A)                Individual Income tax

Income tax is charged on every person (residents and non-residents) on profits and income. Residents are charged on their global income while non-residents are charged on income arising in or derived from Sri Lanka. Income tax is charged for a year of assessment which is a period of 12 months commencing on April 1 in any year to March 31 of the following year. 
Sri Lanka has a self-assessment regime for income tax payments. Accordingly, any person liable to income tax is required to compute his/her tax liability and remit such tax in four quarterly instalments. The due dates of quarterly instalments are: first quarter – on or before August 15 of that year; second quarter – on or before November 15 of that year; third quarter – on or before February 15 of the next year; fourth quarter – on or before May 15 of the next year.

·         Tax free allowance for residents/non - resident citizens of Sri Lanka is Rs. 500,000/-

·         Additional allowance by way of qualifying payment (maximu​​m) of Rs.250, 000 is granted on employment income. (Maximum tax rate applicable 16%) 

Tax rates for Professionals (providing professional services)