Tax Registration

Sri Lankan Business Sector has seen steady growth in over the last few decades. Consequently there has been a significant demand from Businesses to assist in proper tax regulations within their organizations. We extend to you our advance Taxation expertise and consultation to assist in Taxation filings, regulations and processes, starting from Incorporation of your organization

TIN (Tax Identification Number)

  • All businesses must register with the inland Revenue Department (IRD) in order to pay the various taxes that arise from doing business
  • First and foremost every business must take a Tax Identification Number (TIN) at the time of setting up the company

VAT (Value Added Tax)

  • Value Added Tax is charged on the Sri Lankan Individuals as well as companies doing business in Sri Lanka.
  • Its charged on the local purchase of goods and services
  • In addition this includes imported goods used for local consumption as well
  • However, Its paid by the seller on behalf of the consumer, and not by the customer directly. Therefore it is called an indirect tax
  • Finally VAT payable to the IRD is 15% of the taxable sales value after deducting the VAT paid for expenses
  • Businesses with sales over Rs. 3 million per quarter must register for VAT
  • However, certain suppliers of goods and services are exempted from VAT

NBT (Nation Building Tax)

  • Every person as well as partnerships (individual, Company, body of persons) doing businesses must pay Nation Building Tax
  • Businesses such as Import, Manufacturing, Retail or Wholesale and furthermore any service provision in Sri Lanka are liable to pay this
  • NBT is charged as a social contribution to the country, for instance towards the welfare of security forces, rebuild communities and infrastructure facilities
  • A business with a quarterly sales of over Rs. 3,000,000 is liable yo pay NBT

PAYE (PAY AS YOU EARN)

  • PAYE is the Income tax liability all employees who earns a gross salary of more than Rs. 100,000 a given month
  • Similarly, company directors who earns a gross salary of more that Rs 100,000 are also liable for PAYE tasx
  • In addition to EPF / ETF the company calculates and file PAYE tax returns monthly based on a special schedule for the total salary