Income earned from the export of services is subject to a 15% tax from the 2025/2026 assessment year, the Inland Revenue Department (IRD) has confirmed.
The tax is applicable to income earned by individuals providing services to overseas clients through digital platforms and other means, IRD Senior Deputy Commissioner Hiran Meneripitiya noted.
Speaking on Ada Derana BIG FOCUS programme, Meneripitiya clarified that service export income will not be taxed under the standard income tax rates of 18%, 24%, 30% and 36%.
Instead, a maximum tax rate of 15% will apply to qualifying income from service exports, making it lower than the rates applicable to ordinary income.
He noted individuals earning income through digital platforms are required to declare their earnings through self-assessment tax returns and pay the applicable tax.
Meneripitiya stressed that declaring service export income and settling the relevant tax liability is the responsibility of the individuals earning such income.
The IRD’s clarification comes as more Sri Lankans earn income from overseas clients through digital platforms and other service-based activities.
