Since 1 April 2025, banks in Sri Lanka deduct 10% Withholding Tax (WHT) on all interest income — including fixed deposits, savings accounts, and recurring deposits. But if your annual income is below Rs. 1,800,000, you can avoid this deduction by submitting a self-declaration form.

Thousands of Sri Lankans are losing money they shouldn’t be. Here’s how to stop it.

What Is the Self-Declaration Form?

It’s a form issued by the IRD (Notices dated 28 March 2025 and 28 April 2025) that allows you to declare to your bank that your total annual income is below the tax-free threshold of Rs. 1,800,000. Once submitted, the bank will NOT deduct 10% WHT from your interest earnings.

Who Should Submit This Form?

You should submit the form if:

• Your total annual income from ALL sources (salary + interest + rent + everything else) is below Rs. 1,800,000
• You are a Sri Lankan resident (the 183-day rule applies)
• You have savings accounts, fixed deposits, or any interest-bearing accounts in Sri Lankan banks

You should NOT submit this form if:

• Your total annual income exceeds Rs. 1,800,000 (you are liable for tax and WHT will be credited against your tax)
• You are a non-resident (different rules apply — see our overseas Sri Lankan guide)

What Happens If You Don’t Submit It?

Your bank will automatically deduct 10% from every interest payment. For example:

• If your FD earns Rs. 100,000 interest, the bank will deduct Rs. 10,000 and you’ll only receive Rs. 90,000
• You CAN claim this Rs. 10,000 back when you file your tax return, but that means waiting months for a refund
• It’s much easier to just submit the form and keep your full interest

How to Get the Form

Three options:

1. Download from the IRD website (ird.gov.lk → Downloads section)
2. Collect from your bank branch — most banks have copies available
3. Some banks provide it through their online/mobile banking apps

How to Fill the Form — Step by Step

The form requires:

1. Your full name (as per NIC)
2. Your NIC number
3. Your TIN (Taxpayer Identification Number) — you MUST have a TIN to submit this form
4. Your address
5. Declaration that your annual income is below Rs. 1,800,000
6. Your signature and date

Important: You need to submit a SEPARATE form to each bank where you have deposits. If you have accounts at Bank of Ceylon and Commercial Bank, you submit two forms. If you have accounts at multiple branches of the same bank, check with the bank if one form covers all branches or if you need separate ones per branch.

Don’t Have a TIN Yet?

You need a TIN before you can submit the self-declaration. See our complete TIN registration guide: How to Get a TIN Number in Sri Lanka

What About Fixed Deposits Opened Before April 2025?

The 10% WHT applies to ALL interest payments made on or after 1 April 2025 — regardless of when the deposit was opened. Even if you opened a 2-year FD in 2024, interest paid after April 2025 will be subject to WHT unless you submit the form.

What About Joint Accounts?

For joint accounts, typically both account holders may need to submit declarations. Check with your bank for their specific requirements.

What About Minor Children’s Accounts?

Parents or guardians can submit declarations on behalf of minors when required for tax purposes.

Calculate If You Actually Need This Form

Not sure if your income is below Rs. 1,800,000? Use our free calculator:

👉 Calculate Your Total Income — Free 👈

Need Help?

GDP Consultants can help you determine if you should submit the form, prepare it correctly, and handle your complete tax situation.

📞 Get Help Now | ☎️ +94 71 920 4903