New Tax Alert - Taxing the freelancers

[dot.Net]

Who are taxed ?

Individuals engaged in sole-proprietorship businesses/freelance gigs are taxed on their income at the personal tax rates. Income tax-free threshold for every Sri Lankan citizen/ tax resident is Rs. 1.2 million per year. This means, if your total income is below than the threshold per year you are not required to pay income tax. If you earn more than that you are required to open a tax file and pay tax. Rates are as follows:

Individuals – Progressive Tax Rates

Taxable amount LKR Rate

• First 1,200,000 0%
• Next 500,000/- 6%
• Next 500,000/- 12%
• Next 500,000/- 18%
• Next 500,000/- 24%
• Next 500,000/- 30%
• Balance 36%

If, your instance, you earn Rs. 1.5 million per year by doing tuition classes and some writing gigs, you are liable to tax given annual income exceeds Rs. 1.2 million. Your taxable income will be Rs. 300,000 (Rs. 1.5 million – 1.2 million) and as depicted in the table above you are required to pay 6% of Rs. 300,000 (taxable income) as tax.

Are my foreign service earnings exempt from tax ?

Interestingly, those earning foreign income can claim a tax exemption if they render services to any person to be utilized outside Sri Lanka for which they are paid in foreign currency and the money is routed via the banking system.

For example, if you provide some consulting services to Company XYZ based in the UK for use in their foreign operations, and they remit GBP 1000 to your Sri Lankan Bank account, this foreign income is tax exempt in Sri Lanka.

Source: https://www.newswire.lk/2023/02/02/taxing-the-freelancer-who-are-taxed/

 

[Emios]

 

[dot.Net]

ප්‍රොෆිට් එකට නෙවෙයි, ඉන්කම් එකට ගහන්නේ. සැපයි

 

[Lovtus]

oka reliable source ekakda?

 

[wordpress]

ප්‍රොෆිට් එකට නෙවෙයි, ඉන්කම් එකට ගහන්නේ. සැපයි

පිස්සුද ප්‍රොෆට් එකට

Revenue vs. Income: An Overview
Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations. Revenue, also known as gross sales, is often referred to as the "top line" because it sits at the top of the income statement. Income, or net income, is a company's total earnings or profit. When investors and analysts speak of a company's income, they're actually referring to net income or the profit for the company.

 

[samsri]

bump

 

[Cypress]

පෙරබවය තමයි හිට්ලර්

මහින්ද රාජපක්ෂගේ පෙරබවය තමයි හිට්ලර් කියන්නේ.
එදා වුන දේම අද වෙනවා.

 

[dot.Net]

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මටත් කන්ෆර්ම් කරගන්න ඕන ඒක තමයි.

පිස්සුද ප්‍රොෆට් එකට

This means, if your total income is below than the threshold per year you are not required to pay income tax. If you earn more than that you are required to open a tax file and pay tax.

මෙහෙම තියෙන්නේ. ඒ කියන්නේ ඉන්කම් එකට.

 

[lovethebomb]

appaa wasala hamarai meke

 

[uthpalakalwana]

 

[topkollek]

ලියල තියෙන දේ කියවල තේරුම් ගන්න බැරි එවුන් ඉන්නවනෙ

 

[Jack_Sparrow]

oka itin LKR ayatane
online USD gena freelancers lata nahane

oka natath income tax applicable onama income ekakata
kawurut gewanne natiwa hitiya misak

kalin APIT ekath okata apply wenawa, dan APIT wenuwata PAYE widiyata wenas wela apu nisa mewata wenama danawa athi

 

[wordpress]

ඉන්කම්

ඉන්කම් කියන්නේ ප්‍රෝෆිට්. රේවෙනු කියන්නේ මුළු විකුණුම් ආදායම. මේක රෙවෙනු ටැක්ස් නෙමේ. ඉන්කම ටැක්ස්

 

[Identity]

Interestingly, those earning foreign income can claim a tax exemption if they render services to any person to be utilized outside Sri Lanka for which they are paid in foreign currency and the money is routed via the banking system.

For example, if you provide some consulting services to Company XYZ based in the UK for use in their foreign operations, and they remit GBP 1000 to your Sri Lankan Bank account, this foreign income is tax exempt in Sri Lanka.