IRD has published a notice on 25 October 2021 reminding taxpayers of the tax rates applicable for resident natural persons during the FY - 2078/79.

The tax rates are summarized below:

For Single Assessment

Taxable income up to basic exemption limit - Rs. 400,000
0 %* or 1 %
 Next Rs. 100,000
10 %
Next Rs. 200,000
20 %
Next Rs. 1,300,000
30 %
Balance
36 %


For Couple Assessment (Under section 50)

Taxable income up to basic exemption limit - Rs. 450,000
0 %* or 1 %
Next Rs. 100,000
10 %
Next Rs. 200,000
20 %
Next Rs. 1,250,000
30 %
Balance
36 %

*0 % tax rate on basic exemption limit as indicated above is applicable for natural persons having income from business and/or investment only, and for natural persons making contributions to Contribution Based Social Security Fund (SSF) or Pension Fund.

The notice published by IRD incorporates a list of amounts deductible or not included in calculating the taxable income of a natural person, and also the tax applicable for Presumptive Taxpayers (filing D-01 Income Return) and Turnover Tax Payers (filing D-02 Income Return).


Please click here for accessing the full notice issued by IRD.