Expat Tax Calculator
Determine your tax residency status and calculate your exact tax liability for Sri Lanka
Rates verified current
Verified 4 Oct 2026 · source
What is your citizenship status?
This determines which tax rules apply to you.
Tax Treatment by Income Type & Residency Status
The table below summarizes how different income types are taxed for residents vs non-residents under the Inland Revenue Act No. 24 of 2017.
| Income Type | Tax Resident | Non-Resident | Withholding Tax |
|---|---|---|---|
| Employment Income (SL) | Progressive 6-36% after Rs. 1.8M relief (2025/2026); Rs. 1.2M (2024/2025) | Flat 14%, no relief | APIT by employer |
| Employment Income (Foreign) | Taxable if remitted to SL | Not taxable | N/A |
| Rental Income (SL Property) | Progressive rates after relief | 14% flat rate | WHT 14% |
| Dividend Income (SL Companies) | Exempt if from quoted shares | Exempt if from quoted shares | WHT 14% on unquoted |
| Interest Income (SL) | 5% WHT (final for residents) | 14% WHT (final) | WHT at source |
| Capital Gains (SL Assets) | 10% on gain | 10% on gain | Self-assessment |
| Pension Income (Foreign) | Exempt if not remitted | Not taxable | N/A |
| Business Profits (SL PE) | Progressive rates | 14% flat rate | Quarterly payments |
Common Expat Tax Scenarios
Real-world examples showing how Sri Lanka tax rules apply to different expat situations.
Scenario 1: IT Professional on 2-Year Assignment
Profile: Indian citizen, employed by Sri Lankan tech company, 400 days in SL over 2 years.
Residency: Tax resident (183+ days in each year).
Income: LKR 6,000,000/year employment income + LKR 500,000 rental from India property.
Tax Treatment: Employment income taxed at progressive rates (6-36%) after Rs. 1.8M relief from April 2025 (no 12% slab). Indian rental income not taxable in SL if not remitted. Estimated annual tax: ~LKR 1,032,000.
Key Benefit: Personal relief of Rs. 1.8M significantly reduces tax burden compared to non-resident flat rate.
Scenario 2: Digital Nomad from UK
Profile: UK citizen, remote work for UK clients, 150 days in SL.
Residency: Non-resident (under 183 days).
Income: GBP 60,000/year from UK clients, no SL-sourced income.
Tax Treatment: No Sri Lanka tax liability. All income taxed in UK. No filing required in SL. Tourist visa sufficient for stays under 180 days.
Key Risk: If stay extends beyond 183 days, becomes tax resident and foreign income may become taxable if remitted to SL.
Scenario 3: Returning Sri Lankan After 10 Years Abroad
Profile: SL dual citizen, returning after 10 years in Australia, 200 days in SL in return year.
Residency: Tax resident (183+ days).
Income: LKR 3,000,000 SL employment + AUD 80,000 Australian consulting income.
Tax Treatment: SL employment taxed at progressive rates after Rs. 1.8M relief from April 2025 (no 12% slab). Australian consulting income taxable if remitted to SL. DTA with Australia allows foreign tax credit. Estimated SL tax: ~LKR 96,000 on SL income alone.
Key Benefit: DTA prevents double taxation on Australian income. Foreign income not remitted to SL is not taxable.
Scenario 4: Non-Resident with Sri Lanka Rental Property
Profile: Canadian citizen, owns apartment in Colombo, visits 30 days/year.
Residency: Non-resident.
Income: LKR 1,200,000/year rental income from SL property.
Tax Treatment: 14% flat rate on rental income = LKR 168,000/year. WHT of 14% deducted at source by tenant or agent. No personal relief available. No filing required if WHT covers full liability.
Key Consideration: Must ensure tenant/agent deducts correct WHT. May need to file if WHT is insufficient.
Sri Lanka Double Taxation Agreements
Sri Lanka has signed DTAs with over 40 countries. These agreements prevent double taxation and determine which country has taxing rights on specific income types.
Note: DTA availability and terms may change. Verify current status with IRD Sri Lanka before relying on DTA provisions.
Example: Expat with 200 days in Sri Lanka, Rs. 3M income (from April 2025)
Sample Inputs
What This Calculator Does
This calculator determines your Sri Lanka tax residency status and calculates your tax liability based on the Inland Revenue Act. It guides expats, digital nomads, and dual citizens through residency classification and computes taxes on both local and foreign income.
- Determines tax residency through 5-question classifier
- Calculates tax for residents vs non-residents differently
- Handles multiple income sources (employment, rental, dividends)
- Applies qualifying payments and tax credits
- Shows comparison between resident and non-resident treatment
Inputs and Assumptions
Assumptions
- - Tax year runs April 1 to March 31
- - 2025/2026 tax rates and thresholds apply by default (2024/2025 available for historical comparison)
- - Personal relief of Rs. 1.8M for residents from April 2025 (Rs. 1.2M for 2024/2025)
- - Non-resident flat rate of 14% on employment income
Frequently Asked Questions
Related Resources
Disclaimer: This calculator provides estimates based on the Inland Revenue Act No. 24 of 2017 (as consolidated up to 2025). This is for educational purposes only and does not constitute professional tax advice. For official filing, consult a licensed tax professional or the Inland Revenue Department.
Sources & methodology
Part of the Tax & Salary collection
How we calculate
Inland Revenue Department
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Methodology verified 2026-09-02 against Inland Revenue Department · Attribution: CalcLK
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