Sri Lanka
Individual - Taxes on personal income
Last reviewed - 02 August 2023Resident individuals are subject to income tax on their worldwide income. Non-resident individuals are taxed only on their Sri Lanka-sourced income.
Personal income tax rates
Recent personal income tax (PIT) rates are as follows:
Years of assessment up to and including 2021/22
Income (LKR*) | PIT rate (%) |
First 3 million | 6 |
Next 3 million | 12 |
Over 6 million | 18 |
* Sri Lankan rupees
Period of first nine months of 2022/23
Income | PIT rate (%) |
First 2.25 million | 6 |
Next 2.25 million | 12 |
Over 4.5 million | 18 |
Period of last three months of 2022/23
Income | PIT rate (%) |
First 125,000 | 6 |
Next 125,000 | 12 |
Next 125,000 | 18 |
Next 125,000 | 24 |
Next 125,000 | 30 |
Over 625,000 | 36 |
Years of assessment from and including 2023/24
Income | PIT rate (%) |
First 500,000 | 6 |
Next 500,000 | 12 |
Next 500,000 | 18 |
Next 500,000 | 24 |
Next 500,000 | 30 |
Over 2.5 million | 36 |
Concessionary tax rates
Accumulated employers' contribution to an approved or regulated provident fund, when withdrawn, is exempt from tax. Concessionary tax rates apply to sums paid to an employee on cessation of employment when the scheme is uniformly applicable to all employees by way of compensation, commuted pension, retirement gratuity, and contributions to the Employees Trust Fund.
Tax rates on liable retirement benefits, effective from 1 January 2020, are as follows:
Retirement benefit | Tax rate (%) |
On the first LKR 10 million | Nil |
On the next LKR 10 million | 6 |
On the balance | 12 |
Withholding tax (WHT) rates
See the Withholding taxes section in the Corporate tax summary.