How is an annual bonus taxed?

A bonus or other lump sum is taxed under the IRD's Tax Table 2 rather than spread across the year, which usually means a heavier deduction in the month it is paid. It is reconciled on the return.

Are dividends on my own bank's shares treated differently?

No. Dividends from a resident company carry 15% withholding as a final tax regardless of the payer, so they stay out of your slab base.

Can I claim back excess AIT on staff FD accounts?

Yes. Interest AIT is a credit against your total liability. If the 10% withheld exceeds what you owe overall, the excess is refundable when you file.

Income tax for bankers in Sri Lanka — Y/A 2025/2026

Salary and bonuses under APIT, FD interest at 10%, and bank or CSE shares where the 15% dividend withholding is final. Work out which schedules you file and what remains payable.

Identify your tax profile

What did you earn this year?

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Common questions

How is an annual bonus taxed?: A bonus or other lump sum is taxed under the IRD's Tax Table 2 rather than spread across the year, which usually means a heavier deduction in the month it is paid. It is reconciled on the return.
Are dividends on my own bank's shares treated differently?: No. Dividends from a resident company carry 15% withholding as a final tax regardless of the payer, so they stay out of your slab base.
Can I claim back excess AIT on staff FD accounts?: Yes. Interest AIT is a credit against your total liability. If the 10% withheld exceeds what you owe overall, the excess is refundable when you file.

Work out a single figure instead

Income tax (IIT)

Estimate your annual liability across salary, freelance, interest and investment income — with 2025/2026 reliefs applied.

Dividend WHT

15% withholding on dividends from a resident company — a final tax, not reconciled or refunded.

Bank interest & AIT

10% Advance Income Tax withheld on deposit interest — creditable against your return, not a final tax.