New Tax Registration Requirement Announced: What You Need to Know

COLOMBO (News 1st); Income tax registration becomes mandatory for all citizens above 18 years old starting February 1, 2024. 

This announcement was made today by the Presidential Media Division.

While registration will be mandatory for everyone, it's important to note that not all registered individuals will be liable to pay taxes. 

The Presidential Media Division clarified that only those earning more than Rs. 100,000/- per month will be subject to income tax.

However, even if you don't fall into the taxable income bracket, obtaining a tax registration number will become essential for several everyday transactions. These include:

1. Opening a current bank account
2. Applying for building plan approval
3. Registering a motor vehicle
4. Renewing licenses
5. Registering land ownership

Obtaining a tax number is a straightforward process. 

Individuals above 18 can simply visit the Inland Revenue Department's website, WWW.IRD.GOV.LK, to register online. 

Alternatively, they can visit their local revenue office or the department's head office for assistance.

The possession of a Tax Identification Number (TIN) does not automatically subject an individual to income tax.

The tax obligation only arises when annual income exceeds the exemption limit of Rs. 1.2 million for individuals above 18 years old.