Question 1

What is the tax-free threshold for service exporters in Sri Lanka?

Accepted Answer

The first LKR 150,000 of monthly service export income is tax-free in Sri Lanka.

Question 2

What are the tax brackets for service export income in Sri Lanka?

Accepted Answer

Sri Lanka has three tax brackets for service export income: 0% for the first LKR 150,000, 6% for income between LKR 150,001 and LKR 235,000, and 15% for income above LKR 235,000.

Question 3

How is service export income taxed in Sri Lanka?

Accepted Answer

Service export income in Sri Lanka is taxed on a progressive monthly basis. Individual service exporters benefit from a tax-free threshold of LKR 150,000 per month, with reduced rates of 6% and 15% on higher income brackets.