Income tax on rent, worked example, in Sri Lanka
January 18, 2018
| Non-resident couple's rental income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Rates and Taxes3 | (400) | (400) | 144,000 | |
| Less Repair (25%)4 | (4,400) | (17,900) | 144,000 | |
| = Taxable Income | 13,200 | 53,700 | 144,000 | |
| Income Tax5 | ||||
| flat rate | 20% | 2,640 | 10,740 | 21,540 |
| Annual Income Tax Due | 2,640 | 10,740 | 21,540 | |
| Other Taxes | ||||
| Levy Social Responsibility | 1% | 26 | 107 | 215 |
| Annual Income Tax Due | 2,666 | 10,847 | 21,755 | |
| Tax due as % of Gross Income | 14.81% | 15.07% | 15.11% | |
Thanks to: |
||||
1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).
2 Exchange rate used: 1.00 USD = 145.00 LKR
3 Estimated values only.
4 Repair allowance is limited to 25% of income after deduction of rates and taxes.
5 Rental income is taxed at a flat rate of 20%.
6 The Social Responsibility Levy (SRL) is computed as 1% of the annual income tax liability.