Being your own boss is rewarding — but it also comes with responsibilities, especially when it comes to taxes. If you’re self-employed in Sri Lanka, filing your income tax return with the Inland Revenue Department (IRD) is a must.
This step-by-step guide explains how to file your self-employed tax return in Sri Lanka, what documents you need, and common mistakes to avoid.
🧾 Who Is Considered Self-Employed in Sri Lanka?
According to the IRD, you are considered self-employed if you:
- Run your own business or consultancy
- Work as a freelancer (e.g., designer, IT, tutor, writer)
- Earn income from commissions, professional fees, or rent
- Do not earn a fixed salary (i.e., not under PAYE)
📌 Step 1: Register with the IRD
Before filing, you must have a Taxpayer Identification Number (TIN).
How to register:
- Visit https://www.ird.gov.lk
- Click “Register as a Taxpayer”
- Submit your NIC copy, proof of address, and business registration (if applicable)
Once approved, you’ll get access to the e-Services portal to file your return.
🧮 Step 2: Calculate Your Income and Expenses
You need to declare:
- Total income (freelance fees, rent, commissions, etc.)
- Allowable expenses (rent, internet, stationery, travel, etc.)
- Net Profit = Income – Expenses
Use www.TaxCalculator.lk to estimate your tax liability.
📤 Step 3: File Your Tax Return Online
Key dates:
- Assessment Year: 1st April – 31st March
- Filing deadline: Usually 30th November of the following year
How to file:
- Log in to https://eservices.ird.gov.lk
- Go to Return Submission
- Select “Income Tax Return (Individuals)”
- Fill in income, expenses, and upload any supporting docs
- Submit and keep the acknowledgment
💰 Step 4: Pay the Tax Due
After filing, you’ll receive a tax summary. You can pay via:
- Bank transfer
- Online payment portals (like LankaQR or credit card)
- Over the counter at designated banks
🧠 Common Mistakes to Avoid
- ❌ Forgetting to include side income (like rent or freelance projects)
- ❌ Not keeping invoices and expense records
- ❌ Missing deadlines and paying late penalties
🤝 Need Help?
If you’re unsure how to file, estimate your tax, or organize your records, visit TaxCalculator.lk or contact us directly. We can assist you in:
- Estimating your tax
- Filing on time
- Claiming deductions legally
🟩 Conclusion
Filing tax as a self-employed person in Sri Lanka may sound complex — but with the right tools and guidance, it’s manageable. Start by registering with the IRD, keep track of your income and expenses, and use TaxCalculator.lk to simplify the process.
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