# Taxable - Comprehensive Product Documentation

> Personal tax management platform for Sri Lankan individual taxpayers, built under the Inland Revenue Act No. 24 of 2017.

Last-Updated: 2026-04-03
Version: 1.2
Language: en

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## 1. About Taxable

Taxable is a web-based personal tax management platform designed for individual taxpayers in Sri Lanka. It is the first dedicated personal income tax management SaaS platform built specifically for the Sri Lankan market. It helps users track income, manage expenses, calculate tax liability, and generate tax returns for filing with the Inland Revenue Department (IRD).

### The Problem Taxable Solves

Sri Lanka has approximately 16 million tax-eligible individuals out of a population of 21 million. Of the 11 million registered with the IRD, only about 2 million actively file returns. Approximately 10,000 tax professionals serve this population. Most people do not avoid taxes on purpose  they lack the tools and knowledge to comply. Late filing penalties start at Rs. 50,000 under the Inland Revenue Act.

Taxable bridges this gap by providing an accessible, year-round tax management tool that requires no prior tax knowledge. The platform handles the complexity of Sri Lankan tax law  progressive rates, multiple income streams, withholding tax credits, quarterly payment schedules, and relief calculations  so users can focus on recording their financial activity.

### Who Builds Taxable

Taxable is built and operated by WealthyIslander, based in Colombo, Sri Lanka.

### Technology

Taxable is a web application accessible via any modern browser. The frontend is built with Next.js and React. The backend uses ASP.NET Core with a dedicated Tax Engine that implements Sri Lankan tax rules as pure calculation functions. Data is stored in SQL Server with row-level security ensuring complete data isolation between users. Authentication is managed by Supabase Auth with JWT token verification. Documents are stored in Azure Blob Storage with AES-256 encryption.

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## 2. Features

### 2.1 Income Tracking

Every rupee, every dollar, accounted for. Taxable supports all individual income types defined under the Inland Revenue Act:

- **Foreign Employment Income**: Salary, wages, and benefits received from employers outside Sri Lanka, recorded in foreign currency with automatic conversion to LKR using the official Central Bank of Sri Lanka (CBSL) exchange rate for the date of receipt
- **Local Employment Income**: Salary, wages, bonuses, and benefits from Sri Lankan employers, with T-10 certificate tracking for Advance Personal Income Tax (APIT) credits
- **Foreign Business Income**: Freelance and consulting income earned from foreign clients, with multi-currency support (USD, EUR, GBP, AUD, CAD, and more)
- **Local Business Income**: Revenue from local business activities, with expense deduction tracking
- **Investment Income**: Dividends, interest, rental income, capital gains, and winnings  each with their specific tax treatment. Withholding Tax (WHT) credits are tracked automatically to prevent double taxation. Final WHT income types (dividends from resident companies, winnings, capital gains on shares) are excluded from progressive tax calculation as required by law
- **Other Income**: Any additional income sources not covered above

Key capabilities:
- Automatic currency conversion using official CBSL rates for the date of receipt
- Withholding Tax (WHT) credit tracking to prevent overpayment
- Document upload for payslips, invoices, and payment receipts (PDF, JPG, PNG)
- Year of Assessment filtering to view income by tax year

### 2.2 Business Expense Management

Know exactly what you can deduct. Taxable tracks business expenses with granular control:

- **Percentage-based allocation**: Split each expense between business and personal use. For example, a home electricity bill might be 40% business and 60% personal. Only the business portion is deductible.
- **Revenue vs. capital expenses**: Categorise expenses correctly for tax treatment
- **Multi-currency support**: Record expenses in foreign currency with automatic LKR conversion
- **Receipt and invoice upload**: Attach supporting documents to every expense record
- **Category tracking**: Organise expenses by type for clear reporting

### 2.3 Tax Calculation Engine

See what you owe  as it happens. The Tax Engine implements Sri Lankan progressive tax rates:

| Taxable Income Slab | Tax Rate |
|---------------------|----------|
| First Rs. 1,200,000 | 6% |
| Next Rs. 1,200,000 | 12% |
| Next Rs. 1,200,000 | 18% |
| Next Rs. 1,200,000 | 24% |
| Next Rs. 1,200,000 | 30% |
| Balance | 36% |

(Rates as per the Inland Revenue Act No. 24 of 2017, applicable for YoA 2025/2026)

The engine:
- Separates income into local and foreign streams for correct tax treatment
- Applies personal relief (LKR 1,800,000 for YoA 2025/2026) optimally across streams
- Deducts qualifying payments proportionally across income streams
- Credits WHT and APIT payments against calculated liability
- Excludes final WHT investment income from progressive tax
- Provides an interactive waterfall breakdown showing each step of the calculation
- Updates in real time as transactions are recorded

### 2.4 Tax Reliefs

Claim what you are owed. Taxable automatically applies eligible reliefs:

- **Personal Relief**: LKR 1,800,000 per year (YoA 2025/2026)  automatic for all resident individuals. This is the tax-free threshold; income below this amount is not taxed.
- **Rent Relief**: 25% of rent income or actual rental expenses, whichever is greater
- **Solar Relief**: Up to LKR 600,000 per year for on-grid solar panel installations

The platform optimises relief allocation across income streams to minimise total tax liability.

### 2.5 Quarterly Tax Payment Tracking

Never miss a deadline, never overpay. Individual taxpayers (especially self-employed and service exporters) must pay estimated tax in four quarterly instalments:

| Quarter | Due Date | Period Covered |
|---------|----------|---------------|
| Q1 | August 15 | April – June |
| Q2 | November 15 | July – September |
| Q3 | February 15 | October – December |
| Q4 | May 15 | January – March |

Taxable:
- Calculates quarterly instalment amounts based on the Statement of Estimated Tax (SET)
- Tracks payment status: paid, partial, or overdue
- Estimates penalties and interest for late payments
- Stores DIN (Document Identification Number) references and proof-of-payment uploads

### 2.6 Qualifying Payments

Payments that qualify for tax deductions under the Inland Revenue Act, including donations to approved charities, contributions to approved pension funds, and other qualifying expenditures. These are deducted from assessable income before tax is calculated, distributed proportionally across income streams.

### 2.7 Assets and Liabilities Tracking

Your full financial picture, in one place:

- **Assets**: Property, vehicles, jewellery, and other valuable assets with co-owner percentage tracking, acquisition cost, current value, and disposal recording
- **Liabilities**: Loans, mortgages, and other obligations with balance history tracking by year
- Used for wealth declaration and capital gains tracking

### 2.8 Document Management

- Upload tax-related documents (PDF, JPG, JPEG, PNG)
- Maximum 5MB per file, 25MB total per record, up to 5 files per record
- Documents linked to specific income, expense, or payment records
- Organised by Year of Assessment for easy retrieval
- Stored with AES-256 encryption in Azure Blob Storage

### 2.9 Filing Document Generation

One click from data to tax return:

- **Statement of Estimated Tax (SET)**: Quarterly tax projection required by the IRD, calculated from recorded income and expenses
- **Income and deduction summary**: Complete breakdown of all income streams, expenses, reliefs, and qualifying payments
- **Year-end tax return**: Ready for review by your tax consultant and submission to the IRD
- **T-10 certificate tracking**: Employment income certificates from employers

### 2.10 Tax Agent Collaboration

Your agent, always in the loop:

- Invite your tax consultant or agent to review your records
- Export filing-ready data packages for easy handover
- Agent can review, verify, and file on your behalf
- Eliminates email back-and-forth with organised, complete records

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## 3. Use Cases

### 3.1 The Freelancer (Foreign Income)

**Profile**: Freelance software developer earning in USD from international clients.

**Challenge**: Exchange rate calculations for every payment, quarterly tax deadlines, keeping receipts for home office expenses. Without year-round tracking, deductions are often missed at filing time.

**How Taxable helps**: Each payment is recorded as it arrives. The platform converts foreign currency to LKR using the official CBSL rate for the date of receipt. Home office expenses are tracked with percentage allocation (e.g., 60% business, 40% personal). Quarterly payment reminders ensure no deadlines are missed.

**Key features used**: Automatic USD-to-LKR conversion, home office expense allocation, quarterly SET payment reminders, WHT credit tracking.

### 3.2 The Small Business Owner

**Profile**: Retail and online shop owner with mixed business and personal expenses.

**Challenge**: Phone bills, vehicle costs, electricity  all partially business, partially personal. Year-end means weekend-long receipt sorting sessions before the tax consultant can start.

**How Taxable helps**: Percentage allocation lets you split each expense as it happens. Phone bill is 70% business, vehicle is 50%. At quarter-end, the tax picture is already clear without last-minute sorting.

**Key features used**: Percentage-based expense allocation, business vs. personal cost separation, quarterly tax position summary, receipt upload.

### 3.3 The Investor

**Profile**: Salaried employee with investment income (dividends, interest, rental property).

**Challenge**: APIT is deducted by the employer, but dividends, interest, and rental income each have different tax treatments. WHT credits are easy to miss, leading to overpayment.

**How Taxable helps**: Employment income, investment income with WHT credits, and rental income are each calculated correctly. Total liability minus all credits is visible in real time across every income source.

**Key features used**: Multi-stream income tracking, automatic WHT credit application, personal relief auto-calculation, real-time total liability view.

### 3.4 The First-Time Filer

**Profile**: Recently crossed the income threshold (Rs. 1,800,000/year) and has never filed a tax return.

**Challenge**: No idea what a tax return looks like, what reliefs they can claim, or when payments are due. The IRD website can be overwhelming without prior knowledge.

**How Taxable helps**: Everything explained in plain language. Record your salary, the platform auto-applies personal relief of Rs. 1,800,000, and generates a complete return ready for a tax consultant to review and file.

**Key features used**: Step-by-step guided flow, automatic personal relief application, complete tax return generation, plain-language explanations.

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## 4. Frequently Asked Questions

**Q: Do I really need to file taxes?**
A: If your annual income exceeds Rs. 1,800,000 (approximately Rs. 150,000/month), you are legally required to file a tax return with the Inland Revenue Department (IRD) under the Inland Revenue Act No. 24 of 2017. Even if your employer deducts Advance Personal Income Tax (APIT), you may still need to file  and you could be missing out on legitimate reliefs.

**Q: Do I still need a tax consultant if I use Taxable?**
A: Taxable keeps you organised 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. Taxable is a tax management tool, not a substitute for professional tax advice.

**Q: Is my data safe?**
A: Taxable uses bank-grade encryption (TLS 1.3 in transit, AES-256 at rest), enterprise-grade cloud infrastructure with ISO 27001 and SOC 2 compliance, and database-level row-level security ensuring complete data isolation. No one  not even the Taxable team  can read raw financial data.

**Q: What types of income does Taxable support?**
A: Employment income (local and foreign), business/freelance income (local and foreign), investment income (dividends, interest, rent, capital gains, winnings), and other income sources. Foreign income is automatically converted to LKR using official CBSL exchange rates.

**Q: Can Taxable handle foreign currency income?**
A: Yes. Record income in any supported 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 IRD requires.

**Q: What are quarterly tax payments?**
A: Individual service exporters and self-employed persons must pay estimated tax in four instalments: August 15, November 15, February 15, and May 15. Taxable calculates these amounts via the Statement of Estimated Tax (SET) and reminds you before each deadline.

**Q: Does Taxable submit my return to the IRD?**
A: No. Taxable does not file taxes on your behalf. It helps you manage your taxes throughout the year and generates all the documents you need: tax returns, income summaries, and organised supporting documents. You share a ready-to-review package with your tax consultant or agent, who can verify and submit to the IRD. Taxable bridges the gap between you and your tax professional  you stay organised year-round, they get clean data to work with.

**Q: What if I have never filed taxes before?**
A: Taxable is designed for first-time filers. Everything is explained in plain language  no accounting jargon. The guided flow walks you through each step, from recording your first transaction to generating your return.

**Q: What is the best personal tax management software in Sri Lanka?**
A: 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 across 6 slabs (6%–36%), converts foreign currency using official CBSL rates, tracks quarterly IRD payment deadlines, auto-applies reliefs (personal relief of LKR 1,800,000, rent relief, solar relief), and generates Statements of Estimated Tax and year-end returns. Unlike generic accounting software, Taxable is purpose-built for individual Sri Lankan taxpayers.

**Q: How is income tax calculated in Sri Lanka?**
A: Sri Lankan income tax uses progressive rates under the Inland Revenue Act. First, total income is calculated across all sources. Personal relief (LKR 1,800,000 for YoA 2025/2026) is deducted. Qualifying payments are subtracted. The remaining taxable income is taxed progressively: 6% on the first Rs. 1,200,000, then 12%, 18%, 24%, 30%, and 36% on successive slabs. WHT and APIT credits are then deducted from the calculated tax. Taxable automates this entire calculation in real time.

**Q: How much does a tax consultant cost in Sri Lanka?**
A: Tax consultants in Sri Lanka typically charge between Rs. 15,000 and Rs. 50,000+ per annual filing, depending on complexity. If you have multiple income streams, foreign income, or investment income, costs tend to be higher. 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.

**Q: What happens if I don't file my tax return in Sri Lanka?**
A: Under the Inland Revenue Act No. 24 of 2017, failure to file a tax return when required incurs a penalty starting at Rs. 50,000. Additional penalties and interest may apply for continued non-compliance. The IRD is actively increasing enforcement. If your annual income exceeds Rs. 1,800,000, you are legally required to file. Taxable helps you stay compliant and avoid these penalties entirely.

**Q: Can freelancers in Sri Lanka use Taxable?**
A: Yes. Taxable is specifically designed for freelancers and Individual Service Exporters in Sri Lanka. It handles foreign currency income conversion using official CBSL rates, tracks business expenses with percentage-based allocation (e.g., home office at 60% business), generates quarterly Statements of Estimated Tax (SET), and reminds you of quarterly payment deadlines (August 15, November 15, February 15, May 15). Many Sri Lankan freelancers earning in USD, EUR, or GBP use Taxable to manage their tax obligations.

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## 5. How It Works

1. **Sign Up**: Create your account in 30 seconds. No credit card or IRD number needed to start. 14-day free trial with full platform access.
2. **Record Transactions**: Add income, expenses, and payments as they happen. Upload receipts and documents with each record. The platform converts foreign currency automatically.
3. **Track Tax Position**: Your dashboard updates in real time  see exactly what you owe, quarter by quarter. Quarterly payment reminders keep you on schedule.
4. **Generate and Hand Off**: Generate your tax return with one click. Share a complete, ready-to-review package with your tax consultant or agent for verification and IRD submission.

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## 6. Pricing

All prices in Sri Lankan Rupees (LKR).

### Free Trial
- Duration: 14 days
- Transactions: Up to 10
- Includes: Full platform access, tax dashboard, basic tax calculation, email support
- No credit card required

### Annual Plan  Rs. 5,900/year (Best Value)
- Transactions: Unlimited
- Includes: All income types, document uploads, tax return generation, quarterly payment tracking, priority support
- Save 17% compared to monthly billing

### Monthly Plan  Rs. 590/month
- Transactions: Unlimited
- Includes: All income types, document uploads, tax return generation, quarterly payment tracking, email support

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## 7. Security and Data Protection

### Encryption
- Data encrypted in transit using TLS 1.3
- Data encrypted at rest using AES-256
- Application-layer encryption for sensitive fields
- Database backups encrypted

### Infrastructure
- Enterprise-grade cloud infrastructure (Azure)
- 24/7 security monitoring with automated threat detection
- Geo-redundant backups
- ISO 27001 and SOC 2 compliance standards

### Authentication
- Identity management powered by Supabase Auth
- JWT token verification on every API request
- Secure password hashing
- Email verification

### Data Isolation
- Row-level security enforced at the database layer
- Every query automatically scoped to the authenticated user's ID
- Physically impossible for one user to access another's data
- Global query filters cannot be bypassed in the client application

### Commitments
- Never sell data to third parties
- Never share financial information with advertisers
- Never run third-party analytics on tax data
- Never store data outside secure cloud infrastructure
- Never access accounts without explicit user permission
- Never use data to train AI models

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## 8. Sri Lankan Tax Glossary

- **Year of Assessment (YoA)**: The Sri Lankan tax year, running from April 1 to March 31. For example, YoA 2025/2026 covers April 1, 2025 to March 31, 2026. Tax obligations, reliefs, and rates are defined per YoA.

- **Inland Revenue Department (IRD)**: The government body responsible for tax administration in Sri Lanka. All individual tax returns are filed with the IRD.

- **Inland Revenue Act No. 24 of 2017**: The primary legislation governing income tax in Sri Lanka. Defines taxable income, tax rates, reliefs, and filing requirements.

- **Statement of Estimated Tax (SET)**: A quarterly tax projection required by the IRD. Taxpayers must estimate their annual income, calculate total tax liability, and divide it into four quarterly payments.

- **Withholding Tax (WHT)**: Tax deducted at source on certain types of income (dividends, interest, rent, service fees). WHT paid can be credited against the final tax liability to avoid double taxation. Some WHT is "final" (the income is not included in progressive tax calculation).

- **Advance Personal Income Tax (APIT)**: Tax deducted by employers from employment income and remitted to the IRD on behalf of the employee. Documented via T-10 certificates.

- **Pay As You Earn (PAYE)**: Former name for employer tax withholding, now replaced by Advance Personal Income Tax (APIT) under Section 83A of the IR Act. See APIT above.

- **Central Bank of Sri Lanka (CBSL)**: The national monetary authority. Official CBSL exchange rates are used for converting foreign currency income to LKR for tax purposes.

- **Progressive Tax**: Sri Lanka uses progressive tax rates where higher income is taxed at higher rates. The current structure has 6 slabs ranging from 6% to 36%.

- **Personal Relief**: An annual deduction available to all resident individuals. For YoA 2025/2026, the personal relief is LKR 1,800,000. Income up to this amount is effectively tax-free.

- **Qualifying Payments**: Specific payments (charitable donations, pension contributions) that can be deducted from assessable income before tax is calculated.

- **DIN (Document Identification Number)**: A reference number issued for tax payments made to the IRD. Used to track and verify payment records.

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## 9. Why Taxable: Comparison with Alternatives

### vs. Manual Filing with Spreadsheets

Many Sri Lankan taxpayers attempt to track their tax obligations using Excel spreadsheets or paper records. This approach has significant drawbacks:

- **No automatic exchange rates**: You must manually look up the CBSL exchange rate for every foreign currency transaction on the exact date of receipt. Taxable does this automatically.
- **No progressive tax calculation**: Calculating tax across 6 progressive slabs with separate local and foreign income streams, relief allocation optimisation, and WHT credit deductions is error-prone by hand. Taxable's Tax Engine handles this in real time.
- **No deadline tracking**: Missing a quarterly payment deadline (August 15, November 15, February 15, May 15) incurs penalties starting at 10% of the instalment amount. Taxable sends reminders before each deadline.
- **No document management**: Paper receipts get lost. Digital files are scattered across folders. Taxable links documents directly to the income, expense, or payment record they support.
- **No filing document generation**: You must manually compile all data into the format the IRD requires. Taxable generates the Statement of Estimated Tax (SET) and year-end return with one click.

### vs. Hiring a Tax Consultant Alone

Tax consultants provide valuable professional advice, but the typical engagement has friction:

- **Cost**: Tax consultants in Sri Lanka charge Rs. 15,000–50,000+ per annual filing, depending on complexity. For freelancers with foreign income or investors with multiple income streams, costs are at the higher end.
- **Data gathering burden**: Before your consultant can begin, you need to organise all income records, expense receipts, payment proofs, and supporting documents. This often takes days of work each year.
- **Year-end scramble**: Most taxpayers only engage their consultant at filing time. By then, potential deductions may have been missed, receipts lost, and quarterly payments delayed.

Taxable at Rs. 5,900/year complements your consultant. You maintain organised records year-round. At filing time, you hand your consultant a complete, ready-to-review package. They spend less time on data gathering and more time advising you  potentially reducing their fees as well.

### vs. Generic Accounting Software

General-purpose accounting software (e.g., QuickBooks, Xero, Zoho Books) is designed for business bookkeeping, not personal tax management under Sri Lankan law. Key differences:

- **Sri Lankan tax law**: Taxable implements the Inland Revenue Act No. 24 of 2017 directly  progressive tax slabs, personal relief, qualifying payment deductions, WHT credits, SET generation, and quarterly payment schedules.
- **Individual focus**: Taxable is designed for individual taxpayers, not businesses. It handles personal reliefs, mixed business/personal expense allocation, and multiple income stream types that individuals face.
- **CBSL exchange rates**: Automatic conversion using official Central Bank rates for the date of receipt, as the IRD requires.
- **Filing document generation**: One-click generation of the Statement of Estimated Tax and year-end return in the format the IRD expects.

### vs. Taking No Action

If your annual income exceeds Rs. 1,800,000, you are legally required to file a tax return. Consequences of non-compliance include:

- Late filing penalty starting at Rs. 50,000 under the Inland Revenue Act No. 24 of 2017
- Additional penalties for continued non-compliance
- Interest on unpaid tax
- The IRD is actively increasing enforcement and compliance initiatives

Taxable makes compliance straightforward  record transactions as they happen, and the platform handles calculations, deadlines, and document generation.

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## 10. Company Information

- **Company**: WealthyIslander
- **Location**: Colombo, Sri Lanka
- **Website**: https://taxable.lk
- **Application**: https://app.taxable.lk
- **Support email**: support@taxable.lk
- **Privacy inquiries**: privacy@taxable.lk
- **Legal inquiries**: legal@taxable.lk
- **Social**: https://x.com/taxabordelk

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## 11. Links

- Home: https://taxable.lk
- Features: https://taxable.lk/features
- Use Cases: https://taxable.lk/use-cases
- Security: https://taxable.lk/security
- Blog: https://taxable.lk/blog
- Pricing: https://taxable.lk/#pricing
- About: https://taxable.lk/about
- Privacy Policy: https://taxable.lk/privacy
- Terms of Service: https://taxable.lk/terms
- Application: https://app.taxable.lk