How to register for SSCL when your turnover crosses Rs 9 million

Last verified against the primary sources on 15 October 2026.

SSCL registration turns on three questions: has your turnover crossed the line, how much of it is liable, and by when must you act? From 1 July 2026 the line is lower. A business whose aggregate turnover for a quarter exceeds or is likely to exceed Rs 9 million, or whose turnover for four consecutive quarters exceeds or is likely to exceed Rs 36 million, must apply for Social Security Contribution Levy registration within 15 days [1] [2]. The rate stays at 2.5 percent of liable turnover [3]. The Social Security Contribution Levy (Amendment) Act, No. 10 of 2026, certified on 9 April 2026, replaced the old Rs 15 million and Rs 60 million tests for periods from 1 July 2026, and the Inland Revenue Department (IRD) confirmed the change in Notice PN/SSCL/2026-04/1 of 16 April 2026 [1] [2].

Take a hypothetical architecture practice in Kandy. In the quarter from 1 July to 30 September 2026 its invoices total Rs 9.4 million, and it has no exempt supplies. It must apply within 15 days of the date its turnover exceeds, or is likely to exceed, Rs 9 million. If its forecast on 1 July already showed Rs 9.4 million for the quarter, the "likely to exceed" limb applies from the start. Once registered, it pays the levy month by month, each month by the 20th of the following month, and files a quarterly return [3] [7].

This guide covers the registration trigger, liable turnover, the form, the 15 days, payment and returns, and the records to keep. It does not cover the motor vehicle changes that took effect on 1 May 2026, the full list of exempt articles in the First Schedule, or the financial services computation.

Step 1. Confirm the threshold has been crossed

What to do. Add up the turnover of every taxable activity for the current quarter, and for the four consecutive quarters ending with it. Compare the totals with Rs 9 million for the quarter and Rs 36 million for four quarters. Either test is enough. The test is "exceeds or likely to exceed", so look forward as well as back: a signed contract or a firm forecast that will take the quarter past Rs 9 million counts [1]. A person who only imports articles is outside this registration rule; the notice states the threshold applies to every taxable person "other than a person who imports any article" [2].

Where. Your own books, or the sales ledger that will later support the SSCL return.

What you need. Invoices, credit notes, a list of any exempt supplies, and a running total by month so you can show the date the line was crossed.

What goes wrong. Using the old Rs 15 million and Rs 60 million figures. The IRD's SSCL web page still showed them on 15 October 2026, with "Last updated: 27-01-2026" at the foot of the page, which is before the Amendment Act [6]. Another error is looking only backwards and ignoring a large contract signed in the first week of the quarter.

How long. One afternoon if the books are current.

Instrument: Social Security Contribution Levy Act, No. 25 of 2022, s.4(1)(d), inserted by Act No. 10 of 2026, s.2. Official link: SSCL (Amendment) Act No. 10 of 2026. Last verified: 15 Oct 2026.

Step 2. Work out liable turnover for your activity

What to do. Registration is tested on aggregate turnover, but the levy is charged on liable turnover. The Second Schedule to the SSCL Act sets the percentage for each activity: imports 100 percent, manufacture 85 percent, services 100 percent, wholesale and retail sale 50 percent, and sale by a registered distributor of goods made or produced in Sri Lanka 25 percent [3]. Apply the 2.5 percent rate to the liable portion only.

Where. Your activity description and the Second Schedule.

What you need. A clear description of what you sell, and confirmation of whether you are a registered distributor for a local manufacturer or producer.

What goes wrong. Applying the wrong percentage. A service business that treats itself as a retailer will understate the levy by half. A manufacturer that uses 100 percent will overstate it. A business with two activities needs a separate working for each.

How long. A short discussion with your accountant if the classification is not obvious.

Instrument: SSCL Act, No. 25 of 2022, s.3 and Second Schedule (consolidated to 2026). Official link: SSCL Act, consolidated. Last verified: 15 Oct 2026.

Step 3. Prepare Form TPR_005 (SSCL)

What to do. Complete the Application for Tax Type Registration, Form TPR_005 (SSCL). It asks for your TIN, name, the SSCL liable business activity with its activity code, the address, the total turnover for the previous quarter and the previous year, and the effective date on which registration is requested [4]. If someone signs for the business, the form asks for that person's name, identity number and designation.

Where. Download the form from the IRD's Forms and Returns page. The IRD's 2022 registration notice gives the menu path: Downloads, Forms and Returns, Taxpayer Registration [5].

What you need. Your TIN, the turnover figures from Step 1 and the activity code. The 2022 notice says "No additional documents to be submitted with the application" [5]; the current form says supporting documents may be attached "if any" [4]. Have the certificate of incorporation to hand in case the office asks, but it is not a listed requirement.

What goes wrong. Leaving the effective date blank, or giving a date later than the day the threshold was crossed. Using an activity code that does not match the liable turnover percentage you will apply. If you have no TIN, you must obtain one first; registration for SSCL sits on top of it [5].

How long. Half a day once the figures are ready.

Instrument: Form TPR_005 (SSCL); IRD Notice PN/SSCL/2022-02 of 7 October 2022. Official link: Form TPR_005 (SSCL). Last verified: 15 Oct 2026.

Step 4. Lodge the form within 15 days

What to do. Submit the signed form within 15 days of the date the turnover exceeded, or became likely to exceed, the threshold [1]. The current form says it goes "to the Help Desk at the nearest IRD branch" [4]. The 2022 notice also allows hand delivery, registered post or email to the Tax Registration Unit or to the Metropolitan or Regional Office that handles your file, and says that if you email it the original must follow [5]. Keep proof of the date you submitted.

Where. The Help Desk at the nearest IRD branch, or the Tax Registration Unit at IRD Head Office, Colombo 02.

What you need. The signed form and any supporting documents.

What goes wrong. Counting 15 days from the end of the quarter instead of from the date the line was crossed. Emailing the form and never sending the original. We have not confirmed that SSCL registration can be completed entirely online, so do not assume it can.

How long. Same day if you deliver by hand.

Instrument: SSCL Act, s.4(1)(d); Form TPR_005 (SSCL); Notice PN/SSCL/2022-02. Official link: Notice PN/SSCL/2022-02. Last verified: 15 Oct 2026.

Step 5. Account for and pay SSCL every month

What to do. Account for the levy on an accrual basis [3]. Pay it monthly. Section 17(1) sets the dates: the levy for the first month of a quarter is due by the 20th of the second month, the second month's by the 20th of the third month, and the third month's by the 20th of the month after the quarter ends [3]. In plain terms, each month is paid by the 20th of the next month. File the quarterly return by the 20th of the month after the quarter ends [6] [7]. The notice says the registered person must pay SSCL "for the liable turnover from that quarter onwards" [2], so the whole quarter in which you cross the line counts, not only the days after.

Where. Payments go through the IRD's Online Tax Payment Platform with a member bank, or over the counter at Bank of Ceylon or People's Bank [8]. The IRD's SSCL page says returns are submitted online through e-Services [6].

What you need. Your SSCL registration, your monthly liable turnover working and the payment code. The IRD Tax Calendar shows SSCL payments under code 32 [7].

What goes wrong. Paying quarterly. That is the error in many internal calendars, and s.17(2) treats an unpaid monthly amount as in default [3]. Section 18 then adds a penalty of 10 percent of the amount in default, plus a further 2 percent a month if it stays unpaid, capped at 100 percent of the levy in default; the Commissioner-General may waive or reduce it in special circumstances [3]. The opposite error is leaving VAT in the base. Section 3(3)(b) says turnover does not include VAT paid for the quarter, and s.3(3)(a) leaves out bad debts incurred in it (a bad debt later recovered goes back in) [3]. Do not deduct anything else, such as costs or purchases: the levy is worked on liable turnover under the Second Schedule.

How long. Ongoing, once a month.

Instrument: SSCL Act, No. 25 of 2022, ss.16, 17 and 18 (consolidated to 2026). Official link: SSCL Act, consolidated. Last verified: 15 Oct 2026.

The worked example in Figure 7 shows why the date matters. Rs 9.4 million of service turnover at 100 percent liable and 2.5 percent gives Rs 235,000 for the quarter: Rs 75,000 for July, Rs 77,500 for August and Rs 82,500 for September. If the line is only crossed in September, the July instalment was already due on 20 August. On our reading the levy for the whole quarter is payable, so pay the earlier months as soon as you register and keep the working that shows when you crossed.

Step 6. Keep records that will support a return or a query

What to do. Keep the running turnover calculation, the list of exempt supplies you excluded, a copy of the registration form with proof of the submission date, and the monthly liable turnover workings. These are what the IRD will ask for if it queries the registration date or the first return.

Where. Your accounting system and a compliance folder.

What you need. The documents in the checklist below.

What goes wrong. Discarding the working that shows the day the threshold was crossed. That day sets both the 15 day deadline and the start of the liability.

How long. A few minutes each month once the system is in place.

Instrument: SSCL Act, No. 25 of 2022, ss.4, 16 and 17. Official link: SSCL Act, consolidated. Last verified: 15 Oct 2026.

Checklist: documents needed

• Running total of turnover for the current quarter and the three before it
• Forecast for the coming quarter (the "likely to exceed" test)
• List of any exempt supplies excluded
• Liable turnover percentage for each activity
• TIN, or a TIN application first
• Completed Form TPR_005 (SSCL) and proof of the submission date
• Monthly SSCL workings and payment receipts
• Quarterly returns and acknowledgements

Frequently asked questions

Does the new threshold apply to importers?

No. The registration threshold applies to every taxable person other than a person who imports any article [2]. SSCL on imports is dealt with at the point of import.

What if my turnover later falls below Rs 36 million?

You may apply to cancel the registration. Act No. 10 of 2026 added s.5(1)(d), which applies where turnover for four consecutive quarters does not exceed Rs 36 million, for periods from 1 July 2026 [1].

Is SSCL the same as VAT?

No. They are separate, with separate thresholds. The VAT thresholds stayed at Rs 15 million and Rs 60 million [9]. A business can be registered for one, both or neither. Our guide to the VAT registration thresholds covers the VAT side.

Is a Port City business exempt from SSCL?

We found no exemption. The Port City Act lets a Business of Strategic Importance be exempted only from the laws listed in its Schedule II, and the SSCL Act is not among them [10]. A VAT exemption for supplies to a BSI does not switch off SSCL.

Do I pay SSCL monthly or quarterly?

Monthly, by the 20th of the following month. The return is quarterly [3] [7].

Talk to us. If your books show the threshold approaching, or you are unsure which liable turnover percentage applies, our tax services and business registration teams can help; book a consultation at our contact page. Our bookkeeping practices guide covers the running totals.

WinCore Pvt Ltd

This guide is general information on the law as at 15 October 2026 and is not advice on your specific situation.

References

1. Parliament of Sri Lanka. Social Security Contribution Levy (Amendment) Act, No. 10 of 2026, certified 9 April 2026, ss.2 and 3. https://www.ird.gov.lk/en/publications/Acts_SSCL/SSCL_Act_No_10-2026_E.pdf . Primary. Accessed 15 October 2026.

1. Inland Revenue Department. Notice to the Taxpayers: Implementation of Changes to SSCL Act, PN/SSCL/2026-04/1 (16 April 2026), item 1. https://www.ird.gov.lk/en/Lists/Latest%20News%20%20Notices/Attachments/780/PN_SSCL_2026-04_1_E.pdf . Primary. Accessed 15 October 2026.

1. Inland Revenue Department. Social Security Contribution Levy Act, No. 25 of 2022, consolidated up to 2026, ss.3, 4, 16, 17, 18 and Second Schedule. https://www.ird.gov.lk/si/publications/Acts_SSCL/SSCL_Cons_Act_-_2026_Changes.pdf . Primary. Accessed 15 October 2026.

1. Inland Revenue Department. Application for Tax Type Registration, Social Security Contribution Levy, Form TPR_005(SSCL)_E. https://www.ird.gov.lk/en/Downloads/TaxpayerRegistrationDocs/TPR_005%28SSCL%29_E.pdf . Primary. Accessed 15 October 2026.

1. Inland Revenue Department. Notice to Taxpayers: Registration for Social Security Contribution Levy, PN/SSCL/2022-02 (7 October 2022). https://www.ird.gov.lk/en/Lists/Latest%20News%20%20Notices/Attachments/757/PN_SSL_2022-02_07102022_E.pdf . Primary. Accessed 15 October 2026.

1. Inland Revenue Department. Social Security Contribution Levy (SSCL), web page, "Last updated: 27-01-2026". https://www.ird.gov.lk/en/Type%20of%20Taxes/SitePages/Social%20Security%20Contribution%20Levy%20%28SSCL%29.aspx . Primary (cited for returns and to show the threshold is out of date). Accessed 15 October 2026.

1. Inland Revenue Department. Tax Calendar 2026. https://www.ird.gov.lk/en/publications/Tax%20Calendar_Documents/Tax_Calendar_2026_E.pdf . Primary. Accessed 15 October 2026.

1. Inland Revenue Department. Tax Payments: Online Tax Payment Platform (OTPP), web page. https://www.ird.gov.lk/en/publications/SitePages/Online_Pay_OTP.aspx?menuid=1416 . Primary. Accessed 15 October 2026.

1. Inland Revenue Department. Notice to the Taxpayers: Amendments to the Value Added Tax Act, SEC/PN/VAT/2026-03 (3 July 2026), item 3. https://www.ird.gov.lk/en/Lists/Latest%20News%20%20Notices/Attachments/799/PN_VAT_2026-03_New_E.pdf . Primary. Accessed 15 October 2026.

1. Parliament of Sri Lanka. Colombo Port City Economic Commission Act, No. 11 of 2021, s.52 and Schedule II. https://www.portcitycolombo.gov.lk/resources/documents/acts/11-2021_E.pdf . Primary. Accessed 15 October 2026.