As per Sri Lanka Budget 2017-2018 Income tax rates are as under:
Taxable Income (LKR) | Tax Rate |
Upto 1,200,000 | Nil |
Next LKR 600,000 | 4% |
Next LKR 600,000 | 8% |
Next LKR 600,000 | 12% |
Next LKR 600,000 | 16% |
Next LKR 600,000 | 20% |
Remaining amount | 24% |
Note: Tax Free Allowance
LKR 500,000 for all source of Income
Additional Tax Relief LKR 700,000 for employees only
Taxable Income (Rs) | Tax Rate |
First LKR 600,000 | 4% |
Next LKR 600,000 | 8% |
Next LKR 600,000 | 12% |
Next LKR 600,000 | 16% |
Next LKR 600,000 | 20% |
Remaining amount | 24% |
Description | Total Tax |
Capital Gain exceeding LKR 50,000 | 10% |
Assets under Capital Gain Tax
- Land or buildings
- a membership interest in a company, partnership or trust
- a security or other financial asset
- an option, right or other interest in an asset referred to above
Excluded assets from Capital Gain Tax
Trading Stock and depreciable assets are specifically excluded from Capital Gain Tax
Particulars | Tax Rate |
Small and medium enterprises | 14% |
Export houses | 14% |
Agricultural Business | 14% |
Education Services | 14% |
Tourism Companies | 14% |
Information Technology Companies | 14% |
Betting, Gambling, Liquor and tobacco business | 40% |
Companies other than taxable @14% or 40% | 28% |
On Dividend Distributed | 14% |
Remittances of Profit | 14% |