How to File the APIT Return for the 2024/25 Tax Year in Sri Lanka

The Advance Personal Income Tax (APIT) return for the 2024/25 tax year is due soon, and employers must ensure they file it correctly and on time. This guide walks you through everything you need to know about filing the APIT return for the tax year April 1, 2024 – March 31, 2025.

Who Needs to File the APIT Return?

Any employer who deducted APIT from employees’ salaries during the 2024/25 tax year must file an Annual Statement of Employer (APIT Return) with the Inland Revenue Department (IRD).

If your business paid salaries and deducted APIT, you must submit this return, even if some months had no tax deducted.

APIT Filing Deadline for 2024/25

Deadline to file the APIT return: April 30, 2025
Late filing penalties: Failure to submit on time may result in fines or penalties imposed by the IRD.

Documents & Information Needed for Filing

Before you start the filing process, ensure you have:

Employer Taxpayer Identification Number (TIN)
Full list of employees and their TINs (if registered with IRD)
Total taxable salary paid to each employee during the tax year
Total APIT deducted per employee for 2024/25
Monthly APIT payments made and IRD payment references

How to File the APIT Return for 2024/25

The APIT return must be submitted electronically via the IRD’s e-Services portal.

Step 1: Log in to IRD’s e-Services Portal

Go to www.ird.gov.lk
Click on e-Services Login
Enter your Taxpayer Identification Number (TIN) and password

Step 2: Navigate to the APIT Return Section

Select Employer Tax Filings
Choose APIT Annual Return for 2024/25

Step 3: Enter Salary & Tax Data

Employee-wise breakdown: Enter total taxable salaries and total APIT deducted for each employee.
APIT Payment Details: Ensure the total tax deducted matches the monthly payments you made to the IRD.

Step 4: Verify & Submit

Review all entries carefully before submitting.
Once submitted, you will receive a Submission Reference Number as proof of filing.

Key Considerations for the 2024/25 APIT Return

✅ Reconciliation: Ensure that your monthly APIT payments match the total tax deducted as per the return. Discrepancies could trigger audits or penalties.

✅ Employee Tax Certificates: Provide employees with tax deduction summaries if needed for their records.

✅ Late Filing Risks: Late filing can lead to penalties, interest charges, and compliance issues with the IRD.

What Happens After Filing?

The IRD will process the return and verify the submitted data.
If any discrepancies are found, they may request additional clarification or corrections.
If all data matches, the return is considered successfully filed.

APIT Changes Effective from April 1, 2025

🚨 Important: Starting from April 1, 2025, the APIT tax-free threshold will increase to LKR 150,000 per month. The tax brackets will also change, reducing tax liability for many employees. Ensure your payroll system is updated for salaries paid after April 1, 2025.

Read the full guide on APIT tax changes here: Biz Advisor Blog - APIT Changes 2025

Final Reminder: File APIT for 2024/25 Before April 30, 2025!

Employers must complete their APIT return for the 2024/25 tax year by April 30, 2025, to remain compliant with Sri Lanka’s tax regulations.

For assistance with APIT filing, contact Biz Advisor’s tax professionals today! 🚀