Sri Lanka: Worked Example of Tax on Rent
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Last Updated: Mar 09, 2007
Tax Example: Rent
| Non-resident couple's joint monthly rental income1 | US$1,500 | US$6,000 | US$12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Rates and Taxes2 | (400) | (400) | 144,000 | |
| = Income after deduction of rates and taxes | 17,600 | 71,600 | 144,000 | |
| Less Repair Allowance (25%)3 | (4,400) | (17,900) | 144,000 | |
| = Taxable Income | 13,200 | 53,700 | 144,000 | |
| Income Tax Rates | ||||
| Up to LKR300,000 | 5% | 300 | 300 | 300 |
| LKR300,000 - LKR500,000 | 10% | 400 | 400 | 400 |
| LKR500,000 - LKR700,000 | 15% | 480 | 600 | 600 |
| LKR700,000 - LKR900,000 | 20% | - | 800 | 800 |
| LKR900,000 - LKR1,100,000 | 25% | - | 1,000 | 1,000 |
| LKR1,100,000 - LKR1,600,000 | 30% | - | 3,000 | 3,000 |
| Over LKR1,600,000 | 35% | - | 7,596 | 26,496 |
| = Income Tax Due | US$1,180 | US$13,696 | US$32,596 | |
| Additional Taxes | ||||
| Levy Social Responsibility4 | 1% | 12 | 136 | 326 |
| Annual Income Tax Due | US$1,192 | US$6,916 | US$32,922 | |
| Tax due as % of Gross Income | 6.62% | 19.61% | 22.86% | |
Thanks to: |
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on March 9, 2007.
1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner). Exchange rate used: US$ 1 = LKR 100.
2 Estimated values only.
3 Repair allowance is limited to 25% of income after deduction of rates and taxes.
4 The Social Responsibility Levy (SRL) is computed as 1% of the annual income tax liability.
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