Sri Lanka imposes mandatory tax on foreign workers

Foreign workers employed in Sri Lanka who earn more than Rs 3 million within a year would be liable to a mandatory tax, Sri Lanka’s tax authority has said

Aug 13, 2020
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Foreign workers employed in Sri Lanka who earn more than Rs 3 million within a year would be liable to a mandatory tax, Sri Lanka’s tax authority has said.

The tax became mandatory after the Inland Revenue Department (IRD) revised the regulations of the Advance Personal Income Tax (APIT) imposed in April this year.

“Deduction of APIT is compulsory with effect from 01.04.2020 on the remuneration payments to…all non-resident employees and all resident but non-citizen employees,” an IRD notice read.

Initially, the tax was optional for resident workers and mandatory for non-resident Sri Lankan workers.

Accordingly, the IRD has instructed employees to deduct the tax from resident but non-citizen employees who had not given their consent since the tax was introduced.

https://www.newsfirst.lk/2020/08/13/sri-lanka-imposes-mandatory-tax-on-foreign-workers/