SRI LANKA INLAND REVENUE 2009 / 2010
P.A.Y.E. INCOME TAX TABLES
Applicable with effect from 01.04.2009
TAXES - FOR A BETTER FUTURE
INCOME TAX TABLES
.Y.E.2009 / 2010
S. No. Angammana Commissioner General of Inland Revenue
03. 10 of 2006. S. for the purpose of deduction in terms of section 114 of that Act. 2009. I.2009
. I specify such income tax tables for every subsequent year of assessment unless other tables are specified for such subsequent years. Angammana. Commissioner General of Inland Revenue do hereby
specify the income tax tables set out in this publication.03. for the year of assessment commencing on April 1.By virtue of powers vested in me under section 116 of the Inland Revenue Act.
Tax Table No.A.7
Rate for the deduction of tax from the remuneration of a Chairman or a Director or a non-executive Director of a Company. Tax Table No.Y.
Deduction of Tax from Once-and-for-all-payments Rates for the deduction of tax from payments made to Non-citizen Employees in Sri Lanka
< Tax Table No.2
Monthly Tax Deductions from Regular profits
Rates for deductions of tax from Lump-sum-payments
Tax Table No.5 .
.Y.E payroll. not included in the P.SRI LANKA INLAND REVENUE
P.1 . INCOME TAX TABLES AND INSTRUCTIONS FOR THEIR USE APPLICABLE WITH EFFECT FROM 01. Tax Table No.A.6
Annual Tax Table Tax on Tax Rates
Table No. Tax Table No.
iii. 120 (b). the tax referred to in the table 6 should be paid in addition to the tax referred to in the tables 1. i ii When an employer or any other person settles income tax of an employee. iv. in case of a failure for recover and/or remit the tax. not later than the 15th day of the month immediately following.1.
Please note that in the following circumstances. no tax table given here is applicable.
The Employers are required to :
Keep in safe custody the documents relating to every payment made to employees. (Sec.
3. a penalty of an amount not exceeding 50% of the tax. Remit to the Commissioner General every PAYE deduction made during a month. without it being deducted from his salary. (Sec.
. vi. Forward Annual Returns to the Commissioner General not later than 30th April every year. Please contact the Deputy Commissioner PAYE or Secretariat. (Sec. (Sec.4 and 5.
i. v.2. Whenever officers authorized by the Commissioner General call for inspection such documents should be made available to them. 120(a).
2. 124 (1). Issue to all employees the certificate of tax deduction on T 10. Employers who fail to do so would be held personally liable to pay such amount. Be held responsible for recovery and/or remittance of taxes. Pay in addition to the tax. before the expiry of the 30th day of April of the month immediately following. 120 (d). 119) ii. or if the employer requires any further clarification. or Reimbursement (by the employer) of income tax already deducted and paid from employee’s salary. 9 Sec. if it appears that in relation to any payment made to an employee.
184 but not exceeding Rs.
Monthly remuneration exceeding Rs. 214. 256.
Monthly remuneration exceeding Rs.
04.250 9. 78.
Monthly remuneration exceeding Rs. 63.
2. telephone bills and entertainment. commission.250
.per month) and.000/. 16. 131. 131.000/-.
Summarized Tax Table .250 25% of monthly remuneration less Rs. the following deductions have already been made: (i) 8% from gross regular profits as contribution to an approved Provident fund. salary.6% of monthly remuneration less Rs. 25.917 but not exceeding Rs. any such payment or benefit provided by the employer to a member of the family or any other person. traveling allowances and other allowances.917
8. (ii) Rs. pension or such other profits from employment that arise or accrue in such pay period.then make tax deduction commencing from that month. insurance policies.250 but not exceeding Rs. profits as described in paragraph 2) is less than Rs.TAX TABLE NO.917 but not exceeding Rs.250
4. 300. 256.Regular Profits from Employment
Monthly remuneration Tax Exempt 4.000/.
05. (ii) Payment on housing.125 but not exceeding Rs.
Unless a direction is issued by the commissioner General of any officer authorized by him.625 35% of monthly remuneration less Rs.
Monthly remuneration up to Rs.896 30% of monthly remuneration less Rs. 4.Please apply Table No. etc. 97.per month as personal allowance. 63. to deduct tax from lump-sum-payments. 97. in every case. electricity.
As regards any employee whose: (a) total monthly regular profits from employment (i. 214.792 15% of monthly remuneration less Rs.437
1.e. 48. 24. 6.167 10% of monthly remuneration less Rs. no deduction should be made from the profits from employment to apply this Table. 9. (iii) 03. Regular profits from employment include : (i) Wages. (subject to a maximum of Rs. in accordance with Tax Table No.584 but not exceeding Rs. conveyance. 1
Monthly Tax Deductions from Regular Profits (All employees other than those non-citizen employees to whom Tax Table 4 applies)
01. Note :. 4. 1.250
3. medical bills.
Monthly remuneration exceeding Rs.917
5. overtime pay. Please apply this Table to deduct tax from regular profits from employment paid to every employee during a calendar month. 172.2% of monthly remuneration less Rs. 172. fees.
Monthly remuneration exceeding Rs. 5.
Monthly remuneration exceeding Rs. 25.
Monthly remuneration exceeding Rs. but (b) cumulative regular profits up to any moth during the year of assessment exceeds Rs.
In computing the Tax Table.184 Monthly remuneration exceeding Rs.687 20% of monthly remuneration less Rs.406 but not exceeding Rs. 27.250/. 78.
000. His regular profits from employment for that month is Rs. on any lump-sum-payment made previously during the year of assessment and ascertain the net tax payable on lump-sum-payments being made now. 34. (iii) Ascertain the tax by application of this rate per centum on the total lump-sum-payments (including any lumpsum-payment made previously during the year of assessment). the rate applicable to bonus is 5% Tax on Bonus = 38. 314
The deduction in April in respect of Rs. Leave encashment etc. Similarly.000 (according to Table No. Bonus. 3000 (approximately).900 2.000 Under M 1 part of the Table. His basic monthly salary is Rs. numbered from “M ½” to “M 12”. “M 3½” is the part that applies if the amount of lump sum payments is 3½ times of that average and.000 = 1. 34. 02. Follow the following steps to compute the tax on Lump-sum-payments. in relation to an employee: (i) Divide the amount of lump-sum-payments (including any lump-sum-payments made previously during the year) by the average profits from employment to ascertain to the nearest half. Then select the relevant part of Tax Table. (ii) Find from that part of the Table. This Table No.5 (or 1.000 (32. 2 comprises 24 parts. what multiple of the average. (iv) Deduct from the tax so ascertained. M ½ is the part that applies if the amount of lump sum payments is ½ times the average monthly profits from employment. generally paid annually are considered as Lump-sum-payments. Eg: If the multiple is 1. Silva receives a bonus of Rs.08 35. 2 Rates for the Deduction of Tax from Lump-sum Payments
How to use this table: 01.214
. 32. 38.000 and the monthly average of allowances and the other benefits (liable to tax) is Rs.TAX TABLE No. so on. the rate per centum corresponding to average profits from employment (excluding lump-sum-payments).000) The amount of Bonus is 1. if any. the tax paid.) then the relevant part is Part “M 1½”.000 x 5% Total tax deductible in April 2009
1. 03. the amount of lump-sum-payments is. Rs.000 + 3.e. 1) Average regular profits from employment 35.08 times of average regular profits (i. approximately 1 times the average monthly profits from employment) 38.3 etc.. Example: Mr.000 in April 2009.
000. The Tax Table (i. or (ii) Where the payment is made out of a fund.1987). the profits from employment including any once – and – for – all payments of its employees are exempt from income tax.Employee’s Contribution + Share of investment income after 31.
.. or The product of average monthly salary for the last three years and the number of completed years of service.03. is uniformly applicable to all the employees.. over this ceiling.03. 2. if the employer had paid tax at 15% on such contributions and interest + Share of investment income after 31. 2 on the excess.1987 Balance (e) …………. made to any retiring employee.
Any sum payable as compensation for loss of office or employment (excluding any such sum referred to in Note (i))
Compensation for loss of office or employment not exceeding Rs.800. Table No.e.03. 3) is applied to the payment so reduced. …………. The balance (computed as given below) paid from a Provident Fund approved by the Commissioner-General Gross sum payable Less:. after 31.1987 …………. …………. in accordance with a scheme approved by the Commissioner of labour .03.
………….Employee’s Contribution + Employer’s Contribution up to 31. should be reduced in the ratio of the period of service of such employee (with such employer) up to 31. No deduction of tax should therefore be made from such employees:
Where the employer is any other public corporation.TAX TABLE NO.03. which ever is higher. ………….
Where the employer is a public corporation which pays the emoluments of its employees wholly or partly out of the sums voted annually by the Parliament from the Consolidated Fund. ……………
Balance (d) The balance (computed as given below) paid from a regulated Provident Fund:
Gross sum payable Less:. (b) (c) Any sum paid in commutation of pension.
The rate of the deduction depends on : (i) Where the employer makes the payment whether the scheme in accordance with which the payment is made. A Scheme is uniformly applicable where the Commissioner – General of the opinion that it is uniformly applicable. …………. Employees are requested to obtain the concurrence of the Commissioner – General before conceding this exemption.1997 to the total period of service of such employee with such employer.1968 and the interest thereon. The amounts of the One-and-for-All Payments to which this table applies are: (a) Retiring gratuity up to a ceiling of: (i) (ii) Rs. whether the employer has contributed to the fund in accordance with a scheme which is uniformly applicable to all the employees. 3 Rates for the Deduction of Tax from Once-and-for-All Payments (Terminal Benefits) (All Employees)
01.000. 1.000 consequent to: (a) (b) the voluntary retirement under a scheme which is uniformly applicable to all the employees: or the retrenchment by the employer. if any.is exempt from income tax.
02. each of the amounts referred to in (a) to (f) in Paragraph 01 above. ========
Any sum payable from the Employees Trust Fund (ETF) (excluding the share of Investment income of the fund. Please apply Tax Table No.
(b). 1. Peoples Bank. if the amount of any such “balance” (as computed in accordance with subparagraph (c) or (d) of paragraph 01) does not exceed (a). Rs. (b). please leave the space blank. Please do not write your Taxpayer Identification Number (TIN) in the space provided for it on the paying – in slip. 1. deduct 35% of the amount computed in accordance with para 01. 3. (ii) As regards any other amount (i.000.
4. the full amount whether or not it exceeds above limits.500.e. On receipt of the Direction.and – for – All Payment” in the space provided for “Type of Tax”.000 where the period of service or contribution is equal to or more than 20 years. If you do not receive a Direction before the expiry of 90 days from the date of deduction and if you are not advised otherwise please remit the deductions to the Commissioner – General to the credit of Account No. is subject to tax deduction at the respective rates of 20% or 35%. any amount referred to in (a). 750. Union Place branch. deduct 20% of the amount computed in accordance with para 01.for – all payments. Rs.
Where the scheme is not uniformly applicable and if .
In the case of uniform scheme once – and.
Please retain with you the deductions made and advise your retiring employee to obtain a Direction from the PAYE branch. (a) Rs. please write “Tax on Once .
03. a) The payment is compensation for loss of office or employment.000 where the period of service (or contribution) is equal to or more than 20 years.500.
.000 where the period of service or contribution is less than 20 years. deduction should not be made in the following situations: (i) As regards Provident Funds. Instead. (e) or (f) of paragraph 01). (b) Rs.
In the circumstances referred to in para 02(b) (ii)(ie non uniform scheme payment).000 where the period of service or contribution is less than 20 years. deduct 10% of the amount computed in accordance with par 01. if such amount does not exceed.(b)
Where the scheme (of payment or contribution) is uniformly applicable. please comply with it. 2. b) The payment is other than compensation for loss of office or employment. as the case may be.
30% of monthly remuneration less Rs.15000 .35% of monthly remuneration less Rs.147917 exceeding Rs. 2.6 of monthly remuneration .225000 Tax .35% of monthly remuneration less Rs. and not subsequently absent from Sri Lanka for an unbroken period of one year (subject to 30 days concession)].183333 exceeding Rs. up to Rs.91667 exceeding Rs.25% of monthly remuneration less Rs.141667 but not exceeding Rs. 3. 2.13.91667 but not exceeding Rs. Tax table applicable for tax deduction from any non-citizen employee to be in Sri Lanka for less than 2 consecutive years and who is present in Sri Lanka during the year of assessment for less than 183 days and from whose remuneration.20% of monthly remuneration less Rs.25000but not exceeding Rs. 3.208333 exceeding Rs. Tax Tables applicable to deduct tax from monthly remuneration of non-citizen employees in special circumstances: i.46250 Tax
. up to Rs.
Tax Tables applicable for tax deduction from any non-citizen employee to be in Sri Lanka for less than 2 consecutive years and who is present in Sri Lanka during the year of assessment for less than 183 days and from whose remuneration a deduction for provident fund is made.15% of monthly remuneration less Rs.18646 . 6.125000 exceeding Rs.25% of monthly remuneration less Rs.72464 but not exceeding Rs.8% of monthly remuneration less Rs.04.1250 .189583 exceeding Rs.30% of monthly remuneration less Rs.10% of monthly remuneration less Rs. The normal tax tables (Tax table 1. and 6) or applicable for deduction of tax under PAYE from non-citizen employees as well if they are resident of Sri Lanka under the provision of Inland Revenue Act general provisions of the Act except under special circumstances.1667 .231250 above Rs.5% of monthly remuneration less Rs.39688
iii. (On or after 01.106250 exceeding Rs.17083 . 8. 7.4167 . a deduction for provident fund is made.36232 exceeding Rs. OR treated as resident in Sri Lanka for not less than two consecutive years of assessment.26250 .189583 but not exceeding Rs. any non-citizen employee will not be nonresident under section 79(7).166667 but not exceeding Rs.100000 exceeding Rs.225000 above Rs. 3.30% of monthly remuneration less Rs. 4.11250 .2% of monthly remuneration less Rs.2008.125000 but not exceeding Rs.15% of monthly remuneration less Rs.106250 but not exceeding Rs. 7. up to Rs.20% of monthly remuneration less Rs. 4 Deduction of tax from remuneration made to non-citizen employees
1.23333 .166667 exceeding Rs. and from whose remuneration.4.141667 exceeding Rs.58333 exceeding Rs. 2. Monthly Remuneration 1.8750 . 3.33750 .36232 but not exceeding Rs. 4.147917 but not exceeding Rs.20% of monthly remuneration less Rs.66667 exceeding Rs. Monthly Remuneration 1. 5.28125 .58333 but not exceeding Rs.78125 but not exceeding Rs.5% of monthly remuneration .72464 exceeding Rs.33333 but not exceeding Rs. 2.15% of monthly remuneration less Rs. 6.78125 exceeding Rs. 8.5938 .66667 but not exceeding Rs.10% of monthly remuneration less Rs.10000 . 4.183333 but not exceeding Rs. 2.Nil . 7.9. 5. deduction for any provident fund is not made.25000 exceeding Rs. physically present in Sri Lanka for 183 days or more during the year of assessment.TAX TABLE NO. Tax table applicable for tax deduction from any non-citizen employee.250000 above Rs. 6. 5. resident in Sri Lanka [ie.250000 .1667 .231250 Tax .5000 .5000 .208333 but not exceeding Rs.100000 but not exceeding Rs.25% of monthly remuneration less Rs. 5. Monthly Remuneration 1.35% of monthly remuneration less Rs.33333 exceeding Rs.
25.872 312 1. 33. deductions should be made in accordance with the Table No. 300.560
Gross Employment income from April 2009 to March 2010 Tax on Rs.690 since February 2010. 5 Annual Tax Table
How to use this table:
01. Thereafter tax deduction should be made monthly till the end of the year of assessment.000. 03. 3 where relevant.030 Tax Charged in January & February (Deducted) Tax chargeable in March
400. His Gross regular profits from employment for the period from April 2009 to January 2010 Rs.872 1.650 312
Gross Employment income from April 2009 to February 2010 Tax on Rs. using this table.000 but cumulative profits from employment up to any month in the year of assessment exceed Rs. Tax deductions should be made as follows: 2010 January
Gross Employment income from April 2009 to January 2010 Tax chargable in January
332.000. 300.650. 04.340 Tax Charged in January (Deducted) Tax chargeble in February
366. 25.408 1. In respect of all lump-sum payments or once-and-for-all payments. Please apply this table in respect of employees whose monthly regular profits from employment is generally below Rs. Tax deduction should start from the month in which the cumulative profits up to that month exceed Rs. Silva is an employee of a private institution and his monthly regular profits from employment is generally less than Rs.536
.030 3.340 1. 400. 366.TAX TABLE NO. 332. 2 or Table No.000 due to payment of higher remuneration in certain months (instance where the monthly Tax Table should not be applied) 02. His remuneration is Rs.
Use the part I.85% )
Rate of tax on tax in respect of Sri Lankan employees and non-citizen employees who have exceeded the five year period. 5313 tax = Tax on tax at 4285% of Rs.26% 11% 17. Tax on Tax at 17. Y was employed in Sri Lanka on 01. without it being deducted from his salary. He was paid with bonus of Rs. to compute the tax on tax in respect of monthly remuneration.000 in April.Tax Table No.3) 100 Add. 100. X was employed in Sri Lanka on 01.251 and above
.65% 25% 33. Example (2) Expatriate Mr.65% of Rs. 100.2003.751 1.04. (i) When an employer or any other person settles income tax of an employee. 55000 tax Total income tax payable for April 2009 = 938 23567 = 24505 84818 = 55000 5313
(tax on tax rate applicable to Lump-sum payments which includes the rate per centum of 27. Computation of tax is as follows: Tax on monthly gross salary of Rs. His gross salary for April 2009 is 100. which is 2 months salary.668 5.750 41. Employer has undertaken to pay his tax without deducting it from his salary.2003. to compute the tax on tax in relation to lump-sum payments.001 10.333 28.000 under tax table M2 (2000000 x 27.000 5313 928 6251
Total income tax payable for April 2009
Use part II.000 10. Determine the tax on tax by the application of the relevant rate percentage on the monthly tax under tax table 01. Monthly Tax Rs. (ii) (2) Reimbursement by the employer of Income Tax already deducted and paid from employee's salary. 01 1. 200.
100.667 5.85% 53. Compute the tax on tax using the rate per centum applicable on the basis of tax computed under tax table 2.85%
Expatriate Mr.65% of Rs. His gross salary for April 2009 is Rs.000 according to tax table 01 tax on bonus of Rs. 100. 200.000 18.000.000 for April 2009 Add. Computation of tax is as follows:Rs.334 28. Tax payable on Rs. Employer has undertaken to pay his tax without deducting it from his salary.000/-.250 Tax on Tax Rate
5. 6 Tax on Tax Rates
(1) Instances where tax on tax arise.001 18.5 computed on 55000 tax = 42. Tax on tax at 17.04.33% 42.
Tax on Tax on Lump-sum-payments (e.33% 42.5%
5% 10% 15% 20% 25% 30%
5.5% 10.5% 25.85% 53.65% 25% 33. Bonus etc.)
Rate per centum applicable to lump-sum-payment From To
Tax on Tax Rate
.g.5% 30.0% 5.26% 11% 17.5% 15.5% 20.
Tax Table No. not included in the P.E payroll
Rate for the deduction of tax from the remuneration of a Chairman or a Director or a non-executive Director of a Company.A.Y.