The Inland Revenue Department (IRD) has issued a reminder to taxpayers to settle their Advance Income Tax (AIT), Withholding Tax (WHT), and Advance Personal Income Tax (APIT) obligations for the month of July 2026 by August 15, 2026.

According to the notice, payments can be made conveniently through the Online Tax Payment Platform (OTPP) or at any branch of the Bank of Ceylon and People’s Bank. 

Authorities cautioned that late payments will be treated as late tax payments and may incur penalties.

The payment details outlined are:

• AIT / WHT on Interest – Tax Type Code 43, Payment Period Code 26070, Payment Category S
• AIT / WHT on Fees and other Payments – Tax Type Code 44, Payment Period Code 26070, Payment Category S
• APIT – Tax Type Code 03, Payment Period Code 26070, Payment Category S

The IRD emphasized the importance of timely compliance to avoid penalties and ensure smooth processing of tax obligations. Taxpayers are encouraged to use the online platform for efficiency and ease of payment. (Newswire)

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The Inland Revenue Department (IRD) has issued reminders to taxpayers regarding the deadlines for the Social Security Contribution Levy (SSCL) and Value Added Tax (VAT) payments and returns for July 2026.

According to the notice, SSCL payments for July must be made on or before August 20, 2026. 

Taxpayers are encouraged to use the Online Tax Payment Platform (OTPP) or pay through any branch of the Bank of Ceylon. Officials warned that late payments will attract penalties. The SSCL payment details include Tax Type Code 32, Period Code 26301, and Payment Category S.

Similarly, VAT payments for July are due by August 20, 2026, with returns required to be furnished online by August 31, 2026. 

The VAT payment details specify Tax Type Code 70, Period Code 26310, and Payment Category S, while the return filing details highlight Monthly frequency, Period July, and Return Period Code 2631.

The Department emphasized that penalties will be imposed for late or incorrect submissions. It also noted that input tax credits on local purchases and imports will be disallowed if VAT returns are filed late, credits on local purchases must be claimed within 12 months, and credits on imports within 24 months from the due date.

Taxpayers are advised to ensure timely compliance to avoid penalties and safeguard their eligibility for input tax credits. For assistance, the Inland Revenue Department has provided hotline 1944 and further guidance through its official website. (Newswire)

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Speaker of Parliament Jagath Wickramaratne on Wednesday (June 3) endorsed the certificate on the Inland Revenue (Amendment) Bill, which introduces mandatory Taxpayer Identification Number (TIN) certificates for significant financial transactions as part of wider reforms to modernize tax administration.

The Inland Revenue (Amendment) Act, No. 11 of 2026, amending the Inland Revenue Act, No. 24 of 2017, was passed on May 19, 2026. 

The Act clarifies provisions, strengthens compliance and enforcement, improves accuracy in tax calculations, supports strategic economic objectives, and enhances transparency and anti‑money laundering measures.

Key changes include revisions to income calculation, clearer rules on exemptions for specific projects and businesses, and an expanded scope for disclosure of information to relevant authorities.

Accordingly, the Inland Revenue (Amendment) Bill now comes into force as the Inland Revenue (Amendment) Act No. 11 of 2026. (Newswire)

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Tax principal at KPMG, Suresh R.I. Perera, says he hopes the Sri Lankan government will amend parts of the proposed Inland Revenue (Amendment) Bill following the Supreme Court’s determination on key provisions related to taxpayer liability and enforcement.

Perera said the Supreme Court had ruled that proposed Section 185A, which criminalises administrative failures, is constitutional.

“As per the Supreme Court, Section 185A, which criminalizes administrative failures, is constitutional. But there is hope that the government will change this section in favour of taxpayers during the committee stage amendments,” he said.

Perera also pointed out concerns surrounding proposed Section 163(4A–4H), which introduces a “certificate procedure” allowing action through the Magistrate’s Court.

“In relation to the new Section 163(4A–4H) that introduces the ‘certificate procedure’, where the Magistrate is prevented from even questioning the accuracy of the certificate issued by CGIR, the Supreme Court has provided an option to the government. Either pass it with a two-thirds majority or amend it to pass with a simple majority,” he said.

Under the proposed mechanism, the Commissioner General of Inland Revenue (CGIR) could issue a certificate against a taxpayer in default, allowing unpaid taxes to be treated as a fine and potentially leading to imprisonment.

Perera said he expects the government to follow the court’s observations despite having the numbers required to pass the provision unchanged.

“As we all know, the government has a two-thirds majority in Parliament. But since the Supreme Court has pointed out that imprisonment while taxes are under the appellate procedure is not correct, we expect the government to amend it as pointed out by the court and pass it with a simple majority,” he said.

“That is, if an appeal is pending, CGIR will not issue a certificate to initiate Magistrate Court proceedings,” he said. 

The Inland Revenue (Amendment) Bill is being taken up for second reading in Parliament on Wednesday. (Newswire)

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The Department of Inland Revenue has announced a further postponement of the effective date for imposing Value Added Tax (VAT) on digital services supplied through electronic platforms by non-resident service providers.

According to WEB Notice No. PN/VAT/2025-03, originally issued on October 1, 2025, the tax was scheduled to take effect earlier this year. 

However, issuing a notice, the department announced that implementation has now been deferred until July 1, 2026, subject to formal amendment of the VAT Act.

The Finance Ministry had earlier announced that the effective date, initially set for October 2025, was postponed to April 2026.

At the time, the government said the delay was due to requests from stakeholders in the digital services sector, noting that it had engaged with them and they had asked for more time to prepare for compliance. (Newswire)

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The new format and specifications for tax invoices to be issued by all individuals registered for Value Added Tax (VAT), which were scheduled to commence today (April 1), have been postponed.

The Commissioner General of Inland Revenue announced that the implementation date has been extended by three months, with the new system now set to take effect from July 1, 2026.

The change follows an amendment to Extraordinary Gazette Notification No. 2463/05, dated November 17, 2025, which had earlier prescribed April 1 as the effective date.

The revised regulations will apply to all persons registered for VAT. (Newswire)

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Sri Lanka’s Finance Ministry and the Inland Revenue Department have held high-level discussions to broaden the tax base, simplify the tax filing process, and reduce bureaucratic barriers, the ministry said in a statement.

The meeting, chaired by Deputy Minister of Economic Development Nishantha Jayaweera, was attended by Inland Revenue Commissioner General Rukdevi Fernando and senior officials.

The Finance Ministry said officials were directed to take steps to encourage voluntary tax compliance and to accelerate taxpayer awareness initiatives.

During the meeting ,the Deputy Minister had instructed that taxpayer inconveniences in filing returns be minimized and that forms be simplified as much as possible.

He had also called for a practical plan from the Inland Revenue Department to meet the annual revenue target.

The discussion focused on strategies to achieve the government’s revised tax revenue goals for 2025.

According to the 2026 budget, Sri Lanka has raised its 2025 tax revenue target from Rs. 4,590 billion to Rs. 4,725 billion, an increase of 2.9%. 

This revision is attributed to higher projected earnings from income tax and levies on goods and services, including vehicle import taxes.

The income tax target for 2025 was increased by 3.7% to Rs. 1,210 billion, while the target for goods and services levies rose by 6.5% to Rs. 2,953 billion. (Newswire)

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The Inland Revenue Department (IRD) today reiterated that all individuals and businesses registered for income tax must submit their 2024/2025 Year of Assessment returns online by November 30, 2025. 

The Department warned that failure to meet the deadline may lead to legal consequences under the Inland Revenue Act No. 24 of 2017, including penalties, interest and possible audits against defaulters.  

Taxpayers across all categories, individuals, corporations, partnerships and other registered entities, are required to comply. The IRD said its online e-filing portal is fully operational for the submission of returns.  

The IRD urged those facing difficulties to contact the helpline at 1944 or visit the nearest regional office for assistance. 

As a reminder, this filing requirement applies even for those under the simplified Individual Income Tax (IIT) scheme, or those required to submit corporate or partnership income tax returns for the 2024/2025 assessment year. (Newswire)

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The Inland Revenue Department has issued a public notice urging the submission of income tax returns for the 2024/2025 assessment year by the end of November.

According to the Department, all individuals registered for income tax, under the specified assessment year, are required to submit their tax returns online on or before November 30.

The Department warned that failure to comply with the deadline may result in legal action under the Inland Revenue Act No. 24 of 2017.

Further information can be obtained by calling 1944, visiting the official website at www.ird.gov.lk, or contacting the nearest regional office of the Inland Revenue Department. (Newswire)

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Sri Lanka’s Inland Revenue Department collected 102% of its expected tax revenue by the end of September, officials told the Parliamentary Committee on Ways and Means.

The agency said actual revenue reached Rs. 1.64 trillion as of September 30, compared with the expected Rs. 1.61 trillion. The figure represents 75% of the full-year target of Rs. 2.19 trillion.

The data was presented during a committee meeting chaired by lawmaker Wijesiri Basnayake recently (08). 

Committee members reviewed revenue performance, ongoing digitalization, and challenges in tax administration, while they also called for reform proposals aimed at improving the department’s operations.

Commissioner General of Inland Revenue R.P.H. Fernando and other senior officials attended the meeting. (Newswire)

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The Inland Revenue Department (IRD) has announced the abolition of the Simplified Value Added Tax (SVAT) and the introduction of the Risk-Based Refund Scheme (RBRS). 

Issuing a notice for registered persons for SVAT, the IRD states that the SVAT scheme will be abolished with effect from 01st October 2025 and will be replaced by the Risk-Based Refund Scheme. 

According to the IRD, the RBRS scheme aims to facilitate timely and efficient VAT refunds for eligible exporters and projects. While refunds will be issued within 45 days, subject to conditions. 

The IRD further states that refunds will be issued to eligible VAT registrants for taxable periods commencing on or after 01st October 2025, based on a risk-based rating system.

As such, eligible VAT registrants will be evaluated by being classified into three categories: low, medium, and high risk, to determine how refunds are processed. 

Eligible VAT registrants for VAT refunds under the new scheme are exporters, projects, and suppliers to projects. (Newswire)

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The Inland Revenue Department (IRD) announced the relocation of its Tax Crime Investigation Unit to the 10th floor of the Department, in a move aimed at expanding operations and strengthening enforcement against tax-related crimes.

The Unit, established on January 1, 2025, was formally relocated on August 21 with the participation of Commissioner General of Inland Revenue, Mrs. Rukdevi Fernando, senior officials, and IMF Resident Tax Administration Advisor Mr. Gregory Topping.

According to the IRD, the primary mandate of the Unit is to investigate and initiate criminal proceedings on tax-related offenses under Chapter XVIII of the Inland Revenue Act, No. 24 of 2017. Offenses under its scope include deliberate tax evasion, obstructing tax administration, aiding in criminal activities, and other unlawful practices. Prosecution will be carried out by the Attorney General’s Department.

The Department said the Unit will also coordinate with the Attorney General’s Department, the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), the Central Bank of Sri Lanka, the Criminal Investigation Department (CID), Sri Lanka Customs, and the Excise Department.

Several legal proceedings have already been initiated, and the IRD confirmed that further expansion of the Unit’s activities is planned in the future.

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A Deputy Commissioner of the Department of Inland Revenue (IRD) has been arrested by the Bribery Commission for soliciting a bribe of Rs. 50,000 from a businessman

According to the Bribery Commission, he was arrested while accepting the bribe at the IRD Office on Jawatte Road in Colombo.  

The Bribery Commission says the IRD official had solicited the bribe from a businessman in Piliyandala to provide a tax clearance report for his business in Dematagoda.

The IRD official had solicited a Rs. 100,000 bribe, but the businessman had managed to reduce it to Rs. 50,000, after which an initial payment of Rs. 42,000 had been paid to the official on 3rd July.

Bribery Commission officials had apprehended the IRD official while accepting the remaining Rs. 8000 in cash today. 

The arrested IRD Deputy Commissioner is to be produced before the Colombo Magistrate’s 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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A group of Sri Lankan cricketers have arrived in court today in connection with a hearing on the writ petition filed challenging the arbitrary classification of national cricketers as employees of Sri Lanka Cricket (SLC) by the Inland Revenue Department (IRD).

The Writ petition was filed by Charith Asalanka and Dhanajaya De Silva as the respective captains of the One Day International and Twenty20 cricket teams and the Test Cricket Team.

The petition was preferred by the cricketers in relation to the arbitrary and unreasonable overnight classification of Sri Lanka’s national cricketers as employees of the national association, SLC, by the Inland Revenue Department.

The petitioners filed the writ petition seeking notice to quash the decision of the IRD and an interim order to suspend the decision.

A letter signed by 38 national cricketers, including players Wanindu Hasaranga, Angelo Mathews, Maheesh Theekshana, Pathum Nissanka, and Kusal Mendis, setting out the grievance and endorsing the petitioners to seek appropriate legal redress on the unlawful classification, was also placed before the Court of Appeal in March.

On behalf of the petitioners, it was submitted that Sri Lanka’s cricketers have been historically treated as independent service providers and in fact they cannot be construed to be employees and from the first instance of adoption of contracts between SLC and players, national cricketers have been treated as independent service providers between the parties. (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 Department has announced that from April 1, 2025, banks and financial institutions must deduct a 10% Advance Income Tax (AIT) on interest, discounts, and Islamic financial income paid to deposit holders.

The directive, issued via Circular No. SEC/2025/E/02, applies to any person receiving such payments from sources in Sri Lanka.

Provisions under the Double Tax Avoidance Agreement (DTAA) may apply for non-resident deposit holders seeking lower AIT rates through a valid clearance certificate from the Inland Revenue Department. (Newswire)

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President Anura Kumara Dissanayake has instructed officials to take necessary measures to ensure the full tax revenue owed to the Inland Revenue Department is collected. 

He issued the instructions during a meeting with officials of the Inland Revenue Department held at the Presidential Secretariat on Wednesday (05 Mar).

During the discussion, extensive attention was given to the strategies required to achieve the targeted revenue of the Inland Revenue Department for this year. 

The President emphasized the necessity of a more intervention approach than the current mechanisms in place to recover uncollected revenue. (Newswire)

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The Inland Revenue Department (IRD) has announced that the levy on the gross collection of betting and gaming businesses for February 2025 must be paid on or before 07 March 2025.  

According to a notice issued by the IRD, the levy should be settled by the end of the first week of the month following the relevant month or before.  

For further inquiries, businesses can contact the IRD via the hotlines 0112135136, 0112135180, or 0112135171.

More details are also available on the department’s official website: www.ird.gov.lk. (Newswire)

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The highest ever tax revenue in Sri Lanka’s history was recorded in 2024, collecting Rs.1.95 trillion, the Inland Revenue Department reported today.

According to the IRD, the figure is a 25.1% increase compared to the Rs.1.56 trillion collected in 2023. 

Stating that Rs. 1,023 billion was collected as income tax, the IRD further said that revenue from Income Tax rose by Rs.112.1 billion in 2024.

Meanwhile, revenue from Value Added Tax (VAT) increased by Rs.245.5 billion, the IRD added. (Newswire)

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