Skip to main content
Contact Us
Submit RFP

      Tax Updates from KPMG in Sri Lanka

      Your quick updates on Sri Lanka’s latest tax changes and developments.

      • January 6th 2025  - Please find attached synopsis of the Strategic Development Projects (Amendment) Act, No. 26 of 2025 has been certified by the Speaker on 17 December 2025 and published as a Supplement to Part II of the Gazette of the Democratic Socialist Republic of Sri Lanka on 26 December 2025, giving effect to the proposals announced in the 2026 Budget Speech by His Excellency the President. 
        Download

      • December 31st 2025  - Please find attached synopsis of the Social Security Contribution Levy (Amendment) Act No 24 of 2025 that has been certified by the Speaker on 17 December 2025 and published as a Supplement to Part II of the Gazette of the Democratic Socialist Republic of Sri Lanka on 26 December 2025.
        Download

      • December 15th 2025  - Please find attached the Notice issued dated 17th November 2025, the Department of Inland Revenue (DIR) has announced that the implementation of the new Tax Invoice format has been postponed to 01 April 2026.
        Download

      • December 6th 2025  - Please find attached the Notice issued dated 28th November 2025, the Department of Inland Revenue (DIR) has announced a further extension of time regarding the filing of income tax returns for the Year of Assessment 2024/2025.
        Download

      • December 5th 2025  - Please find attached the official communication from the Ministry of Finance regarding the declaration of the “Disaster Recovery Project to facilitate people affected by Cyclone-Ditwa” as a Specified Project.
        Download

      • December 3rd 2025  - Please find attached The Gazette Notification No 2463/ 05 dated 17 November 2025 in English Language in relation to the VAT invoice format.  The said format is effective from 01 January 2026. 
        Download

      • December 1st 2025  - Please find attached The Gazette Notification No 2463/ 05 dated 17 November 2025 in Sinhala & Tamil languages prescribing the format to the VAT Invoice (attached).
        As per Section 20 of the Value Added Tax Act No 14 of 2002 and amendments thereto Commissioner General of Inland Revenue (CGIR), has the power to prescribe the format to the Tax Invoice.
        The Gazette Notification in English is yet to be published in the public domain.
        Download

      • November 30th 2025  - Please find attached the bill to amend the Colombo Port City Economic Commission Act, No. 11 of 2021 (CPCEC Act), In line with the policy statement delivered by His Excellency the President during the 2026 Budget, aimed at establishing a transparent framework for granting tax exemptions.
        Download

      • November 28th 2025  - Please find attached the notice issued by the Inland Revenue Department (IRD), PN/IT/2025/02 dated November 2025, granting additional time until 08 December 2025 for filing the Return of Income for the Year of Assessment 2024/25.
        Download

      • November 12th 2025  - Please use the link below to access the synopsis of the Bill to Amend the Strategic Development Projects Act No 14 of 2008 and amendments thereto. 
        Download

      • October 24th 2025  - Please use the link below to access the notification issued dated 14 October 2025 to be effective from 15 October 2025 on the Ministry of Finance website to amend the Regulation concerning the capital goods importation and local purchase under the bonded warehouse scheme, originally issued under Gazette Notification No. 2083/33 dated 10 August 2018. 
        Download

      • October 23rd 2025  - Please use the link below to access the notice issued by the Inland Revenue Department (IRD) has issued Public Notice PN/GP/2025-01 dated 08 October 2025, reminding all taxpayers of their obligation to update any changes in personal or business information previously provided to the IRD. 
        Download

      • October 8th 2025 - Please find attached herewith the notice issued by The Inland Revenue Department (IRD) dated 01 October 2025 (published on the IRD website on 08 October 2025)  informing the postponement of the implementation of Value Added Tax (VAT) on supply of  services through electronic platform by non-resident providers to 01 April 2026, pending parliamentary approval
        Download

      • October 3rd 2025 - Please find attached herewith the Bill to amend the Social Security Contribution Levy Act No. 25 of 2022 which has been ordered to be published by the Minister of Finance, Economic Stabilization and National Policies in the Government Gazette on 01 October 2025.
        Download

      • October 3rd 2025 - Please find attached herewith the regulation issued by the Inland Revenue Department (IRD) as per Section 22 (5) (f) of the Value Added Tax Act No 14 of 2002 and Amendments thereto (VAT Act) pertaining to the introduction of the Risk Based Refund Scheme, which is effective from 1 October 2025.
        Download

      • October 1st 2025 - Please find attached herewith the Notice published by the Inland Revenue Department (IRD) No. PN/VAT/2025-03 dated 22 September 2025, relating to the electronic filing of VAT Returns and Schedules. A copy of the notice is attached herewith for your reference.
        Download

      • October 1st 2025 - Please find attached the following public notices recently issued by the Inland Revenue Department (IRD) on their social media in relation to the Simplified Value Added Tax (SVAT) scheme.
        Download

      • September 22nd 2025 - Please find attached herewith the synopsis of Regulation No. 1 of 2025 (Guidelines on the Grant of Exemptions or Incentives to Businesses of Strategic Importance). This Regulation was published in the Ministry of Finance website (allocated Gazette Notification No. 2454/62 dated 20th September 2025).
        Download

      • September 16th 2025 - Please find attached The Inland Revenue Department (IRD) notice No PN/PYMT/2025-01 dated 10 September 2025 requesting all taxpayers to verify tax credits relating to payments made via the Alternative Tax Payment System (ATPS) during the Covid-19 pandemic years 2020 and 2021.
        Download

      • July 30th 2025 - Important Tax Filing Update: As per Section 90 of the Inland Revenue Act, No. 24 of 2017 (as amended), taxpayers who are required to pay income tax by installments must submit their Statement of Estimated Tax Payable (SET) for the Year of Assessment 2025/2026 by 15 August 2025.
        Download

      • July 7th 2025 - Attached herewith the synopsis by way of Frequently Asked Questions (FAQs) of the new Value Added Tax (VAT) Regulation on non-resident persons supplying services to consumers in Sri Lanka via electronic platforms. 
        The Gazette Notification No 2443/30 dated 01 July 2025 has been issued and the said Regulation will be effective from 01 October 2025.
        Download

      • April 30th 2025 - Please find attached herewith the circular no SEC/2025/01 dated 28 April 2025 uploaded on the website of the Department of Inland Revenue (DIR) on providing clarity on certain issues raised by banks, financial institutions, and resident individuals on the self declaration mechanism (for individuals who has taxable income less than LKR 1.8mn per annum). 
        Download

      • April 21st 2025 - Please find attached the Bill to amend the Value Added Tax Act 14 of 2002 issued dated 21 February 2025 has been enacted as the Value Added Tax (Amendment) Act No 04 of 2025 (Amending Act) with certain Committee Stage Amendments and was certified by the Speaker on 11 April 2025 (the date of the commencement of the Amending Act). Further to the Amending Act, the Department of Inland Revenue (DIR) has issued a notice PN/VAT/2025-01 (Revised) dated 17 April 2025 providing the salient features of the Amending Act.
        Download

      • April 16th 2025 - Please find attached herewith the notice no PN/APIT/2025-01 dated 11 April 2025 uploaded on the website of the Department of Inland Revenue (DIR) on the updated A.P.I.T./T-10 New Certificate (w.e.f 01 April 2025) for the Year of Assessment 2024/2025.
        Download
      • April 07th 2025 - Further to the announcement made by The President of the United States of America Donald Trump on 3 April 2025 regarding the imposition of reciprocal tariffs to address the US trade deficit, follow the below link for the summary prepared by KPMG US.
        Download

      • April 02nd 2025 - Further to the Inland Revenue (Amendment) Act No 02 of 2025, follow the below link for the circulars have been uploaded by the Department of Inland Revenue.
        Download

      • March 28th 2025 - Further to our Tax Alert dated 25 March 2025, The Bill to amend the Inland Revenue Act No 24 of 2017 issued dated 21 February 2025 has been enacted as the Inland Revenue (Amendment) Act No 02 2025 (Amending Act) and was certified by the Speaker on 20 March 2025.  
        Download

      • March 25th 2025 - Further to our Tax Alert dated 25 March 2025, The Bill to amend the Inland Revenue Act No 24 of 2017 issued dated 21 February 2025 has been enacted as the Inland Revenue (Amendment) Act No 02 2025 (Amending Act) and was certified by the Speaker on 20 March 2025.  
        Download

      • February 25th 2025 - A Bill to amend the Value Added Tax (VAT) Act No 14 of 2002 was issued on 21 February 2025. The Bill includes tax proposals that were pronounced in Parliament by the Hon. President on 18 December 2024.
        Download

      • February 25th 2025 - A Bill to amend the Inland Revenue Act No. 24 of 2017 was published on 21 February 2025. The Bill includes tax proposals that were pronounced in Parliament by the Hon. President on 18 December 2024 . Income Tax proposals referred to in the Budget Speech 2025 such as the revision of the Capital Gains Tax (CGT) rate, removal of the lodgment of Statement of Estimated Tax Payable, methodology of computation of installment payments, etc. are not part of this Bill.
        Download

      • February 05th 2025 - Further to our Tax Alert dated 19 December 2024, please note that on 31 January 2025, notifications were issued and subsequently uploaded on both the Department of Imports and Export Control website and the Ministry of Finance website. These notifications address the removal of restrictions on the importation of motor vehicles, including cars and vans for personal use, buses for public passenger transport, vehicles for goods transport, special purpose vehicles, trishaws, bicycles, and other non-motorized vehicles. The applicable taxes on these motor vehicles have also been updated accordingly.
        Download

      • January 06th 2025 - Please find attached herewith the release from the Inland Revenue Department on its much-anticipated guidance on Advance Pricing Agreements (APAs) for international transactions.

        This groundbreaking initiative represents a major development in Sri Lanka's tax landscape, aligning the country with global best practices and establishing a more predictable and transparent framework for transfer pricing (TP) matters.
        Download

      • January 06th 2025 - Please find attached herewith the Gazette notification issued under section 86 (7) of the Inland Revenue Act, No 24 of 2017 , as amended by the Inland Revenue ( Amendment) Act, No 04 of 2023, which specifies the procedure of withholding the tax from any payment made to a non – resident person.

        Licensed Commercial Banks and Authorized Dealers  Engaged in outward remittances and withholding agents who make outward remittances shall comply with such procedure. 
        Download

      • December 19th 2024 - Significant Tax Reforms were announced by the Honorable President His Excellency Anura Kumara Dissanayake in his speech on 18th December 2024 addressing the Parliament.

        Snapshot of the Key Tax Reforms are as follows;
        Download

      • December 16th 2024 - A notification regarding Value Added Tax (VAT) refunds for the Legacy Period (i.e., periods prior to 31 December 2015) dated 12 December 2024, has been published on the website of the Department of Inland Revenue (DIR).

        As per the notice, if there are any valid refund requests made to the periods prior to 31 December 2015, and if such refunds have not yet been received, a written request, signed by the Managing Director, should be forwarded to the Commissioner.

        The notice further states that request made after 31 December 2024 would not be considered under any circumstances.

        Attached herewith the notice uploaded in the DIR website.
        Download

      • December 16th 2024 - The Department of Inland Revenue (DIR) has issued a notice (PN/IT/2024-03) dated 11 December 2024 providing further clarification on the income tax liability on interest or discount from Treasury Bills or Treasury Bonds.

        Attached herewith the notice uploaded in the DIR website.
        Download

      • December 5th 2024 - The Department of Inland Revenue (DIR) has issued a notice (PN/IT/2024-02) dated 03 December 2024 extending the deadline for filing Income Tax Returns for the Year of Assessment 2023/2024.

        Taxpayers who submit their returns on or before 07 December 2024 will be relieved of penalties, criminal proceedings, and default assessments.

        DIR officials will be available at IRD offices until 06 December 2024 to provide technical assistance for online filing.

        Attached herewith the notice uploaded in the DIR website.
        Download

      • November 26th 2024 - Please find attached herewith the Notice issued by the Commissioner General Inland Revenue in relation to the submission of the Income Tax Return for the Year of Assessment 2023/24. 

        As per the notice, since 30 November 2024 is falling on a Saturday, the Head Office and the Regional Offices will be opened as a usual working day.
        Download

      • September 11th 2024 - Please find attached herewith the Gazette Notification bearing No. 2400/40  (dated 06 September 2024) uploaded to the website of the Department of Government Printing.

        The Gazette amends the Rules made by the Tax Appeals Commission under S.8 of the Tax Appeals Commission Act No. 23 of 2011 and Amendments thereto, and published in Gazette Extraordinary No. 1760/4 dated 28 May 2012. Download

      • June 17th 2024 - In March 2023, the IMF Executive Board approved a 48-month extended arrangement under the extended fund facility, to support Sri Lanka's economic policies and reforms.

        The IMF Executive Board expressed its views on 12 June 2024, on the staff level report completed on 29 May 2024, following the discussions with Sri Lankan officials in March.

        This tax alert seeks to highlight the salient features of the new tax measures discussed and included in the IMF staff report on the second review.
        Download

      • May 31st 2024 - Further to the Gazette Notification No. 2376/25 issued on 21 March 2024 (you may refer KPMG Tax Alert issued on 15 April 2024) in relation to the information to be shared on a regular basis to the Commissioner General of Inland Revenue (CGIR), we attach herewith the Notice issued by the Department of Inland Revenue dated 21 May 2024.
        Download

      • April 25th 2024 - The Commissioner General of Inland Revenue (CGIR) has prescribed the following methods for tax payments as per the Gazette Notification no 2378/33 dated 04 April 2024 issued under Section 145 (3) of the Inland Revenue Act No 24 of 2017 and Amendments thereto :- 
        Download

      • April 15th 2024 - Please find attached herewith the Gazette Notification No. 2376/25 (dated 21 March 2024) uploaded on the website of the Department of Government Printing  :- 
        Download

      • March 23rd 2024 - The Social Security Contribution Levy (Amendment) Act No 15 of 2024 (Amendment Act) was certified by the Speaker on 20 March 2024. Synopsis of the Amendment Act is as follows :- 
        Download

      • March 23rd 2024 - The Value Added Tax (Amendment) Act No.16 of 2024 (Amendment Act) was certified by the Speaker on 20 March 2024. Following is the summary of the Amendment Act: 
        Download

      • February 12th 2024 - Further to the Gazette Notification No.2334/21 dated 31st May 2023 which mandates a “resident person” to obtain a TIN (Taxpayer Identification Number) and the notice of registration issued by way of a web notice in December 2023, the DIR has issued a new web notice dated 30th January 2024 (Ref No: PN/TIN-REG/2024-01) giving clarity as to who is considered a “resident person” for purposes of tax in Sri Lanka. The said Notice also clarifies the circumstances a “non-resident person” is required to obtain a TIN.
        Download

      • January 12th 2024 - The Department of Inland Revenue has issued Circular No. SEC/2024/E/01 dated 04 January 2024 on the registration of certain industries under the Value Added Tax (VAT) and Simplified Value Added Tax (SVAT) scheme.
        Download

      • January 6th 2024 - A Bill to amend the Social Security Contribution Levy Act No. 25 of 2022 was issued on 04 January 2024 by the Minister of Finance, Economic Stabilization and National Policies. Synopsis of the Amending Bill is as follows :-
        Download

      Connect With Us

      Partner with KPMG in Sri Lanka to explore new opportunities and solve challenges with expert guidance. Our teams are ready to support your priorities and contribute to your organization’s continued success.

      Contact Us
      CTA Image