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.
Four sources of confusion. All solvable.
USD from Upwork, GBP from a UK studio, LKR from local clients. Each settles on a different day at a different rate.
Nothing was withheld. You owe the full amount in installments, and most freelancers don't realise installments exist until they're late.
Internet, co-working, the laptop, training, the half-room you use as an office. The Act allows them; you need to substantiate them.
A US client may withhold tax. Sri Lanka has a treaty, but only if you claim the credit on the right schedule.
Five dates that define your tax year.
TaxWise estimates each installment from your live earnings.
The ledger you should be keeping.
TaxWise builds it from your transactions, with §11 substantiation logic.
| Expense | Typical value | Treatment |
|---|---|---|
| Co-working desk | Rs. 18,000/mo | Fully deductible if used wholly for work |
| Laptop (declared as asset) | Rs. 425,000 | Capital allowance: 33% × 3 years |
| Internet (home + mobile) | Rs. 9,200/mo | Apportioned: 60% work / 40% personal |
| Software subscriptions | Rs. 14,500/mo | Figma, Notion, Cursor, substantiated by invoice |
| Training & courses | Rs. 92,000/yr | If directly related to current freelance work |
| Travel to client meetings | Rs. 28,400/yr | Local mileage at IRD-prescribed rate |
Straight answers, current for 2025/2026.
Not sure how this applies to you?
Local clients, overseas payments and quarterly instalments interact. Answer five questions and see which schedules you file and what falls due when.
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