Foreign Service Export Tax Calculator Sri Lanka

This calculator is for Sri Lanka-resident individuals who earn income by providing services to clients outside Sri Lanka. Such as freelancers, IT consultants, designers, and other independent service exporters. It is not intended for people in formal employment with a foreign company; those individuals should use the Employment Income from Foreign Employer calculator.

Profit means the amount you earn after deducting your legitimate business expenses from your gross service fees. If you receive USD 3,000 in fees and spend USD 500 on business costs, your taxable profit is USD 2,500. Enter only your net profit, not your total invoice amount.

If you receive your foreign earnings by depositing them into a Sri Lankan bank account through an official remittance channel (such as a SWIFT transfer), the income is considered 'remitted through a Sri Lankan bank'. Under current rules, such income is subject to a maximum 15% tax rate, which is more favourable than the standard progressive rates.

If foreign income is not remitted through a Sri Lankan bank, for example, it is held offshore or received via informal channels - it may be subject to the standard progressive individual income tax rates, which can reach up to 36%. The calculator shows both scenarios so you can compare the tax impact.

Use the current selling rate published by the Central Bank of Sri Lanka or your bank for the relevant month. The calculator defaults to an indicative rate of LKR 300 per USD, but you should update this to the current rate for an accurate estimate.

Yes. Individuals earning foreign service income are required to file an annual income tax return through the IRD's RAMIS system. This calculator helps you estimate the monthly tax position, but it does not replace the formal return filing obligation.

Yes. Legitimate business expenses incurred in earning the foreign income. Such as software subscriptions, equipment, professional fees, and internet costs - can generally be deducted. Enter your net profit after expenses into this calculator. Consult a tax professional for guidance on which expenses are allowable.

The calculator uses USD as the input currency since it is the most common denomination for service exports. If you earn in GBP, EUR, or another currency, convert the amount to USD at the current rate before entering it, or adjust the exchange rate field to reflect your actual LKR conversion.