WHO GOVERN THE INCOME TAX ?
Inland Revenue Department Sri Lanka under the Inland Revenue Act, No. 24 of 2017
WHO SHOULD PAY THE TAXES?
Every person who carries on a taxable activity,
If total value of supplies exceeds Rs. 75Mn per quarter OR 300Mn per annum w.e.f. 01.01.2020.
(However, any person who carries out a taxable activity can register for VAT irrespective of registration threshold)
HOW TO PAY VAT?
Using an online tax payment platform OR
Using a BOC Bank counter with using filled Payment Slip which is received from IRD.
WHEN TO PAY THE TAXES?
Income Tax Liable to pay Self-Assessment Basis in Monthly & once a two week Installments
HOW MUCH YOU SHOULD PAY?
|
Taxable Income
|
Tax Rate
|
|---|---|
|
Standard Rate
|
8%
|
|
VAT on Financial Services
|
15%
|
|
Direct export of goods and certain services provided outside Sri Lanka.
|
0%
|
WHAT SHOULD CONCERN WHEN YOU PAY VAT?
- Tax Type
- Payment Code
HOW YOU CAN RECOGNIZE TAX TYPE & PAYMENT CODE?
When you pay taxes it is most important to fill in the tax type code and payment period code correctly.