Employment income received from foreign employer (Table 08)
Tax Calculator w.e.f 01.04.2025
This table applies to resident employees who are physically present in Sri Lanka but work remotely for a foreign employer.
This table does not apply to independent service providers and freelancers, as their income is considered as business income.
Example:
Mr. Kasun Meedeniya is a software developer who was directly recruited and works remotely for a UK-based company. He stays in Sri Lanka and develops software based on instructions received from the foreign company. He receives a monthly remuneration of USD 6,000 and a bonus of USD 10,000 in the month of October. Foreign currency remittances (converted to Sri Lankan Rupees at CBSL buying rate) by the employer to his account and tax payments should be made as follows:
| Month (Y/A 2025/2026) | FC receipts (Converted to Rs.) | Cumulative Employment Income (Rs.) | Total Tax Liability (Rs.) | Payable for each month (due on or before 15th day of next month) (Rs.) |
| April | 1,794,000 | 1,794,000 | - | - |
| May | 1,806,000 | 3,600,000 | 3,600,000 * 15% - 360,000 = 180,000 | 180,000 - 0 = 180,000 |
| June | 1,728,000 | 5,328,000 | 5,328,000 * 15% - 360,000 = 439,200 | 439,200 – 180,000 = 259,200 |
| July | 1,710,000 | 7,038,000 | 7,038,000 * 15% - 360,000 = 695,700 | 695,700 - 439,200 = 256,500 |
| August | 1,776,000 | 8,814,000 | 8,814,000 * 15% - 360,000 = 962,100 | 962,100 – 695,700 = 266,400 |
| September | 1,800,000 | 10,614,000 | 10,614,000 * 15% - 360,000 =1,232,100 | 1,232,100 – 962,100 = 270,000 |
| October (with bonus) | 4,752,000 | 15,366,000 | 15,366,000 * 15% - 360,000 = 1,944,900 | 1,944,900 – 1,232,100 = 712,800 |
| November | 1,728,000 | 17,094,000 | 17,094,000 * 15% - 360,000 = 2,204,100 | 2,204,100 – 1,944,900 = 259,200 |
| December | 1,716,000 | 18,810,000 | 18,810,000 * 15% - 360,000 = 2,461,500 | 2,461,500 – 2,204,100 = 257,400 |
| January | 1,614,000 | 20,424,000 | 20,424,000 * 15% - 360,000 = 2,703,600 | 2,703,600 – 2,461,500 = 242,100 |
| February | 1,740,000 | 22,164,000 | 22,164,000 * 15% - 360,000 = 2,964,600 | 2,964,600 – 2,703,600 = 261,000 |
| March | 1,752,000 | 23,916,000 | 23,916,000 * 15% - 360,000 = 3,227,400 | 3,227,400 – 2,964,600 = 262,800 |
