Sri Lanka Tax

For the period commencing from 1 January 2020 to 31 March 2020, income tax is levied on employment income and income received from Sri-Lankan sources at the following progressive rates, depending on the aggregate of income earned subject to a tax-free allowance of LKR750,000 for this period (foreign national employees working in Sri Lanka are not entitled to this tax-free allowance):

• Cumulative employment income of up to LKR750,000: exempt.
• Cumulative employment income of between LKR750,001 and up to LKR1,500,000: taxed at a rate of 6%.
• Cumulative employment income of between LKR1,500,001 and up to LKR2,250,000: taxed at a rate of 12%.
• Cumulative employment income of LKR2,250,001 and above: taxed at a rate of 18%.