WHT Tax Calculator

Withholding Tax is a tax deducted at source by the payer (withholding agent) before remitting a payment to the payee. Instead of the payee paying tax themselves, the payer deducts the tax and remits it directly to the Inland Revenue Department on the payee's behalf. It is governed by the Inland Revenue Act No. 24 of 2017.

The withholding agent is the party making the payment, responsible for deducting WHT and remitting it to the IRD. This is typically a company, partnership, or individual in business paying rent, interest, dividends, royalties, or service fees to another party.

Common income types subject to WHT in Sri Lanka include: dividends paid to residents (15%); interest on deposits (10% effective April 1, 2025); rent on immovable property (10%); royalties (14%); service fees for work done in Sri Lanka paid to non-residents; and certain contract payments. Rates vary by income type. Always verify with current IRD guidance.

Indicative rates for common income types: dividends: 15%; interest on bank deposits: 10% (increased from 5% effective April 1, 2025); rent: 10%; royalties: 14%. These rates are subject to change and may be reduced under double-taxation avoidance treaties. This calculator applies current standard rates and should be verified against the latest IRD circulars for your specific transaction.

WHT deducted in any given month must be remitted to the IRD on or before the 15th day of the following month. Failure to remit on time can result in penalties and interest charges under the Inland Revenue Act.

Yes. After entering the income type and amount, the calculator generates a printable WHT calculation summary that can be saved as a PDF or printed. This draft certificate can support your internal records and be shared with the payee as confirmation of the withholding. It is not an official IRD-issued certificate.

For certain income types it can be treated as a final tax. For example, WHT deducted on dividends received by resident individuals is generally a final tax and no further tax is due on that income. For other types such as rent and interest, the WHT is an advance credit against the recipient's final income tax liability for the year.

This calculator is a planning and reference tool for the most common WHT scenarios. Final rates, exemptions, and treaty reliefs should always be verified against current IRD guidance and applicable double-taxation avoidance agreements before deducting and remitting. For complex or high-value transactions, consult a qualified tax professional.