Latest tax updates
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Evolution of Vehicle Import Duty in Sri Lanka and Its Impact on Prices
The Customs Import Duty (CID) applicable on motor vehicles in Sri Lanka has undergone several changes through a series of Gazette Notifications issued under the...
Proposed Changes to Individual Residency Rules: 2026 Amendment Bill
The residency rules for individuals in Sri Lanka are set to undergo significant changes under the Inland Revenue (Amendment) Bill of 2026. While the 183-day rule...
Understanding Individual Residency for Tax Purposes in Sri Lanka
Determining the residency status of an individual is a critical first step in establishing their tax liability in Sri Lanka. Under the Inland Revenue Act No. 24...
Why 15th May 2026 is So Important for Taxpayers
15th May 2026 is the final due date for the 4th quarterly self-assessment (SA) tax instalment payment for the Year of Assessment 2025/2026 under the Inland Revenue...
IRD Introduces National e-Invoicing System for VAT Registered Persons
Key Points Businesses Should Know Now The Inland Revenue Department (IRD) has issued Notice No. SEC/PN/VAT/2026-03 dated 04.05.2026 regarding the implementation...
Major VAT Changes Coming in 2026 – Are Your Business Systems Ready?
The Government of Sri Lanka has issued the Value Added Tax (Amendment) Bill on 29 April 2026, proposing significant changes to the VAT system. Important:This is...
SSCL on Motor Vehicles from 01.05.2026
Many taxpayers are confused about how the Social Security Contribution Levy (SSCL) applies to motor vehicles after the latest amendment w.ef 01.05.2026 . To understand...
SSCL Threshold Changes in Sri Lanka (2022–2026) – A Clear Timeline for Businesses
The Social Security Contribution Levy Act, No. 25 of 2022 introduced a registration-based levy system targeting businesses based on turnover. Over time, the threshold...
Taxation of Unit Trusts under Inland Revenue Bill 2026
What Investors and Fund Managers Must Know Unit trusts have become an increasingly popular investment vehicle in Sri Lanka, allowing individuals to pool funds and...
Proposed Amendments in Inland Revenue Bill 2026
The explanations provided below are based on the proposed changes contained in the Inland Revenue (Amendment) Bill, 2026. These changes reflect the amendments currently...
Tax Privilege Systems in Sri Lanka and Other Countries: How They Work and What Sri Lanka Can Improve
Many countries today use tax privilege and recognition systems to encourage taxpayers to comply voluntarily. Instead of depending only on penalties and audits, tax...
Colombo Port City Economic Commission (Amendment) Act, No. 1 of 2026 – Key Changes & Impact Summary
1. Employment Income Tax Exemptions Original Act (2021) The Act empowered the Commission to grant incentives to Businesses of Strategic Importance (BSIs), including:...
Social Security Contribution Levy (SSCL) – Key Changes Explained
The Social Security Contribution Levy (Amendment) Act, No. 24 of 2025 amends the Social Security Contribution Levy Act, No. 25 of 2022. This amendment mainly focuses...
From Crisis to Confidence: Key Insights from the 27th Annual Tax Oration of CA Sri Lanka
The CA Sri Lanka Annual Tax Oration is a significant professional event organised by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) through its...
Tax Expenditure Statement 2024/2025
The Ministry of Finance has released the Tax Expenditure Statement (TES) 2024/2025, reaffirming the Government’s commitment to fiscal transparency, accountability,...
Key Legislative Changes in the Colombo Port City Amendment Bill 2025
The below analysis is based on: Colombo Port City Economic Commission Act, No. 11 of 2021 and the 2025 Amendment Bill issued on 28th of November , 2025 . This Bill...
Rebuilding Sri Lanka Fund – Donations Qualify for Tax Deduction
Sri Lanka has officially launched the “Rebuilding Sri Lanka” Fund to support rebuilding efforts and help communities affected by recent disasters including floods...
How Foreign Service providers taxed in Sri Lanka
From 1 April 2025, foreign income earned by Sri Lankan residents is no longer fully exempt.This applies to: Foreign service income – services provided to a person...
Key Changes to the Strategic Development Projects Act-(Amendment Bill – 07.11.2025)
The Government has proposed several important changes to the Strategic Development Projects (SDP) Act, No. 14 of 2008 through the new Amendment Bill issued on 07...
Budget Highlights 2026
1: VAT and SSCL on Imported Coconut and Palm Oil The government will remove the existing Special Commodity Levy on imported coconut oil and palm oil and instead...
