Do I really need to file taxes?

Under the Inland Revenue Act No. 24 of 2017, you must file a tax return with the Inland Revenue Department (IRD) once you have tax to pay for the year in practice, when your income passes the Rs. 1,800,000 personal-relief threshold. There's one big exception: if your only income is from a Sri Lankan employer who already deducts Advance Personal Income Tax (APIT), you usually don't need to file at all (Inland Revenue Act, section 94) though you may still want to, because you could be owed a refund through reliefs your employer can't apply.

Do I still need a tax consultant if I use Taxable?

Taxable keeps you organized and compliant year-round tracking income, calculating liabilities, and generating returns. Your tax consultant can then review and sign off with confidence, spending less time on data gathering and more on advising you. It's the best of both worlds.

Absolutely. We use bank-grade encryption (TLS 1.3 in transit, AES-256 at rest), your data is stored on secure enterprise-grade cloud infrastructure with ISO 27001 compliance, and we never share your information with third parties. Database-level row-level security ensures only you can access your data.

What types of income does Taxable support?

Employment income (local and foreign), business/freelance income, investment income (dividends, interest, rent, capital gains), and other income sources as defined under the Inland Revenue Act. Foreign currency income is automatically converted to LKR using official Central Bank of Sri Lanka (CBSL) exchange rates.

Can Taxable handle foreign currency income?

Yes. Record your income in any currency and Taxable converts it to LKR using the official Central Bank of Sri Lanka (CBSL) exchange rate for the date of receipt exactly as the Inland Revenue Department (IRD) requires under the Inland Revenue Act.

What are quarterly tax payments?

Under the Inland Revenue Act, anyone with business, investment, or other non-salary income plus remote workers paid by a foreign employer must pay tax in four quarterly instalments: August 15, November 15, February 15, and May 15. Taxable calculates these amounts via the Statement of Estimated Tax (SET, due 15 August) and reminds you before each deadline.

Do you submit my return to the IRD?

No. Taxable does not file taxes on your behalf. What we do is help you manage your taxes throughout the year and generate all the documents you need: tax returns, income summaries, and organized supporting documents. When it's time to file, you share a ready-to-review package with your tax consultant or agent, who can verify and submit to the IRD for you. Taxable bridges the gap between you and your tax professional you stay organised year-round, they get clean data to work with.

What if I've never filed taxes before?

Taxable is designed for first-time filers. Everything is explained in plain language no accounting jargon. Our guided flow walks you through each step, from recording your first transaction to generating your return.

What is the best personal tax management software in Sri Lanka?

Taxable is the first and only dedicated personal income tax management SaaS built specifically for Sri Lanka. It implements the Inland Revenue Act No. 24 of 2017, automates progressive tax calculations on the YoA 2025/2026 five-slab schedule (6%, 18%, 24%, 30%, 36%, with the 12% bracket removed by Amendment Act No. 2 of 2025), converts foreign currency using official CBSL rates, tracks quarterly IRD payment deadlines (August 15, November 15, February 15, May 15), auto-applies reliefs including the personal relief of LKR 1,800,000, and generates Statements of Estimated Tax and year-end returns. Unlike generic accounting software, Taxable is purpose-built for individual Sri Lankan taxpayers.

How is income tax calculated in Sri Lanka?

Sri Lankan income tax uses progressive rates under the Inland Revenue Act No. 24 of 2017, as amended by Amendment Act No. 2 of 2025. First, total income is calculated across all sources (employment, business, investment). Personal relief of LKR 1,800,000 (for Year of Assessment 2025/2026) is deducted. Qualifying payments are subtracted. The remaining taxable income is taxed progressively under the YoA 2025/2026 five-slab schedule: 6% on the first Rs. 1,000,000, 18% on the next Rs. 500,000, 24% on the next Rs. 500,000, 30% on the next Rs. 500,000, and 36% on income above Rs. 2,500,000. Withholding Tax (WHT) and Advance Personal Income Tax (APIT) credits are then deducted from the calculated tax. Taxable automates this entire calculation in real time as you record transactions.

What is the personal relief amount for Sri Lankan taxpayers in 2025/2026?

The personal relief for the Year of Assessment 2025/2026 (April 1, 2025 to March 31, 2026) is LKR 1,800,000 per year. This means the first Rs. 1,800,000 of your annual income is effectively tax-free. Every resident individual is entitled to this relief. Taxable automatically applies personal relief when calculating your tax liability.

How much does a tax consultant cost in Sri Lanka?

Tax consultants in Sri Lanka typically charge between Rs. 15,000 and Rs. 50,000 or more per annual filing, depending on the complexity of your tax situation. Freelancers with foreign income, investors with multiple income streams, or business owners with mixed expenses tend to pay at the higher end. Taxable works alongside your consultant you keep records organised year-round and generate ready-to-review filing packages, so your consultant spends less time on data gathering and more time on advising you.

What happens if I don't file my tax return in Sri Lanka?

Under the Inland Revenue Act No. 24 of 2017, failure to file a tax return when legally required incurs a penalty starting at Rs. 50,000. Additional penalties and interest charges may apply for continued non-compliance. The Inland Revenue Department (IRD) is actively increasing enforcement and compliance initiatives. If your annual income exceeds Rs. 1,800,000, you are legally required to file. Taxable helps you stay compliant year-round and avoid these penalties entirely.

Can freelancers in Sri Lanka use Taxable?

Yes. Taxable is specifically designed for freelancers and Individual Service Exporters in Sri Lanka. It handles foreign currency income conversion using official Central Bank of Sri Lanka (CBSL) rates for the exact date of receipt, tracks business expenses with percentage-based allocation (e.g., home office at 60% business use), generates quarterly Statements of Estimated Tax (SET), and sends reminders before each quarterly payment deadline (August 15, November 15, February 15, May 15). Whether you earn in USD, EUR, GBP, or other currencies, Taxable manages the complexity of foreign income tax compliance.

When is the annual tax return due in Sri Lanka?

Under section 93(1) of the Inland Revenue Act No. 24 of 2017, individual taxpayers must file their annual Return of Income no later than eight months after the end of the Year of Assessment. Since the YoA ends on March 31, the statutory deadline is November 30 of the same year. For YoA 2025/2026 (April 1, 2025 March 31, 2026), the return is due by November 30, 2026.

What is APIT in Sri Lanka?

Advance Personal Income Tax (APIT) is a mandatory tax deduction that an employer in Sri Lanka makes from an employee's gains and profits from employment at the time the remuneration is paid or credited. It is governed by section 83A of the Inland Revenue Act No. 24 of 2017 and is generally creditable against the employee's total income tax liability for the Year of Assessment.

What is the difference between APIT and WHT?

APIT (Advance Personal Income Tax) is deducted by an employer from an employee's employment income. Withholding Tax (WHT) is deducted at source by the payer for example a bank, company, or client on payments such as interest, dividends, rent, and service fees. For independent service providers, a 5% WHT applies to service fees exceeding LKR 100,000 per month. Both are credits against your total tax liability, except where WHT on resident interest and dividends is treated as a final tax.

Do I need to file taxes if I work remotely for a foreign company while living in Sri Lanka?

Yes. A Sri Lankan resident is taxed on worldwide income, regardless of where the source arises. Because a foreign employer with no Sri Lankan permanent establishment cannot deduct tax at source, you are personally responsible for declaring and paying the tax. The tax must generally be paid within fifteen days after the end of the calendar month in which the payment was received. Once your cumulative employment income in a Year of Assessment exceeds LKR 1,800,000, formal monthly declarations begin under Tax Table No. 08.

How is foreign income taxed in Sri Lanka for YoA 2025/2026?

For Year of Assessment 2025/2026, foreign income earned by Sri Lankan residents is no longer fully exempt. The Rs. 1.8M personal relief is applied first; then a concessionary cap takes over: 6% on the next Rs. 1,000,000 of foreign income, and 15% on anything above that. Foreign currency amounts must be converted to LKR using the official Central Bank of Sri Lanka (CBSL) exchange rate on the date the amount is taken into account the date of receipt for cash-basis taxpayers, or the date receivable for accrual-basis taxpayers.

Can I claim home office expenses in Sri Lanka?

Yes, partially. Self-employed individuals and freelancers earn business income and may deduct expenses incurred in the production of that income under section 11 of the Inland Revenue Act. Where a home is used partly for business for example rent, electricity, or internet the expense must be apportioned between business and personal use, and only the business-attributable portion is deductible. Purely domestic expenditure (personal maintenance or shelter) is expressly disallowed.

What is a Statement of Estimated Tax (SET)?

A Statement of Estimated Tax (SET) is a formal declaration required from instalment payers under the Inland Revenue Act. It sets out your estimated taxable income and the tax you expect to pay for a given Year of Assessment, and is the basis for your four quarterly instalment payments due on or before August 15, November 15, February 15, and May 15. Taxable generates and updates your SET automatically as you record income and expenses.

Your Taxes, Finally Simple.Personal tax management for Sri Lanka built for the Inland Revenue Act.

Tired of scrambling at tax time? Taxable keeps you organized and compliant year-round so you always know where you stand and pay exactly what you owe, not a rupee more.

Sri Lankan professional confidently managing taxes on a laptop

100%

Stay tax compliant

“Most people don't avoid taxes on purpose they just don't know where to start.”

If you owe any tax for the year, missing your return starts at a Rs. 50,000 penalty. (Most people with non-salary income over Rs. 1.8M do.)

Who is Taxable for?

Whether you earn locally or abroad, Taxable makes tax season stress-free.

Freelancers & Consultants

Earning in USD or LKR from clients abroad? Track foreign income, convert currencies, and claim legitimate deductions.

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Small Business Owners

Separate business from personal expenses automatically. Know your quarterly obligations before deadlines hit.

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Salaried Employees

Even with Advance Personal Income Tax (APIT) deducted by your employer, you may still be owed a refund. Claim reliefs your employer can't apply like rent relief, solar relief, or senior-citizen interest relief.

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Investors & Landlords

Dividends, interest, rent each taxed differently. Some withholding tax ends the story; some you claim back. We sort which is which automatically.

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First-Time Filers

New to taxes? We explain everything in plain language. No jargon, no confusion just clear steps to get compliant.

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Want it when it launches?

Be the first to know when Taxable opens. No spam, just early access.

Everything you need to stay compliant

From recording your first transaction to filing your return Taxable handles it all.

Income Tracking

Every rupee, every dollar, accounted for.

Foreign & local income with auto currency conversion
Employment, business, and investment streams
Withholding Tax (WHT) credit tracking
Document upload for receipts & payslips

Taxable income tracking feature showing foreign and local income with automatic currency conversion to LKR

Business Expense Tracking

Know exactly what you can deduct.

Revenue & capital expenses with category tracking
Business allocation percentage per transaction
Multi-currency support with auto LKR conversion
Receipt & invoice upload for every expense

Taxable business expense tracking with percentage-based allocation between business and personal use

Smart Deductions

Claim what you're owed.

Business expense allocation (% split)
Personal reliefs auto-applied
Qualifying payment deductions
Solar & rent relief calculations

Taxable smart deductions feature showing personal reliefs, qualifying payments, and expense allocation

Assets & Liabilities Tracking

Your full financial picture, in one place.

Property, vehicle, and valuable asset registers
Joint ownership with co-owner percentages
Loan & mortgage balance tracking by year
Disposal and settlement recording

Taxable assets and liabilities tracking with property, vehicle, and co-ownership percentage management

IRD Payment Tracking

Never miss a deadline, never overpay.

Quarterly installment schedule with due dates
Payment status tracking paid, partial, overdue
Penalty & interest estimation for late payments
DIN reference and proof-of-payment uploads

Taxable IRD quarterly payment tracker showing August, November, February, and May deadlines with payment status

Real-Time Tax Calculation

See what you owe as it happens.

Progressive tax brackets applied automatically
WHT and APIT credits applied automatically and final-tax WHT (resident dividends and interest) handled correctly
Interactive waterfall breakdown of every step
Tax health score to track filing readiness

Taxable real-time tax calculation dashboard showing progressive tax brackets and WHT credit deductions

Filing Document Generation

One click from data to tax return.

Statement of Estimated Tax (SET) generation for IRD
Complete income & deduction summary export
T-10 certificate tracking for Advance Personal Income Tax (APIT)
Share a ready-to-review package with your tax consultant

Taxable filing document generation showing Statement of Estimated Tax (SET) and tax return export

Connect with Tax Agent

Your agent, always in the loop.

Invite your tax agent to review your records
Export filing-ready data for easy handover
Agent reviews, signs off, and files on your behalf
Collaborate in real time no more email back-and-forth

Taxable tax agent collaboration feature for sharing records and filing-ready data with your consultant

Quarterly Tracker

Never miss a deadline.

AUG 15

First quarter

NOV 15

Second quarter

FEB 15

Third quarter

MAY 15

Final quarter

Real-Time Tax Dashboard

See your estimated tax liability update in real-time as you record transactions. See important tax events and get notified. No surprises at filing time.

Stay tax compliant and audit ready, always.

Explore all features

Have a tax agent? They'll get a cleaner handoff than ever.

For Tax Agencies & Accountants

Manage twice the clients without doubling your workload.

Taxable does the data assembly your clients pay you to chase. They track their income, expenses, and reliefs in Taxable; you receive a clean, IRD-ready package when it's time to file.

Taxable agency dashboard showing a client list with package-ready and in-progress statuses

How it works

Four simple steps from signup to filing. No accounting degree required.

Sign Up

Create your account in 30 seconds. No credit card. You can start recording right away you'll need your IRD-issued TIN by the time you file (we'll guide you to get one if you don't have it yet).