacity as the Minister of Finance, Planning and Economic Development, to introduce a self-statement for all domestic depositors with an estimated revenue not exceeding Rs. 1.8 million per annum to release them from the recovery of the retention tax on interest.

Approval has also been granted for the proposal to amend the Inland Revenue Act No. 24 of 2017, including appropriate amendments for making compulsory the submission of the Tax Identification Number (TIN) for opening all sorts of bank accounts. (Newswire)

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The Inland Revenue Staff Association says the personal income tax proposal in the 2025 Budget shows the government’s aim to provide relief to lower-income earners while retaining professionals in Sri Lanka. 

The Association’s Secretary told the media that the personal income tax threshold will be reduced from 01 April 2025, which is a positive development.

“Per the new amendment, for an individual earning a monthly income of Rs.500,000, the income tax payable will be Rs.86,000. This is a reduction of over Rs.22,000 for that income bracket. 

Similarly, an individual with a monthly income of Rs.250,000 previously paid Rs.21,000 in taxes. Under the new amendments, they will be required to pay only Rs.8000, saving around Rs.13,000,” he explained. 

According to the Inland Revenue Amendment Bill, the new personal income tax thresholds are as follows;

• A monthly income of up to Rs. 150,000 will be exempt from personal income tax. 
• A monthly income exceeding Rs. 150,000, will see the first Rs. 83,334 taxed at 6%, amounting to Rs. 5000.
• The next Rs. 41, 667 will be taxed at 18%, amounting to Rs. 7,500.
• The subsequent Rs. 41,667 will be taxed at 24%, amounting to approximately Rs. 10,000.
• The next Rs. 41,667 will be taxed at 30%, amounting to approximately Rs. 12,500.
• Any income exceeding this will be taxed at 36%. (Newswire)

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The government’s 2025 budget outlines a 15 per cent services export tax for individuals in Sri Lanka who provide services to external parties and bring back foreign exchange, it was reported. 

According to EconomyNext, the Head of Tax Services at BDO Sri Lanka, Sarah Afker said freelancers doing IT work for foreign parties and other professionals who provide services to foreign parties fall under this category.

Afker explained that the services export tax had been listed as a corporate tax in the budget, but Bills to amend the Inland Revenue Act published later indicate that the tax also applied to individuals.

She added that from 01 April 2025, that particular description, as well as any other foreign source income, will be liable for a 15 per cent tax. 

Sarah Afker highlighted the following key factors linked to the tax;

• The tax will apply if the money is brought back to Sri Lanka through the banking system. Up to now, such incomes were exempted, to encourage foreign exchange earnings.
• Under changes proposed to the Inland Revenue Act on individual income tax, income up to 1.8 million rupees is exempt from tax. The next 500,000 is taxed at 6 per cent.
• The earlier 12 per cent tax will be removed and the next 500,000 slab will be taxed at 18 per cent.
• Foreign exchange earnings will be at 15 per cent, above the 6 per cent rate without an upper limit.
• Corporates who export services are taxed only on profits after deducting expenses.
• Individuals could also try to submit an income statement and charge expenses.

The tax specialist added that the services export tax has been included as the International Monetary Fund had proposed a 30 per cent tax, but the government had negotiated it down to 15 per cent. (Newswire)

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The deadline for submitting income tax returns for the 2023/2024 assessment year has been extended until 07 December 2024.

Initially, the Inland Revenue Department (IRD) announced that the deadline for submitting income tax returns for the said assessment year ends on 30 November.

Issuing a statement, the IRD said, however, taking into consideration the impact to several areas due to adverse weather, it has been decided to extend the deadline.

The Department noted that taxpayers will not face penalties or legal action if their submissions are made on or before the new deadline.

The IRD states reports of income tax returns will only be accepted via its online system, and those who require technical support can acquire the necessary help from the head office, and regional and city offices. (Newswire)

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The deadline for submitting income tax returns for the assessment year 2023/2024 ends today (30 Nov).

The Inland Revenue Department (IRD) said that the reports of income tax returns will only be accepted via its online system.

The IRD further said that those who require technical support can acquire the necessary help from the head office, and regional and city offices, which will remain open today. 

The Bank of Ceylon branch located at the head office and Jawatte office premises of the Inland Revenue Department will also be kept open for income tax payments, it added. (Newswire)

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The Inland Revenue Department (IRD) has warned large and medium-scale tax defaulters of consequences, such as property seizures and bank accounts being frozen, if they fail to settle their tax arrears within the specified time period.  

The IRD has provided until October 25 for businesses that come into the Large Taxpayer Units and Upper Corporate Tax categories, and whose overdue amounts are less than Rs. 100 billion, to settle their dues.

Meanwhile, those who are to pay more than this amount have time till December 25 to settle their arrears. 

According to the Sunday Times, IRD Commissioner General Sepalika Chandrasekera revealed that two-thirds of the defaulters are among the 1500 tax file holders who fall into the large and upper corporate tax categories.

Stating that the due taxes are the Value Added Tax (VAT),  she said steps have been taken to inform the defaulters via notice, while some had been summoned and informed in this regard. 

Emphasizing that there would be no extensions to the deadlines for the settlement of arrears, she warned that those who fail to comply will see the seizure of properties and freezing of bank accounts. (Newswire)

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All taxpayers have been informed to settle their final income tax payments for the Year of Assessment 2023/2024, by today (Sep 30).

According to the Inland Revenue Department (IRD), penalties or interest charges will be imposed, as per the laws, against those who fail or delay making their income tax payments. 

The IRD has also urged taxpayers with arrears to settle them on or before 30 October 2024. 

Legal action will be initiated against those who fail to settle their outstanding payments by the said date, the IRD warned. 

The IRD added that further inquiries can be made via the hotline 1944. (Newswire)

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The report from the Cabinet Sub-Committee appointed to investigate and recommend effective utilization of the Revenue Administration Management Information System (RAMIS) was presented to President Ranil Wickremesinghe recently.

Minister of Finance, Economic Stabilization, and National Policy, Ranil Wickremesinghe issued Cabinet Memorandum No. 24/0696/604/079 on ‘Revenue Administration Management Information System (RAMIS) – Obtaining Maintenance Services’ dated April 8, 2024. 

This Cabinet Sub-Committee to investigate and recommend effective utilization of the RAMIS system was appointed following the Cabinet’s decision. The sub-committee, chaired by Minister of Power and Energy Kanchana Wijesekera, included Ministers Tiran Alles and Nalin Fernando as members.

The report, prepared with seven main recommendations, underscores the importance and urgency of effectively utilizing the Income Administration Management Information System.

The key recommendations of the report are as follows;

• Initiate the Expression of Interest (EOI) process to identify suitable partner(s) for managing the application and infrastructure of the Revenue Administration Management Information System (RAMIS).
• Promptly prepare and implement a comprehensive takeover plan before the expiry of the current maintenance contract with Singapore Corporation Enterprises (SCE).
• Following the introduction of Inland Revenue Act No. 24 of 2017, prioritize clearing the system backlog from the assessment year 2019/2020 onwards and report its monthly progress to the Council of Ministers on a quarterly basis.
• Use the National Identity Card (or a future alternative introduced for this purpose) exclusively for identifying individuals for tax collection purposes.
• Integrate the Revenue Administration Management Information System (RAMIS) with a Connected Government Framework that links various government institutions.
• Simplify the tax revenue collection process by developing a user-friendly portal with enhanced user experience (UX) improvements and streamlined online communication.
• Prioritize the amendment of laws and regulations to implement the tax policy changes recommended in this report. (Newswire)

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Sri Lanka’s Inland Revenue Department (IRD) has issued notices to nearly 1000 companies requesting to settle their tax arrears amounting to more than Rs 160 billion, it was reported. 

According to the Sunday Times, IRD Commissioner General Sepalika Chandrasekara said the companies must settle their arrears in six months or face seizure of bank accounts and property.

Chandrasekara further said that the companies had been given notice to pay the arrears, which had been due up to the end of last year, in six months without any extensions.

Stating that some companies had responded and agreed to the seizure of their properties enabling the IRD to collect the arrears payments, Chandrasekara said the companies that had defaulted on their tax payments were being summoned to the IRD to discuss the possibility of recovering the arrears.

According to IRD Commissioner General, among the tax defaulters, are liquor companies, hotels and real estate firms.

“The IRD is following a strict procedure for collecting the arrears and maximum powers under the Inland Revenue Act would be imposed for the recovery. The IRD has also appointed an 11-member committee under a Deputy Commissioner General to collect the tax arrears,” Chandrasekara added. (NewsWire)

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Sri Lanka’s Inland Revenue Department has established a ‘High Wealth Individuals Unit’ (HWIU) to ensure tax compliance of high-wealth persons as part of the institution’s efforts to restore fairness and confidence in the nation’s tax administration.

The new Unit, located at the Large Taxpayer Office, has received additional resources to focus on high-income and high-wealth individuals, and to ensure that they contribute their fair share and pay the right amount of taxes.

As the preliminary measure, the Unit will contact a select number of wealthy individuals and will work with them and their advisors to ensure that they are up to date with their filings of Tax Returns. 

Apart from helping them identify and avoid mistakes or omissions in their initial filings, the IRD will also be conducting additional risk assessments and profiling of wealthy taxpayers to conduct audits on cases that have the highest risks. 

The full statement of Sri Lanka’s Inland Revenue Department (IRD); (NewsWire)

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Leader of the United Republic Front MP Patali Champika Ranawaka has pointed out the impracticality of preparing tax files for every citizen of Sri Lanka, in a statement issued today. 

MP Ranawaka highlighted the considerable time and manpower required, indicating that it takes approximately half an hour to process a single tax file while considering all requisite criteria. 

“With only nine officers tasked with this responsibility, the daily processing capacity is limited to 144 files, making the processing of millions of files a daunting and time-consuming endeavour,” he said.

MP Ranawaka further said that prioritising the collection of unpaid taxes from the 1272 defaulters identified by the Inland Revenue Department should take precedence over opening new tax files for every individual. 

However, he criticised the lack of action taken by the current government in this regard, resulting in an undue burden on the populace and the adoption of impractical measures.

Proposing a more streamlined approach, the Parliamentarian advocated for the utilisation of modern technology, such as QR codes, to accurately monitor people’s transactions. 

He cited the successful implementation of QR codes for fuel transactions as a precedent, suggesting that similar measures could be extended to electricity and water bills. 

“By encouraging the widespread adoption of QR codes, the government could obtain precise data on transactions and their values, facilitating a more formalised tax collection process,” he pointed out.

MP Ranawaka also emphasised that embracing technological solutions not only enhances efficiency but also contributes to a more transparent and accountable taxation system. (NewsWire)

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The Government Medical Officers Association (GMOA) has sought clarification on a recent statement of the Sports Minister claiming that the income of cricketers has been exempted from income tax.

In a letter addressed to the Income Tax Commissioner General, the GMOA has cited a document issued by Sports Minister Roshan Ranasinghe bearing the statement.

Stating that the said document which was issued on November 03, 2023, has been making rounds on social media platforms, the GMOA questioned if such a measure has been implemented. 

The GMOA further pointed out that such exemptions can only be carried out following approval from the Parliament or by amending the Income Tax Act. 

The document by the Sports Minister, verified by NewsWire, does mention the exemption of cricketers’ income from income tax. (NewsWire)

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Nearly 90,0000 companies in Sri Lanka do not pay taxes, the Sectoral Oversight Committee on National Economic and Physical Planning revealed.

Chairman of the Committee MP Mahindananda Aluthgamage stated that from a total of 105,000 companies in Sri Lanka, only 15,000 fulfil their tax obligations.

Stating that there were 295,000 personal tax files in 2022, he stated that in 2023, this further decreased to 204,000 files. 

“Surprisingly, a mere 29,000 individuals among the populace contribute a solitary rupee to the nation’s tax resources through their personal files. On the corporate front, our country hosts 105,000 companies, but merely 15,000 of them fulfil their tax obligations,” he said. 

MP Aluthgamage further said that these concerning statistics reveal significant complications within the nation’s tax collection framework.

“In a bid to fortify Sri Lanka’s fiscal stability and streamline revenue collection by enhancing the state tax mechanism, necessary measures have been initiated to promptly amend the Inland Revenue Ordinance,” he added.

He made the remarks while addressing a media briefing held at the Presidential Secretariat yesterday (Aug.17). (Newswire) 

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The Department of Inland Revenue has reported a significant increase in tax revenue for the first half of 2023.

According to the department, collection soared to Rs. 696,946 million in the first half of this year. 

The department added this was nearly doubling last year’s figures of Rs. 361,832 million reported during the same period. (NewsWire)

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