If you are an employer in Sri Lanka, one of your most important legal obligations is to deduct, remit, and report Advance Personal Income Tax (APIT) on your employees’ salaries. Getting the deadlines wrong — even by a day — can trigger significant penalties from the Inland Revenue Department.
This guide covers every APIT deadline you need to know for Y/A 2025/2026, what you must file and when, and how to do it through the IRD e-Services portal.
If you’re an employee looking to understand how APIT affects your take-home pay, use our free APIT / PAYE Calculator → for instant results.
What Is APIT and Who Must Deduct It?
APIT (Advance Personal Income Tax) — formerly called PAYE — is a tax withheld by employers from employees’ salaries and remitted to the IRD each month. It is governed by Section 83 of the Inland Revenue Act No. 24 of 2017.
Every employer must:
- Deduct APIT from each eligible employee’s monthly salary
- Pay the deducted amount to the IRD by the 15th of the following month
- File an annual APIT Return by 30 April each year
- Issue a T10 Certificate (Certificate of Tax Deduction) to each employee by 30 April
APIT applies to all employees whose annual employment income exceeds LKR 1,800,000 (the personal relief threshold for Y/A 2025/2026 — equivalent to LKR 150,000 per month).
APIT Deadlines at a Glance — Y/A 2025/2026
| Obligation | Deadline | Frequency |
|---|---|---|
| Monthly APIT payment to IRD | 15th of the following month | Monthly |
| April 2025 payment | 15 May 2025 | — |
| May 2025 payment | 15 June 2025 | — |
| (and so on through March 2026) | 15th of each month | — |
| Annual APIT Return (employer) | 30 April 2026 | Annual |
| T10 Certificates to employees | 30 April 2026 | Annual |
| Employee Income Tax Return (Y/A 2025/26) | 30 November 2026 | Annual |
Monthly APIT — How It Works
Calculating APIT
APIT is calculated using the cumulative method, based on IRD Tax Tables published each April. For Y/A 2025/2026, the tax slabs are:
| Annual taxable income | Tax rate |
|---|---|
| Up to LKR 1,800,000 | 0% (nil) |
| LKR 1,800,001 – LKR 2,800,000 | 6% |
| LKR 2,800,001 – LKR 3,800,000 | 12% |
| LKR 3,800,001 – LKR 4,800,000 | 18% |
| LKR 4,800,001 – LKR 5,800,000 | 24% |
| LKR 5,800,001 – LKR 6,800,000 | 30% |
| Above LKR 6,800,000 | 36% |
The employee EPF contribution (8%) is deductible before applying slabs. Qualifying payments (life insurance premiums, approved donations) are deductible up to one-third of net employment income.
Use our free APIT Calculator to compute the correct monthly deduction instantly — just enter the basic salary and allowances.
Paying APIT to the IRD
Each month, after deducting APIT from all employees:
- Log in to IRD e-Services at ird.gov.lk
- Go to Payments → APIT Payment
- Enter the total APIT collected for the month
- Make payment via online bank transfer, credit card, or approved bank
- Deadline: 15th of the month following deduction
Payment reference codes for APIT in Y/A 2025/2026: use code 26080 for standard APIT payments (refer to the IRD Tax Calendar 2026 for monthly reference codes).
Annual APIT Return — Deadline: 30 April
Every year, employers must file an Annual APIT Return by 30 April, covering all APIT deductions made during the Year of Assessment (April to March).
For Y/A 2025/2026, the annual APIT return deadline is: 30 April 2026.
What the annual return includes:
- A schedule of all employees, with their TIN, total remuneration, deductions, and APIT withheld
- Total APIT remitted to IRD during the year
- Any adjustments or corrections
How to file the Annual APIT Return:
- Log in to IRD e-Services
- Go to Returns → APIT Return
- Select Year of Assessment 2025/2026
- Upload or enter employee-level data (name, TIN, gross income, EPF, qualifying payments, APIT deducted)
- Review the total and submit
- Download the acknowledgement receipt
T10 Certificate — Issue to Employees by 30 April
The T10 Certificate (also called APIT/T10 — Certificate of Income Tax Deductions) must be issued to every employee from whom APIT was deducted, by 30 April of the following year.
For Y/A 2025/2026: issue T10 certificates to all employees by 30 April 2026.
What the T10 certificate shows:
- Employee’s name and TIN
- Total employment income (cash and non-cash benefits)
- Total APIT deducted during the year
- Employer’s TIN and signature
Employees use the T10 to file their personal income tax return by 30 November. Without it, they cannot reconcile their APIT credits.
Updated T10 format for Y/A 2025/2026:
The IRD updated the T10 form for 2025/2026 to include a separate field for the employee’s TIN and a reorganised column layout. Ensure your payroll system uses the latest format from ird.gov.lk.
Penalties for Missing APIT Deadlines
The Inland Revenue Act prescribes strict penalties for employers who fail to deduct, remit, or report APIT correctly.
Failure to deduct APIT:
The employer becomes personally liable for the tax that should have been deducted. IRD can recover it from the employer directly.
Late monthly payment (after the 15th):
Interest accrues from the due date. The IRD may also issue a default assessment.
Late annual return (after 30 April):
- Minimum penalty: LKR 50,000
- Additional: 5% of APIT payable + 1% per month of delay
Failure to issue T10 to employees:
Penalties under the Inland Revenue Act and potential IRD audit.
Important: Even if you cannot pay the full amount on time, file the return on the due date. Filing late is penalised less severely than not filing at all.
Special Cases
Employees earning in foreign currency
If an employee receives salary in USD, GBP, EUR or other foreign currency from a foreign employer, APIT is calculated using the Central Bank of Sri Lanka (CBSL) buying rate for the month the income is received. Use IRD Tax Table No. 08 for such cases.
Lump-sum payments (bonuses, gratuity)
Special rules apply under Tax Table No. 02. The lump sum is added to the estimated annual salary, the revised annual APIT is calculated, and the incremental tax attributable to the lump sum is deducted in that month.
IT/BPO employees
IT and BPO companies were taxed at 0% until 31 March 2025. From 1 April 2025, corporate tax on IT/BPO companies increased to 15%. However, employee APIT for IT/BPO staff follows the same individual tax slabs as all other employees.
Employee Obligations After Receiving T10
Once you receive your T10 from your employer, you must:
- Log in to IRD e-Services
- File your Individual Income Tax Return by 30 November 2026
- The APIT deducted (shown on T10) appears as a credit against your total tax liability
- If APIT exceeded your actual tax liability, you can claim a refund through the portal
Use our Income Tax Calculator for 2025/2026 to check whether you will owe additional tax or receive a refund before filing.
APIT Deadline Calendar — Y/A 2025/2026
| Month | Salary Month | APIT Payment Deadline |
|---|---|---|
| May 2025 | April 2025 | 15 May 2025 |
| June 2025 | May 2025 | 15 June 2025 |
| July 2025 | June 2025 | 15 July 2025 |
| August 2025 | July 2025 | 15 August 2025 |
| September 2025 | August 2025 | 15 September 2025 |
| October 2025 | September 2025 | 15 October 2025 |
| November 2025 | October 2025 | 15 November 2025 |
| December 2025 | November 2025 | 15 December 2025 |
| January 2026 | December 2025 | 15 January 2026 |
| February 2026 | January 2026 | 15 February 2026 |
| March 2026 | February 2026 | 15 March 2026 |
| April 2026 | March 2026 | 15 April 2026 |
| Annual APIT Return + T10 | Y/A 2025/2026 | 30 April 2026 |
Frequently Asked Questions
Do I need to file an APIT return if I have only one employee below the tax threshold?
If no APIT was deducted (because all employees earned below LKR 150,000/month), you are generally not required to file an APIT return. However, it is advisable to confirm this with the IRD or your tax advisor.
What is the difference between APIT and the employee’s income tax return?
APIT is a monthly advance deduction made by the employer. The employee’s annual income tax return (filed by 30 November) reconciles the total APIT deducted against the actual annual tax liability. If APIT was more than the tax owed, the employee gets a refund.
Our company uses a payroll software — does it generate the T10 automatically?
Most modern payroll systems (QuickBooks, Xero, Tally) can generate T10-compliant reports. Ensure the system is updated to use the revised 2025/2026 T10 format with the employee TIN field.
Can the APIT return deadline be extended?
The IRD occasionally grants extensions in special circumstances. Monitor ird.gov.lk for any gazette notifications. As of the date of this post, no extension has been announced for Y/A 2025/2026.
Need Help with APIT Compliance?
Managing monthly APIT calculations, remittances, annual returns, and T10 issuance across a team is time-consuming. Our payroll and tax compliance team at GDP Consultants can take this off your plate.
Services include:
- Monthly APIT calculation and remittance
- Annual APIT return filing
- T10 certificate preparation for all employees
- Payroll outsourcing (EPF, ETF, APIT)
Book a consultation →
Call / WhatsApp: +94 071 920 4903
Email: info@taxcalculator.lk
Prepared by Lal Kumarasiri, Chartered Accountant (ACA, MAAT), GDP Consultants Pvt Ltd. Verify the latest deadlines and forms at ird.gov.lk or call IRD on 1944. Updated for Y/A 2025/2026.
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