Everyone above 18 will have tax file – Siyambalapitiya

State Minister of Finance Ranjith Siyambalapitiya announced that starting from 01 January 2024, the Inland Revenue Department (IRD) would open tax files for all individuals above the age of 18.

While it was mandatory for individuals to open a tax file, not everyone would be required to pay taxes, State Minister Siyambalapitiya said. He further stated that the tax file number would also be used for future welfare benefits.

A special Gazette notification was issued by President Ranil Wickremesinghe, who serves as the Minister of Finance, Economic Stabilization and National Policies, with the approval of the Commissioner General of IRD. This notification, effective from 01 June, makes it compulsory for professionals belonging to 14 categories, including Doctors, Engineers, Chartered Accountants, and Architects, to register themselves with the IRD.

The Gazette notification also states that employees, whose combined monthly contributions to any Provident Fund exceed 20,000 rupees, are required to register with the IRD.

The list of professionals, who must register with the IRD, from 01 June, 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 own vehicles registered (excluding three-wheelers, motorcycles, and hand tractors) with the Motor Traffic Department, individuals who have purchased or acquired any immovable property in Sri Lanka through Deeds Transfer on or after 01 April 2018, employees whose monthly contribution from both employee and employer to any Provident Fund exceeds 20,000 rupees, Individuals who obtain approval for a building plan from a Local Authority, and 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.

According to the notification, individuals who do not fall into any of the mentioned categories but are 18 years of age, or older, as of 31 December 2023, or who reach the age of 18 on or after 01 January 2024, must register with the IRD from 01 January 2024.