Corporate Tax Calculator Sri Lanka

The standard corporate income tax (CIT) rate in Sri Lanka is 30%, applicable to the taxable income of most resident and non-resident companies under the Inland Revenue Act No. 24 of 2017 (as amended). This rate applies to general trade, manufacturing, financial services, and other business activities that do not qualify for a concessionary or elevated rate. Corporate tax is assessed on the basis of the company's annual return filed through the RAMIS online portal.

A concessionary corporate income tax rate of 15% applies to income derived from the export of services and foreign-sourced income remitted to Sri Lanka through a licensed local bank, effective 1 April 2025. This rate was introduced to incentivise service exports and repatriation of foreign earnings. To qualify, the foreign-currency income must be remitted through a licensed commercial bank operating in Sri Lanka. Income that is retained abroad or remitted through unofficial channels does not qualify for the 15% rate and is taxable at the standard 30%. Companies with mixed income sources must apportion their taxable profit between the qualifying and non-qualifying portions.

Companies engaged in betting and gaming, the manufacture or import and sale of liquor, and the manufacture or import and sale of tobacco products are subject to a corporate income tax rate of 45%, effective 1 April 2025. This elevated rate applies to income derived specifically from these "sin industry" activities. Companies with diversified income that includes both sin-industry and general business operations may need to apportion their income accordingly. The 45% rate does not apply to companies that merely distribute or retail these products under separate licences if they are not the manufacturer or importer.

The 45% corporate income tax rate for betting, gaming, liquor manufacture/import/sale, and tobacco manufacture/import/sale took effect from 1 April 2025, as announced in the 2025 Budget by the Government of Sri Lanka. The previous rate was 40%. This increase is part of a broader policy to discourage consumption of products considered harmful to public health and to raise fiscal revenue. Companies in these sectors should update their provisional tax calculations (QPT) and RAMIS filings to reflect the new rate.

Under the Inland Revenue Act, companies are required to make quarterly provisional tax payments (QPT) based on their estimated tax liability for the year of assessment. QPT is due within 30 days after each quarter end (i.e., by 31 July, 31 October, 31 January, and 30 April for a March year-end). Each quarterly payment should be at least one-quarter of the estimated annual tax. Any balance after QPT payments is settled on filing the annual return. Underpayment of QPT may attract a surcharge at the prescribed rate.

Yes. A company that earns both qualifying foreign-sourced income (remitted via a licensed local bank, taxable at 15%) and non-qualifying local income (taxable at 30%) must apportion its taxable profit between the two categories. The 15% rate applies only to the portion attributable to qualifying foreign income; the standard 30% rate applies to the balance. Companies should maintain separate accounting records for these income streams and be prepared to justify the apportionment basis to the Commissioner General of Inland Revenue on audit.