Sri Lankan PAYE Tax revision explained
A lot of Sri Lankans have been confused and ill informed about the PAYE (Pay As You Earn) tax revision which would be in effect from 1st April, 2018. So here’s a clear and proper explanation for you based on the numbers.
Following graph compares the amount of PAYE tax you need to pay based on monthly regular profits aka your monthly salary under the current and new tax scheme. As you can clearly see a large majority of Sri Lankans will pay less PAYE tax under the new scheme. But this scheme will introduce heavy taxes for people who receive very high monthly wages.
For example,
Here is a summary of the current and new PAYE tax scheme.
It is also worth taking a look at the defenition of Regular Profit (which defines the taxable portion of your salary).
You can find the new PAYE tax rates (2018/19) as well as current PAYE tax rates in detail at the following website of Sri Lanka Inland Revenue. Tax Table No: 01 should be applied to deduct tax from regular profits from employment payable to every employee during a calendar month.
