Central & South Asia
Sri Lanka: tax at a glance
Residents are taxed on worldwide income, following sharp tax hikes in 2023. Personal tax is progressive up to 36%, corporate tax stands at 30%, and VAT is 18%.
Worldwide (residence-based)
Last verified
The taxes
- Personal income (top)
- 36%Progressive, from 6% to 36%. The top rate kicks in at a relatively modest income following the 2023 reforms.
- Corporate income
- 30%
- Capital gains
- 10% on the realisation of investment assets.
- VAT
- 18%
- Dividends (WHT)
- 15%
- Interest (WHT)
- 10%
- Royalties (WHT)
- 14%
- Social security (employee)
- 8%
- Social security (employer)
- 15%
- Wealth tax
- None
- Inheritance / estate
- None. Estate duty has been abolished.
- Property tax
- Local-authority rates on the annual value of property.
- Other
- Social Security Contribution Levy (SSCL) of 2.5% on turnover. EPF at 8%+12% and ETF at 3%. Some sectors face corporate tax of 40%–45%.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.