Income tax for freelancers in Sri Lanka — Y/A 2025/2026
Local client work with nothing withheld, overseas payments remitted through your bank, and interest already taxed at 10%. Work out which schedules you file and what falls due each quarter.
Identify your tax profile
What did you earn this year?
Pre-filled for your profession — add what applies, skip what doesn't.
Pre-selected for Freelancer / consultant — add or remove anything that doesn't match your year.
3 of 6 selected
Common questions
- How is income from foreign clients taxed?
- Service income remitted through a Sri Lankan bank is charged at a maximum rate of 15% — a ceiling rather than a flat rate, so a lower marginal rate applies if that is what your income produces. Payments not remitted through a bank do not get the cap.
- Do freelancers pay quarterly instalments?
- Yes, once estimated liability crosses the SET threshold. Nothing is withheld from self-assessed income, so the IRD collects it quarterly on 15 August, 15 November, 15 February and 15 May.
- What can I deduct as a freelancer?
- Expenses wholly incurred in producing the income — software, equipment, co-working space, professional fees, a reasonable share of home internet. Equipment is claimed through capital allowances, not written off in one year.
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.
Foreign income & DTA
Convert foreign-currency receipts at CBSL rates and apply the right tax credit under the Sri Lanka–UK / US / Singapore DTAs.
Quarterly installment
If you're self-employed: estimate your Q1–Q4 installments based on prior-year liability or current-year forecast.