Govt. widens tax net via new gazette targeting professionals

The Government has widened the tax net making it mandatory for professionals belonging to 14 categories to register themselves with the Inland Revenue Department.

President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabi l isat ion and National Policies Minister on Wednesday issued a special gazette notification in this regard.

According to the gazette notification, employees whose monthly contribution from both employee and employer to any Employee Provident Fund ( EPF) exceeds Rs. 20,000 are also required to register with the Department.

The Government has made it mandatory for the professionals belonging to the following 14 categories to register themselves with the Department with effect from 1 June.

The categories are, practitioners registered with the Sri Lanka Medical Council (SLMC), members of the Institute of Chartered Accountants of Sri Lanka, members of the Institute of Certified Management Accountants of Sri Lanka, members of the Institution of Engineers Sri Lanka, members of the Association of Professional Bankers, members of the Sri Lanka Institute of Architects, members of the Institute of Quantity Surveyors Sri Lanka, Attorneys-at-Law of the Supreme Court of Sri Lanka, individuals who have registered their businesses in Divisional Secretariats, individuals who are in possession of vehicles registered (other than three- wheelers, motorcycles and hand tractors) in Motor Traffic Department, individuals who have purchased or acquired, by virtue of Deeds Transfer, of any immovable property in Sri Lanka on or after 1 April 2018, employees whose monthly contribution from both employee and employer to any Provident Fund is more than Rs. 20,000, any individual who obtains approval for a building plan from a Local Authority, any other individual who receives payment of Rs. 100,000 per month or Rs. 1,200,000 for a 12-month period for providing any services in Sri Lanka.

In addition, any individual who does not belong to any of the aforementioned categories, but is aged 18 years or more as of 31 December 31, or attains the age of 19 years on or after 1 January 2024, is also required to register themselves with the IRD.