Today, the Presidential Media Division announced a new mandate, requiring all citizens aged 18 and above to register for income tax starting February 1, 2024.
While this registration is compulsory for everyone, it’s crucial to understand that not all registered individuals will be obligated to pay taxes.
The Presidential Media Division has clarified that only those earning a monthly income exceeding Rs. 100,000 will be liable for income tax.
Even for individuals falling below the taxable income threshold, obtaining a tax registration number will be essential for various routine transactions, such as:
- Opening a current bank account
- Applying for building plan approval
- Registering a motor vehicle
- Renewing licenses
- Registering land ownership
Obtaining a tax number is a straightforward process.
Individuals aged 18 and above can easily register online by visiting the Inland Revenue Department’s website, WWW.IRD.GOV.LK. Alternatively, they can seek assistance by visiting their local revenue office or the department’s head office.
It’s important to note that possessing a Tax Identification Number (TIN) does not automatically subject an individual to income tax. The tax obligation only arises when annual income surpasses the exemption limit of Rs. 1.2 million for individuals aged 18 and above.
