Sri Lanka: Taxes and Costs
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High progressive
income tax rates in Sri Lanka
Effective Tax Rate on Rental Income |
|||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | |||
| Click here to see a worked example | |||
Source: |
Disclaimer | ||
INDIVIDUAL TAXATION
Non-residents are taxed only on profits and income derived from Sri Lankan sources.
INCOME TAX
Income is taxed at progressive rates.
INCOME TAX |
|
| TAXABLE INCOME, LKR (US$) | |
| Up to 300,000 (US$2,694) | nil |
| 300,000 – 600,000 (US$5,388) | 5% on band over US$2,694 |
| 600,000 – 800,000 (US$7,185) | 10% on band over US$5,388 |
| 800,000 – 1,000,000 (US$8,981) | 15% on band over US$7,185 |
| 1,000,000 – 1,200,000 (US$10,777) | 20% on band over US$8,981 |
| 1,200,000 – 1,400,000 (US$12,573) | 25% on band over US$10,777 |
| 1,400,000 – 1,900,000 (US$17,063) | 30% on band over US$12,573 |
| Over 1,900,000 (US$17,063) | 35% on all income over US$17,063 |
| Source: Global Property Guide | |
Surtax
The Social Responsibility Levy (SRL) is imposed on the gross income tax liability at 1%.
RENTAL INCOME
Rental income earned by non-residents is taxed at progressive rates. Rates paid by the owners or the estimated annual rental value of the property as assessed by the local governments are deductible to arrive at the assessable income. Then, a standard deduction of 25% of the assessable income is given to all taxpayers earning rental or leasing income to account for income-generating expenses.
CAPITAL GAINS
Capital Gains Tax (CGT) was abolished in April 2002.
Sri Lanka - more data and information
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