On 9 May 2023, the Sri Lankan Inland Revenue Department (IRD) released Circular No: SEC/2023/E/03. This circular provides detailed guidelines for calculating income tax for the assessment year beginning on 1 April 2022. The circular takes into consideration the amendments introduced by the Inland Revenue (Amendment) Act No. 45 of 2022, which require the computation of income tax payable for two separate 6-month periods during the tax year.
The Circular includes guidance of calculating income tax of Individuals, Companies, including Trusts, Unit Trusts or Mutual funds, NGOs, Partnerships, Charitable Institutions, Employees Trust Funds, Provident, Pension or Gratuity Fund, and Termination Funds.
