Asia-Pacific · Tax guide
Sri Lanka
Sri Lanka taxes companies at 30%, charges VAT at 18% with registration from Rs 36,000,000, and adds a Social Security Contribution Levy of 2.5% for larger businesses. Taxes are administered by the Inland Revenue Department (IRD).
At a glance
- Corporate income tax
- 30%
- VAT
- 18%
- Social Security Contribution Levy
- 2.5%
- Withholding on dividends
- 15%
Standard rate
Registration above Rs 36,000,000
On turnover of larger businesses
Lower on interest, royalties and services
Income tax
Companies pay 30%, with quarterly instalments and a return by 30 November. Larger businesses also pay the Social Security Contribution Levy of 2.5% on turnover.
VAT
VAT is 18%. Registration is required once taxable supplies exceed Rs 36,000,000 a year; returns are monthly.
Withholding tax
Dividends carry 15% withholding, with slightly lower rates on interest, royalties and services paid to non-residents, unless a treaty lowers them.
Key dates
- MonthlyVAT return
- QuarterlyIncome tax instalments
- 30 NovemberAnnual income tax return
Figures and sources
5 figures- Corporate income tax rate30%Under professional review
- VAT rate18%Under professional review
- Annual taxable supplies above which VAT registration is requiredRs 36,000,000Under professional review
- Social Security Contribution Levy on turnover above LKR 120 million2.5%Under professional review
- Withholding on dividends (14% on interest, royalties and services paid to non-residents)15%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Sri Lanka based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Sri Lanka (a Sri Lankan chartered accountant) before making compliance decisions.