What is the corporate income tax rate in Sri Lanka for 2025/26?

The standard corporate income tax rate is 30% of taxable profit for the year of assessment 2025/26. Concessionary rates apply to some sectors — for example 15% on qualifying service exports (such as IT/BPO) from 1 April 2025, 18% for certain manufacturing, and 40% for liquor, tobacco, betting and gaming.

What is a TIN and how do I get one in Sri Lanka?

A TIN (Taxpayer Identification Number) is the unique number the Inland Revenue Department issues to identify a taxpayer. A company applies for a TIN through the IRD e-Services portal at eservices.ird.gov.lk under Taxpayer Registration, uploading its certificate of incorporation and Business Registration details. Applications are usually processed within 3–7 working days, after which you receive a TIN and a PIN to activate your e-Services account.

When does a company pay income tax in Sri Lanka?

The year of assessment runs from 1 April to 31 March. Income tax is paid on a self-assessment basis in four quarterly instalments, generally due on or before 15 August, 15 November, 15 February and 15 May, with any final balance due by 30 September after the year-end. The annual income tax return is due by 30 November following the year of assessment. Always confirm current dates on the IRD Tax Calendar.

How do I pay company tax online in Sri Lanka?

Log in to the IRD e-Services portal (eservices.ird.gov.lk), generate a Payment Voucher Number (PVN) for the relevant tax type and period, then pay using online banking, a participating bank, or LankaPay, quoting the PVN. The payment is matched to your TIN and tax account automatically.

What accounting records must a Sri Lankan company keep?

Under the Companies Act No. 7 of 2007 a company must keep proper accounting records, prepare financial statements (under SLFRS/LKAS) and have them audited by a member of CA Sri Lanka. The Inland Revenue Act also requires you to retain tax records and supporting documents (invoices, receipts, payroll) for the period specified by the IRD.

Sri Lanka Private Limited Company Tax Guide (2025/26)

Q: What taxes does a private limited company pay in Sri Lanka?

A Pvt Ltd company typically pays Corporate Income Tax (standard 30%) on its profits, plus VAT (18%) if its turnover exceeds the registration threshold, and the Social Security Contribution Levy (SSCL, 2.5%). As an employer it also deducts APIT from staff salaries and remits EPF (employer 12%, employee 8%) and ETF (3%), and may have to withhold WHT on certain payments.

Q: Do I need to register for VAT?

VAT registration becomes mandatory once your taxable turnover exceeds the threshold — LKR 60 million per year (about LKR 15 million per quarter) in 2025/26, reducing to LKR 36 million from 1 April 2026. The standard VAT rate is 18%.

Just registered a private limited company in Sri Lanka? This plain-English guide explains exactly what taxes you owe, how and when to pay them, how to get a TIN, how to use the IRD e-Services (RAMIS) portal, how to pay tax online, and how to keep your accounts in order.

📅 Updated June 2026 · Year of assessment 2025/26 ⏱ ~9 min read 🏛 Based on Inland Revenue Department (IRD) guidance

1. What taxes does a private limited company pay in Sri Lanka?

A resident private limited (Pvt Ltd) company is taxed as a separate legal person. Depending on what you do and how much you earn, you may deal with several taxes — all administered by the Inland Revenue Department (IRD):

Tax	Who / when it applies	Headline rate (2025/26)
Corporate Income Tax (CIT)	On company profits, every year	30% standard
Value Added Tax (VAT)	If taxable turnover exceeds the threshold	18%
Social Security Contribution Levy (SSCL)	On liable turnover above the threshold	2.5%
Withholding Tax (WHT)	On certain payments (e.g. interest, some services, non-resident payments)	Varies
APIT (employee tax)	Deducted from staff salaries as an employer	Progressive
EPF / ETF	If you have employees	EPF 12%+8%, ETF 3%
Stamp Duty	On certain documents/instruments	Varies

For most new companies the big three to plan for are corporate income tax, VAT (once you grow past the threshold) and your employer obligations.

2. What is a TIN and how do I get one?

A TIN (Taxpayer Identification Number) is the unique number the IRD uses to identify your company. You cannot file or pay any tax without it — so this is step one after incorporation.

How to register for a company TIN

Go to the IRD e-Services portal at eservices.ird.gov.lk and choose Taxpayer Registration.

Select Company and enter your details — company name, date of incorporation and the Business Registration / Certificate of Incorporation number from the Registrar of Companies.

Upload the supporting documents (certificate of incorporation, Form 1/40/41, directors' NICs and proof of address) and submit.

The IRD usually processes online applications in 3–7 working days. You then receive your TIN plus a PIN used to activate and log in to e-Services.

💡 Tip: You can also register in person at the Taxpayer Services Unit at IRD Head Office, or call the IRD Call Centre on 1944 for help.

3. Corporate income tax rates (2025/26)

Income tax is charged on your taxable profit — broadly, accounting profit adjusted for tax rules (disallowed expenses added back, capital allowances deducted). The rate depends on your sector:

Business activity	CIT rate
Standard rate (most companies)	30%
Qualifying service exports (e.g. IT/BPO) — from 1 Apr 2025	15%
Certain manufacturing	18%
Liquor, tobacco, betting & gaming	40%

Small companies still pay the standard 30% rate — there is no separate "small company" rate, so accurate profit calculation and allowable deductions matter from day one.

4. When do I pay tax? (Deadlines)

Sri Lanka uses a self-assessment system: you estimate and pay your own tax in advance, in quarterly instalments, then reconcile when you file your return.

Year of assessment: 1 April to 31 March.
Quarterly instalments are generally due on or before 15 August, 15 November, 15 February and 15 May.
Final (balance) payment: any remaining tax for the year is due by 30 September following the year-end.
Income tax return: must be filed by 30 November following the year of assessment.

⚠️ The IRD updates exact dates each year through Public Notices (PN/IT). For example, the first 2025/26 instalment deadline was set at 15 August 2025 (Notice PN/IT/2025-03). Always confirm current dates on the official IRD Tax Calendar before paying.

5. How to access the IRD web portal (e-Services / RAMIS)

Almost everything is done online through IRD e-Services, the public face of the IRD's RAMIS system, at eservices.ird.gov.lk. Through it you can register, file returns, check your tax balance and transaction history, pay tax, request refunds, lodge objections and request a tax clearance certificate.

Logging in

Visit eservices.ird.gov.lk and click Login.

Enter your TIN and the PIN the IRD issued you. First-time users activate the account and set a password.

Authorise the company's directors or tax agent as users so they can file and pay on the company's behalf.

6. How to pay tax online

Yes — you can pay company tax online in Sri Lanka. The IRD does not take card payments directly on the portal; instead you generate a payment reference and pay through your bank:

Log in to e-Services and generate a Payment Voucher Number (PVN) for the correct tax type (e.g. Corporate Income Tax) and period.

Pay the amount through online banking, the LankaPay network, or at a participating bank branch, quoting the PVN.

The payment is automatically matched to your TIN and tax account. Keep the bank confirmation and check the credit appears in your e-Services ledger.

💡 Generate the PVN before the deadline — banks need the reference to route the money to the right tax account.

7. VAT & SSCL

VAT is charged at 18%. You must register for VAT once your taxable turnover exceeds the threshold — LKR 60 million per year (about LKR 15 million per quarter) in 2025/26. From 1 April 2026 this threshold drops to LKR 36 million, so more small companies will need to register. VAT-registered businesses charge VAT on sales (output VAT), reclaim VAT on purchases (input VAT) and file VAT returns regularly.

The Social Security Contribution Levy (SSCL) is charged at 2.5% on liable turnover above the threshold and is filed alongside your other indirect taxes.

8. Employer taxes (APIT, EPF, ETF)

The moment you hire staff, you take on monthly obligations:

APIT (Advance Personal Income Tax): deduct income tax from employees' pay at the progressive rates and remit it to the IRD.
EPF (Employees' Provident Fund): employer contributes 12% and the employee 8% of gross salary.
ETF (Employees' Trust Fund): employer contributes 3%.
WHT: you may also have to withhold tax on certain payments such as interest, rent, and fees to non-residents.

9. How to keep your accounts & bookkeeping

Good records aren't optional — they're a legal requirement and they make every tax deadline painless.

Companies Act No. 7 of 2007: every company must keep proper accounting records and prepare annual financial statements.
Audit: company financial statements must be audited by a member of CA Sri Lanka (the Institute of Chartered Accountants of Sri Lanka). Reporting follows SLFRS / LKAS standards.
Keep evidence: retain invoices, receipts, bank statements and payroll records to support every entry — the Inland Revenue Act requires records to be kept for the period the IRD specifies (generally several years).
Separate the company's money from your own, reconcile the bank monthly, and record income and expenses as they happen — not at year-end.

📒 Make it easy: TaxBook.lk lets you log income and expenses, attach receipts and invoices, and see a live Sri Lanka corporate-tax estimate — so your figures are ready when the deadline comes.

10. Penalties for non-compliance

Late registration, late filing and late payment all attract penalties and interest under the Inland Revenue Act, and persistent non-compliance can lead to assessments and recovery action. The cheapest tax strategy is simply to register early, keep clean records, and pay on time.

Frequently asked questions

What taxes does a private limited company pay in Sri Lanka?

Corporate Income Tax (standard 30%) on profits, VAT (18%) if turnover exceeds the threshold, the Social Security Contribution Levy (2.5%), plus employer obligations — APIT deducted from salaries, EPF (12% + 8%) and ETF (3%) — and WHT on certain payments.

What is the corporate income tax rate for 2025/26?

The standard rate is 30% of taxable profit. Concessionary rates apply to some sectors, e.g. 15% on qualifying service exports from 1 April 2025, 18% for certain manufacturing, and 40% for liquor, tobacco, betting and gaming.

How do I get a TIN for my company?

Apply on the IRD e-Services portal (eservices.ird.gov.lk) under Taxpayer Registration → Company, upload your certificate of incorporation and business registration details, and submit. It's usually issued within 3–7 working days, with a PIN to activate e-Services.

When is company income tax due?

The year of assessment is 1 April–31 March. Tax is paid in quarterly self-assessment instalments (generally by 15 Aug, 15 Nov, 15 Feb and 15 May), with the balance by 30 September and the return by 30 November. Confirm exact dates on the IRD Tax Calendar.

Can I pay company tax online?

Yes. Generate a Payment Voucher Number (PVN) in e-Services for the right tax and period, then pay via online banking, LankaPay or a bank branch quoting the PVN.

When must my company register for VAT?

When taxable turnover exceeds LKR 60 million per year (around LKR 15 million per quarter) in 2025/26 — dropping to LKR 36 million from 1 April 2026. The VAT rate is 18%.

Do I need an auditor?

Yes — company financial statements must be audited by a member of CA Sri Lanka and prepared under SLFRS/LKAS, as required by the Companies Act No. 7 of 2007.

What records do I need to keep, and for how long?

Keep proper accounting records and all supporting documents (invoices, receipts, bank and payroll records). The Inland Revenue Act requires you to retain them for the period the IRD specifies — generally several years.

Stay ready for every deadline

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