Sri Lanka Tax Tables 2024 - Tax Rates and Thresholds in Sri Lanka
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This page contains the tax table information used for the calculation of tax and payroll deductions in Sri Lanka in 2024. These tax tables are used for the tax and payroll calculators published on iCalculator™ LK, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Sri Lanka or would like to add to or suggest amendments to the information herein then please contact us.
2024 Tax Tables [Quick Links]
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Sri Lanka Personal Income Tax Tables in 2024
The Income tax rates and personal allowances in Sri Lanka are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Sri Lanka Tax Calculator 2024.
Sri Lanka Residents Income Tax Tables in 2024
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 6% | Income from Rs 0.000.00 | to | Rs 500,000.00 |
| 12% | Income from Rs 500,000.01 | to | Rs 1,000,000.00 |
| 18% | Income from Rs 1,000,000.01 | to | Rs 1,500,000.00 |
| 24% | Income from Rs 1,500,000.01 | to | Rs 2,000,000.00 |
| 30% | Income from Rs 2,000,000.01 | to | Rs 2,500,000.00 |
| 36% | Income from Rs 2,500,000.01 | | and above |
Sri Lanka Non-residents Income Tax Tables in 2024
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 6% | Income from Rs 0.000.00 | to | Rs 500,000.00 |
| 12% | Income from Rs 500,000.01 | to | Rs 1,000,000.00 |
| 18% | Income from Rs 1,000,000.01 | to | Rs 1,500,000.00 |
| 24% | Income from Rs 1,500,000.01 | to | Rs 2,000,000.00 |
| 30% | Income from Rs 2,000,000.01 | to | Rs 2,500,000.00 |
| 36% | Income from Rs 2,500,000.01 | | and above |
In Sri Lanka, social security contributions made by employees, such as those to the Employees' Provident Fund (EPF) and the Employees' Trust Fund (ETF), are deductible from their gross income for the purpose of calculating taxable income. This means that these contributions can reduce the amount of income subject to personal income tax, thereby potentially lowering the overall tax liability for employees. This provision encourages participation in these social security schemes by offering a tax incentive, while simultaneously supporting the financial security of the workforce.
Sri Lanka Social Security and Payroll Deduction Rates in 2024
In Sri Lanka, the social security system includes several key components, funded by contributions from both employers and employees. These contributions are designed to provide financial support and benefits across various circumstances, ensuring a safety net for the workforce.
Sri Lanka Social Security in 2024: Rates for Employers and Employees| Category | Employee | Employer | Total |
|---|
| Employees Provident Fund (EPF) | 8% | 12% | 20% |
| Employees Trust Fund (ETF) | 0% | 3% | 3% |
| Social Security Family Allowance | 0% | 5.75% | 5.75% |
| Social Security (CNSS) Work Injury | 0% | 5% | 5% |
Sri Lanka Social Security and Payroll Deduction in 2024: Earnings Thresholds for Employers and Employees| Category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| Employees Provident Fund (EPF) | n/a | n/a | n/a | n/a |
| Employees Trust Fund (ETF) | n/a | n/a | n/a | n/a |
| Social Security Family Allowance | n/a | n/a | n/a | n/a |
| Social Security (CNSS) Work Injury | n/a | n/a | n/a | n/a |
Employees' Provident Fund (EPF): This is a retirement benefit scheme for employees. Contributions are made by both the employee and the employer, and the fund accumulates until retirement, providing a lump sum payment to the employee.
Employees' Trust Fund (ETF): The ETF is another savings scheme, primarily funded by the employer, designed to provide financial security and benefits to employees. It complements the EPF by offering additional financial benefits upon retirement or earlier under specific conditions.
Department of Labour - Social Security Benefits: Contributions fund benefits for work-related injuries and maternity leave. This includes compensation for employment injuries and financial support for female employees during maternity leave, ensuring workers are protected during these times.
These social security and payroll deduction schemes play a crucial role in safeguarding the welfare of Sri Lanka's workforce. By mandating contributions from both employers and employees, the system promotes shared responsibility towards the social and financial well-being of employees, enhancing the country’s social welfare framework.
Sri Lanka VAT Rates in 2024
VAT rates for Sri Lanka are reviewed annually, you can use the VAT Calculator to calculate VAT due in Sri Lanka or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Sri Lanka VAT Rates| VAT Rate | VAT Description |
|---|
| 18% | Standard Rate |
Sri Lanka's government has sanctioned an additional 3% hike in the VAT rate, elevating it from 15% to 18%, effective from 1 January 2024. This adjustment aims to bolster the government's ability to meet its revenue objectives and secure subsequent International Monetary Fund (IMF) loan agreements. Despite a significant uptick in tax revenue this year, the amounts collected have fallen short of the benchmarks established by the IMF. Concurrently, the government plans to eliminate several tax exemptions.
This recent enhancement follows two urgent VAT rate increases implemented in 2022.
Historic Tax Tables supported for Sri Lanka
The following tax tables are supported by iCalculator™ LK as part of the suite of free tax tools we provide for Sri Lanka.