Rental Income Tax Sri Lanka
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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:
 |
Notes
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.