A reminder of the essential tax-related requirements is scheduled to take effect on February 1, 2024, according to a recent notice from the Presidential Media Division. According to the agency, obtaining a TIN and registering with the IRD are requirements for anybody who is over 18.
Online TIN Registration Sri Lanka
The Inland Revenue Department (IRD), Sri Lanka issues TINs, which are special numbers that firms can use to register for taxes. It facilitates tax compliance and lets the government monitor who is paying taxes.
This number is required for importing and exporting as well as for using IRD services, thus it’s not simply for taxes. In order to ensure that you comply with all applicable tax rules, you must register for particular taxes and services when you receive a TIN.
In Sri Lanka, this registration is required to conduct business. The Sri Lanka Inland Revenue Department is the one who issues the TIN certificate. It is necessary to register to receive the VAT certificate needed to export.
Step-by-step process of Online TIN Registration Sri Lanka
The NIC, utility bill, bank account statement, passport, address, or business registration certificate are examples of the supporting documents that applicants must submit in PDF format to receive a TIN.
- See the webpage of the Inland Revenue Board http://www.ird.gov.lk.
- After selecting “e-Services,” “Access to e-Services,” and “Taxpayer Registration,” click the next step.
- Pick a category, fulfil the form, and supply it online.
- When you create your online account, you’ll receive an email containing your TIN and a one-time PIN.
Who is required to register for TIN in Sri Lanka?
A TIN, which is required for all tax-related operations, must be obtained by anybody in Sri Lanka who is 18 years of age or older as of January 1, 2024, upon registration with the Inland Revenue Department.
Additionally, you will have to file for income tax if your income during the period of April 1 through March 31 of the following year exceeds Rs. 1,200,000. This is your first step in maintaining accurate tax records; it’s not just a formality.
What is TIN in Sri Lanka and Why it is necessary?
The country is debating Tax Identification Numbers (TINs), yet there is false information out there regarding their tax liability. Obtaining a TIN releases one from tax duties while interacting with governmental institutions.
Income tax is only due by 18-year-olds who make more than Rs. 100,000 per month and Rs. 1.2 million annually; there is a Rs. 1.2 million yearly exemption cap.
Income tax is required to be paid by Sri Lankans making more than Rs 1.2 million (more than Rs 100,000 per month), but less than that is not required. The Department of Inland Revenue’s Deputy Director General, Saman Shantha, stated that individuals without a TIN may be subject to a fine of Rs. 50,000.
Obtaining a TIN is mandatory for individuals over 18 by January 2024, and their 18th birthday. TINs contain nine digit numbers, with additional four for income tax payers and VAT payers. TIN submission is mandatory from February 01st, 2024.
What If I Don’t Register Myself for TIN in Sri Lanka Over 18?
As of January, those who do not register and get a Taxpayer Identification Number (TIN) would be subject to a penalty of Rs. 50,000, as stated by the Inland Revenue Department (IRD).
As per the Inland Revenue Act’s Section 102, the IRD declared that “any person who is eighteen years of age or older, or who becomes eighteen years of age on or after January 1, 2024, must register with the Inland Revenue Department and obtain a TIN (Taxpayer Identification Number).”
Hence, the notification went on, anyone who fails to register by the guidelines would be registered with the IRD and may face a fine of up to Rs. 50,000.
Why is TIN Registration More Beneficial for Businesses In Sri Lanka?
Simply enter your Tax Identification Number on the corresponding websites to access the business’s tax status, and all relevant information will be provided.
Becoming a licensed dealer or business is more cost-effective than becoming an unregistered one. It is preferable for registered firms to be involved in contracts with government departments.
A tax identification number lends the business an air of legitimacy by making it seem like it’s a bigger, more established company with a polished appearance. Because it presents the company in a more genuine and respectable light, it draws clients to contact it for business-related activities.