TaxWise
For freelancers

Tax for freelancers in Sri Lanka

Foreign clients, mixed currencies, real expenses, prepared cleanly. Designers, developers, writers, photographers and consultants — upload your bank statements (PDF/CSV/OFX) and TaxWise extracts and classifies every USD, GBP and LKR transaction, then reconciles it into IRD-ready IIT schedules you submit yourself.

Why freelance tax is hard

Four sources of confusion. All solvable.

Mixed currencies

USD from Upwork, GBP from a UK studio, LKR from local clients. Each settles on a different day at a different rate.

No PAYE safety net

Nothing was withheld. You owe the full amount in installments, and most freelancers don't realise installments exist until they're late.

Allowable expenses

Internet, co-working, the laptop, training, the half-room you use as an office. The Act allows them; you need to substantiate them.

Double tax exposure

A US client may withhold tax. Sri Lanka has a treaty, but only if you claim the credit on the right schedule.

The four-plus-one schedule

Five dates that define your tax year.

TaxWise estimates each installment from your live earnings.

Aug 15
Q1 instalment
25% of estimated annual liability
Nov 15
Q2 instalment
Re-estimated based on H1 actuals
Feb 15
Q3 instalment
Nine-month reconciliation
May 15
Q4 instalment
Final installment; settle estimate vs. actual
Nov 30
Annual return
File the full return for Y/A 2025/2026
Allowable expenses

The ledger you should be keeping.

TaxWise builds it from your transactions, with §11 substantiation logic.

ExpenseTypical valueTreatment
Co-working deskRs. 18,000/moFully deductible if used wholly for work
Laptop (declared as asset)Rs. 425,000Capital allowance: 33% × 3 years
Internet (home + mobile)Rs. 9,200/moApportioned: 60% work / 40% personal
Software subscriptionsRs. 14,500/moFigma, Notion, Cursor, substantiated by invoice
Training & coursesRs. 92,000/yrIf directly related to current freelance work
Travel to client meetingsRs. 28,400/yrLocal mileage at IRD-prescribed rate
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Filing opens Apr 2026 · Final return for Y/A 2025/2026 due 30 Nov 2026.