Tax Obligations for Online Earners in Sri Lanka

All online income is taxable under the Inland Revenue Act No. 24 of 2017. The tax-free threshold is approximately LKR 1.2 million per year. Income above this is taxed progressively from 6% to 36%. Register with the Inland Revenue Department (IRD) for a TIN, keep records of all income and business expenses, and file annual returns by September 30th. Business expenses like computer equipment, internet bills, and software subscriptions are deductible.

This is general information, not tax advice. Consult a registered Sri Lankan tax professional for your specific situation.

Once you're earning, revisit the payment methods guide to plan how you receive and track income for tax purposes.