Sri Lanka - Individual - Personal income taxes (2023)

Residents are subject to income tax on their worldwide income. Non-residents are taxed only on their income in Sri Lanka.

Income tax rates

The latest rates of personal income tax (PIT) are as follows:

Assessment years up to and including 2021/22

Arrival (LKR*)income tax rate (%)
The first 3 million6
The next 3 million12
More than 6 million18

* Sri Lankan Rupees

The period of the first nine months of 2022/23

Incomeincome tax rate (%)
The first 2.25 million6
The next 2.25 million12
More than 4.5 million18

The period of the last three months of 2022/23

Incomeincome tax rate (%)
The first 125,0006
The next 125,00012
The next 125,00018
The next 125,00024
The next 125,00030
More than 625,00036

Assessment years from and including 2023/24

Incomeincome tax rate (%)
The first 500,0006
The next 500,00012
The next 500,00018
The next 500,00024
The next 500,00030
More than 2.5 million36

Preferential tax rates

Favorable tax rates apply to amounts paid to an employee upon termination of employment when the plan applies equally to all employees through compensation, commuted pensions, pensions and contributions to the Employee Foundation. Accumulated employer contribution to an approved or regulated provident fund is tax-free upon withdrawal.

As of January 1, 2020, the tax rates for pensions are as follows:

RetirementTax rate (%)
About the first 10 million LKRnula
On the next LKR 10 million6
On balance12

Withholding Tax (WHT) rates.

You seewithholding taxsection in the income tax overview.


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