Bonus Tax Calculator Sri Lanka

Any one-time or irregular employment payment is considered a bonus or lump-sum for APIT purposes. This includes annual bonuses and performance incentives, leave encashment payments, salary arrears or back pay, medical expense reimbursements, share allocations from employee share schemes, ex-gratia payments, and any other non-regular payment received from your employer.

Because APIT uses an annualised income method, your bonus is not taxed in isolation. It is added to your monthly salary, and the combined amount is multiplied by 12 to estimate annual income. That higher estimate can fall in a band taxed at 18%, 24%, or 30% rather than the lower band your salary alone would occupy. The result is a higher APIT deduction in that specific month.

The calculator annualises your income by taking the salary already received in the current tax year plus the estimated salary for remaining months, then adds the bonus amount. This gives an estimated total annual income, which is used to determine the applicable APIT rate for the lump-sum payment.

Yes. If you received a partial bonus payment earlier in the year and APIT was already deducted on it, you can enter that previously deducted tax in Step 3 of the calculator. This prevents double-counting and ensures the current calculation shows only the remaining tax payable on the new payment.

Yes. Employers are legally required to deduct APIT from every taxable payment. Salary, bonus, leave encashment, arrears - in the month it is made. Remittance to the IRD is due by the 15th of the following month. Late remittance attracts a 1.5% monthly surcharge on the outstanding amount.

This calculator is set to the Sri Lanka tax year running from April 2025 to March 2026 (Year of Assessment 2025/2026). All inputs and calculations are based on income received within this period.

For months already paid, enter the actual salary received. For future months, enter your expected salary. This gives the most accurate annual income estimate and therefore the most accurate bonus tax calculation. If your salary changed recently, use the new amount for all remaining months.

Directors' remuneration can have different tax treatment depending on the nature of the payment and the company structure. This calculator is designed for employees receiving APIT-deductible bonus payments. For director-specific scenarios, consult a qualified tax professional or WinCore's tax team.