Personal income tax payers in IRD books better than doubles

Sri Lanka’s pay as you earn (PAYE) tax registrations have increased from 41,636 in 2022 to 242,679 in 2023, Commissioner of the Department of Inland Revenue, A. M. Nafeer, said during a press conference at the Presidential Media Centre (PMC) on Thursday (28).

He added that in 2022, a total of 73,444 companies were registered with them, and the number grew to 81,909 by the end of November 2023.

The number of personal taxpayers registered with the Department rose from 204,467 in 2022 to 500,196 by the end of November this year. Joint ventures saw an increase from 13,776 in 2022 to 15,579 in 2023, he said and VAT registrations rose from 10,604 in 2022 to 13,546 in 2023.

The revenue collected by the IRD declined from 1,025 billion rupees in 2019, decreased to 500 billion rupees in 2020. However, this revenue increased to 1,500 billion rupees by broadening the tax base and modifying tax rates.

Nafeer said starting from January 2024, all individuals above the age of 18 must obtain a Tax Identification Number (TIN) from the Inland Revenue Department.He clarified that obtaining the registration number and opening tax files are different things. Obtaining a TIN Number is mandatory for everyone with a national identity card number, he said.Opening a file for income tax payment is necessary only if individuals have sufficient income to be liable for taxation, he explained.