Sri Lanka WHT Calculator
(Rates effective from April 1, 2025)
Calculation Results
Calculation details will appear here.
WHT Rates (Effective April 1, 2025)
| Type of Payment | WHT Rate | Notes |
|---|---|---|
| Payments to non-residents for land, sea, air transport, or telecom services | 2% | Sec. 85(2) |
| The sale price of gems at auctions conducted by the National Gem & Jewellery Authority | 2.5% | |
| Service fees to resident individuals (Teaching, lecturing, professional, etc.) | 5% | Applies if monthly payment exceeds Rs. 100,000. Tax is on the full payment. |
| Interest or discount income (resident/non-resident) | 10% | Increased from 5%. |
| Rent paid to a resident individual | 10% | Applies if aggregate monthly rent exceeds Rs. 100,000. Tax is on the full payment. |
| Winnings from lottery, rewards, betting, or gambling | 14% | |
| Charges, natural resource payments, or premiums | 14% | As per Section 195 of IRA. |
| Royalties (as defined under Section 195 of the IRA) | 14% | |
| Rent paid to a non-resident person | 14% | |
| Service fees or insurance premiums paid to a non-resident person | 14% | |
| Dividends (final withholding tax) | 15% |
Key Exemptions
Withholding Tax will not be applicable when:
- Payments are made by the Sri Lanka Government, local authorities, and Government Departments (but not Public Corporations, Universities, etc.).
- Payments are made by individuals, unless the payments are made in conducting a business.
- Interest is paid to a financial institution on ordinary loans and advances.
- Interest or discount is paid on Government Securities (Treasury Bonds, Treasury Bills).
This calculator is for informational purposes only, based on regulations effective April 1, 2025. It does not constitute financial advice. Please consult with a qualified tax professional for advice specific to your situation.
Frequently Asked Questions (FAQ)
Withholding Tax is a type of income tax that is collected at the source. The entity making the payment (the 'withholding agent') deducts the tax *before* paying the recipient and remits the tax amount directly to the government.
A 'withholding agent' is the person or entity responsible for deducting the WHT from a payment. It is their legal duty to retain the tax and credit it to the Commissioner General of Inland Revenue within the stipulated time.
Both are taxes collected at the source. WHT typically applies to a broader range of specific payments like service fees, rent, and royalties. Advance Income Tax (AIT) is primarily applied to recurring income like dividends and interest and is often treated as a final tax for individuals.
Yes, as of April 1, 2025, resident individuals with a total assessable income not exceeding Rs. 1.8 million per year can submit a self-declaration to their financial institution to be exempted from WHT on interest income.
