DEPARTMENT OF INLAND REVENUE

NOTICE TO EMPLOYERS
PAYE Tax Tables Year of Assessment 2011/2012
PAYE Tax Tables applicable with effect from April 1, 2011 for making monthly income tax deductions from the remuneration of employees are given below, in a summarized format. Printed detailed tax tables will be dispatched to all registered employers in the near future.

TAX TABLE NO. 1

Monthly Tax Deductions from Regular Profits (All employees who are resident or citizen of Sri Lanka)
Monthly Remuneration

Tax
Nil 4% of Monthly Remuneration less Rs. 2,000/8% of Monthly Remuneration less Rs. 5,667/12% of Monthly Remuneration less Rs. 11,000/16% of Monthly Remuneration less Rs. 18,000/20% of Monthly Remuneration less Rs. 26,667/24% of Monthly Remuneration less Rs. 38,667/-

Monthly Remuneration not exceeding Rs. 50,000/Monthly Remuneration exceeding Rs. 50,000/-, but not exceeding Rs. 91,667/Monthly Remuneration exceeding Rs. 91,667/-, but not exceeding Rs. 133,333/Monthly Remuneration exceeding Rs. 133,333/-, but not exceeding Rs. 175,000/Monthly Remuneration exceeding Rs. 175,000/-, but not exceeding Rs. 216,667/Monthly Remuneration exceeding Rs. 216,667/-, but not exceeding Rs. 300,000/Monthly Remuneration exceeding Rs. 300,000/-

The Table No. 1 is applicable for deduction of tax from non-citizen employees as well, if they are resident in Sri Lanka under the provisions of Inland Revenue Act.

TAX TABLE NO.4

Deduction of tax from remuneration made to non-citizen employees. The following Tax Table is applicable for deduction of tax from non-citizen employees who are nonresident in Sri Lanka.

Monthly remuneration up to Rs. 8,333/exceeding Rs. 8,333/- but not exceeding Rs. 50,000/exceeding Rs. 50,000 but not exceeding Rs. 91,667/exceeding Rs. 91,667/-, but not exceeding Rs. 133,333/exceeding Rs. 133,333/- but not exceeding Rs. 175,000/exceeding Rs. 175,000/-, but not exceeding Rs. 258,334/Above 258,334/Nil

Tax

4% of Monthly Remuneration less Rs. 333/8% of Monthly Remuneration less Rs. 2,333/12% of Monthly Remuneration less Rs.6,000/16% of Monthly Remuneration less Rs. 11,333/20% of Monthly Remuneration less Rs. 18,333/24% of Monthly Remuneration less Rs. 28,666/-

TAX TABLE NO. 6

Tax on Tax Rates Instances where tax on tax arise (i) (ii) When an employer or any other person settles income tax of an employee, without it being deducted from his salary. Reimbursement by the employer of Income Tax already deducted and paid from employees salary.

Rate of tax on tax (in respect employees who are resident) Monthly Tax (Rs.) Tax on Tax Rate

01 1601 4601 8801 14,001 Over 26,667

1600 4600 8800 14,000 26,667

4.2% 8.7% 13.6% 19.0% 25.0% 31.6%

TAX TABLE NO. 7

Rates for the deduction of tax from the remuneration of a Chairman or a Director or a non-Executive Director of a Company, not included in the payroll for PAYE purpose, or from the remuneration of any individual employed by more than one employer (other than the main employer) 10% where the monthly remuneration is less than Rs.25,000/-; and 16% where the monthly remuneration is not less than Rs.25,000/-.

For any further clarification, please contact: PAYE Branch Secretariat - Telephone: 011-2302249, 011-2302246, 011-3009429 - Telephone: 011-2338635, 011-2338570

Commissioner General of Inland Revenue TAXES - FOR A BETTER FUTURE