Manage corporate tax of your company
This article aims to explain the basic income tax management requirements for companies in Sri Lanka. Every resident or non-resident limited liability company must file the Return of Income for the completed year of assessment with the Commissioner General within 8 months after the end of each year of assessment.
Year of assessment
Generally, the year of assessment in Sri Lanka is from April 1 to March 31 of the following year. This may be changed with the Commissioner General’s prior approval.
Tax rates
The current standard corporate income tax rate is 30% for all companies in Sri Lanka.
40% special tax rate is applicable for the below businesses,
- Companies conduct betting and gaming activities.
- Companies manufacturing, importing and trading of any liquor or tobacco product.
Tax payments
Each company needs to pay income tax quarterly on an estimated basis as per the due dates in the table below.
Quarterly tax payments should be made according to the Statement of Estimated Tax Payable.
Considering the tax year of assessment is 2024/2025 (April 01, 2024, to March 31, 2025)
| Tax payment | Quater end | Due date of payment | Payment period code |
|---|---|---|---|
| First | 30th June 24 | 15th Aug 24 | 24251 |
| Second | 30th Sep 24 | 15th Nov 24 | 24252 |
| Third | 31st Dec 24 | 15th Feb 25 | 24253 |
| Fourth | 31st Mar 25 | 15th May 25 | 24244 |
Statement of estimated tax payable
Each company needs to submit an estimated tax computation by August 15 each year. Companies can base this estimate on the previous year's tax computation or create a fresh estimate. If needed, companies can revise this estimate at any time during the year, submit a new estimate, and adjust the remaining tax payments accordingly.
Final tax payment
Companies need to prepare the full tax computation after the end of the assessment year.
Any final or remaining tax payments, after the estimated payments, must be made by November 30.
Considering the tax year of assessment is 2024/2025 (April 01, 2024, to March 31, 2025), the tax payment code for the final tax is 24250.
Tax payments can be made through below methods to any branch of the Bank of Ceylon,
- By deposit cash
- By deposit pay order or bank draft
- Using online tax payments platform (OTPP)
Final return of income (Corporate Income Tax Return/CIT Return)
Each company must file their return of income with the Commissioner-General within 8 months after the end of each assessment year. For example, the return of income for the year ending on March 31, 2024 (2023/2024), must be filed by November 30, 2024.
Companies need to submit the return using the e-filing facilities provided by the Inland Revenue Department at www.ird.gov.lk.
Audited financial statements of the company must be included as a mandatory attachment with the return of income.