Tax Advisory Services

Tax on gain shall be tax in Sri Lanka with effect from 1st April 2018 at a rate of 10% and such payment shall be paid to the Department of Inland Revenue within 30 days with Return of Capital gain.

I want to consult on Capital Gain

Tax shall be withheld by withholding agent or employer at the time of payment is made on employment income, investment returns and service fees & contract payments and amount deducted shall be remitted to the Department of Inland Revenue on or before 15th of following month and it is the duty of the agent to issue withholding tax certificate within one month to the withholdee other than to employee. Employee is entitling to withholding tax certificate within one month from the end of the year of assessment.

I want to consult on Widthholding Tax

Employer is required to withhold to relevant part of withholding tax (PAYE) in accordance with guild lines issued by the Commissioner General of Inland Revenue on cash and non-cash benefits of each employee. Employee is required to furnish return of income if he has income any other income other than employment income.

I want to consult of PAYE Tax

Payment of tax by quarterly instalment
(a) in the case of a person whose year of assessment is a twelve month period ending on the thirty first day of March, on or before the fifteenth day respectively of August, November and February in that year of assessment and the fifteenth day of May of the next succeeding year of assessment; or

(b) in any other case, on or before the fifteenth day after each three-month period commencing at the beginning of each year of assessment and a final instalment on or before the fifteenth day after the end of each year of assessment, unless it coincides with the end of one of the three-month periods.

(a) Any registered person whose taxable supplies consist of any supplies other than the supply of goods manufactured in Sri Lanka by such manufacturer, the tax in respect of any taxable period on or after January 1, 2013 shall be paid :—
(i) For the period from the 1st day to the 15th day of any month on or before the end of that month; and
(ii) For the period from the 16th day to the end of the month on or before the 15th day of the subsequent month.

(b) Manufacturer
(i) The tax payable for the first month of the taxable period, shall be paid not later than the twentieth day of the second month of the taxable period;
(ii) The tax payable for the second month of the taxable period shall be paid not late than the twentieth day of the third month of the taxable period;
(iii) The tax payable for the taxable period after deducting there from the amount under above shall be paid not later than the twentieth day of the month following the end of that taxable period.

(i) The tax payable for the first month of that quarter on or before the twentieth day of the second month of that quarter;

(ii) The tax payable for the second month of that quarter on or before the twentieth day of the third month of that quarter;

(iii) The balance tax payable for that quarter on or before the twentieth day of the month immediately succeeding the end of the relevant quarter, calculated by deducting the tax paid under paragraphs (i) and (ii) from the tax payable for that quarter.

The service charge which any person or partnership is chargeable with for any relevant quarter shall, notwithstanding that no assessment has been made on such person or partnership by an Assessor, be paid to the Commissioner-General on or before the twentieth day of the month immediately succeeding the end of that relevant quarter.

Statement of estimated tax payable
Every person who is an instalment payer for a year of assessment shall file with the Commissioner-General by the date for payment of the first tax instalment an estimate of tax payable for the year.

Return on Income (Income Tax Return)
Every person shall file with the Commissioner-General not later than eight months after the end of each year of assessment (on or before 30th November) a return of income for the year.

I want to file Income tax Returns

Every registered person shall furnish to the Commissioner-General for any taxable period commencing on or after January 1, 2013 not later than the last day of the month after the expiry of each taxable period.

I want to file VAT tax Returns

Every registered person shall furnish to the Commissioner-General for any taxable period not later than the twentieth day of the month after the expiry of each taxable period

I want to file NBT Returns

Default assessments
Where a taxpayer has failed to file a tax return for a tax period, the Assistant Commissioner of Inland Revenue may, based on such evidence as may be available and to the best of his or her judgement, make an assessment of the tax (including a nil amount) payable by the taxpayer for the period.

Advance assessments
The Assistant Commissioner may, based on such evidence as may be available and to the best of his judgement, make an assessment (“advance assessment”) of the tax payable by a taxpayer for a tax period.

I Want Consult on Income Tax Assessment

Where -
(a) any registered person who in the opinion of the Assessor is chargeable with tax, fails to furnish a return for any taxable period; or

(b) any registered person, who is chargeable with tax, furnishes a return in respect of any taxable period but fails to pay the tax for that taxable period; or

(c) any person requests the Commissioner-General in writing to make any alteration or addition to any return furnished by such person for any taxable period,

the Assistant Commissioner shall assess the amount of the tax, which such person, in the judgment of the Assessor, ought to have paid for that taxable period and shall, by notice in writing, require such person to pay such amount forthwith. The amount so assessed in respect of any person for a taxable period shall, be deemed to be the amount of the tax payable by him for that taxable period.

I want Consultation on VAT/NBT assessment

Administrative Review
A taxpayer who is dissatisfied with an assessment or other decision may request the Commissioner General to review the decision.

Appeal from Administrative Review
A person aggrieved by the decision of administrative review may appeal against the decision to the Tax Appeals Commission.

I Want Consultation on Income Tax Appeal




Any registered person may, if he is dissatisfied with any assessment or additional assessment made in respect of him by an Assistant Commissioner, or a penalty imposed, appeal against such assessment, additional assessment or penalty, as the case may be, to the Commissioner-General within thirty days after the service of notice of such assessment, additional assessment or imposition of penalty as the case may be.

I Want to Consult on VAT/NBT/ESC Appeal

Commissioner General may issue directions to the withholding agent with respect of service fee and tax payers too may issue directions to Banks or financial institutions on interest income

I want service for a Direction

A taxpayer engaged in business or investment activity or required the Act to make a return shall keep and maintain in Sri Lanka records and accounts sufficient to record all transactions and to ascertain the gains and profits made or the loss incurred in respect of those transactions.

The circumstances under which a person engaged in business or investment activity shall have accounts prepared by an approved accountant and the form by which an approved accountant shall attest to the accuracy and completeness of the accounts prepared shall be prescribed by regulations.

I want service of approved Accountant



Every registered person shall keep and maintain records in respect of the taxable activity carried on or carried out by him to enable the Commissioner-General or any other officer authorised by the Commissioner-General or that behalf to ascertain the liability for the payment of the tax.

The form of the records (books of account, whether contained in a manual, mechanical or electronic format or combination thereof, recording receipts or payments or income or expenditure and also includes vouchers, bank statements, invoice, tax invoices, tax credit notes, tax debit notes, receipts and such other documents as are necessary to verify the entries in any such books of account, details of any warehouse, go-down or any other place where stock of goods are kept and the stock of goods kept in such warehouses, go-down, or any other place, as the case may be, any list or record required to be maintained or kept in accordance with the provisions of the VAT Act or under any regulations made) to be maintained has been prescribed.

I Want Consultation on Record Keeping