Free tool for freelancers and consultants

Sri Lanka Freelancer Tax Calculator

Paid by foreign clients, local companies, or both? Enter what you earned this year and see your income tax for 2025/26, how much the 15% foreign-currency ceiling saves you, what the 5% your clients already kept is worth, and whether you pay quarterly or once.

In short

A freelancer in Sri Lanka pays income tax on profit (fees minus business costs) at 6% to 36% after the Rs 1.8 million personal relief. Fees paid in foreign currency into a Sri Lankan bank are taxed at no more than 15%. Companies that pay you over Rs 100,000 a month keep 5% as withholding tax, which counts toward your bill. If tax is still owed after those credits you pay it in four instalments and file one return by 30 November.

Written by Anudi ImeshaReview pending: the foreign-currency 15% rule is awaiting a written rulingUpdated 8 September 2026

Where does your money come from?

Tap everything that applies to you — most people have more than one. Or

Your result Rs. — Tap your income types on the left to begin.

All your income for the year—
Tax-free allowance (everyone gets this)—
The part that gets taxed—
Tax for the whole year—
Already paid for you (cut at source)—

What you should do

Once you enter your amounts, we’ll tell you whether you need quarterly payments or just one yearly form.

Estimates for a person living in Sri Lanka, using this tax year’s official rules (Inland Revenue Act No. 24 of 2017 as amended in 2025). This is guidance, not tax advice — please confirm with a Chartered Accountant or tax practitioner before paying or filing.

Want the whole return built from your invoices and remittances, not just the estimate? LankanTax Desktop does it on your own computer.

See LankanTax Desktop

How this freelancer tax calculator works

The calculator opens with the two income types most freelancers have: money from foreign clients and money from local work. Tap the other buttons if you also have a salary, rent or bank interest, because everything is taxed together. It then applies the Y/A 2025/26 rules: the Rs 1.8 million personal relief, the 6% to 36% bands, the 15% ceiling on remitted foreign-currency income, and every credit already paid on your behalf. The result link at the bottom carries only the numbers you typed, so you can send it to your accountant or save it for filing season.

The 15% rule for foreign-currency income

Since 1 April 2025, service income earned from clients outside Sri Lanka, received in foreign currency and remitted through a Sri Lankan bank, is taxed at a maximum of 15% instead of the normal bands that run to 36%. Payments that reach you outside banking channels, or are converted abroad before landing, get no ceiling. The calculator follows the IRD’s worked example: your relief is absorbed by normal-rate income first, then the foreign slice is taxed at the lower of 15% and what the bands would have charged.

How the 15% is applied when your foreign income is large is still being confirmed with the IRD; this page will be updated with the reviewer’s ruling when it arrives. Read the foreign income tax guide for the detail and the documents to keep.

The 5% your clients keep is not lost

A Sri Lankan company paying an individual more than Rs 100,000 in a month for services must deduct 5% withholding tax and pay it to the IRD under your TIN. Enter the total on the self-employed card as tax already kept and the calculator subtracts it from what you owe. Ask each client for the withholding certificate; from 2026 they must give it free of charge.

Three freelancers, three results

Situation	Income	Tax for the year	How to pay
Remote developer, one US client, paid to a Sri Lankan bank	USD 1,000 a month, about Rs 3,600,000 a year	Rs 222,000	Four instalments of about Rs 55,500, return by 30 November
Consultant with local company clients only	Rs 4,800,000 fees, Rs 800,000 costs, Rs 240,000 kept as 5% WHT	Rs 330,000 less Rs 240,000 credit = Rs 90,000	Four instalments of Rs 22,500, return by 30 November
Designer with a salary and side clients abroad	Salary Rs 200,000 a month (APIT deducted) plus Rs 1,200,000 remitted foreign fees	Rs 216,000 less Rs 36,000 APIT = Rs 180,000	Four instalments of Rs 45,000, return by 30 November

Figures produced by this calculator under the current reading of the 15% rule. Enter your own numbers above; the result link reproduces them exactly.

What you can deduct before tax

Only profit is taxed. Costs incurred to earn the fees come off first: software subscriptions, a share of home internet and electricity, equipment through capital allowances at 20% a year, co-working rent, professional fees, business travel. Personal costs and the EPF-style savings you make for yourself do not. The freelancer deductions list goes item by item, and the advanced calculator lets you enter each one.

Registering, paying and filing

Register for a TIN if you do not have one; freelancers use their personal TIN.
Pay the balance the calculator shows in four instalments: 15 August, 15 November, 15 February and 15 May. Pay any remainder by 30 September after the year ends.
File the return by 30 November, entering foreign income, local income after costs, and every APIT and WHT credit.
If your turnover passes Rs 36 million, check SSCL; above Rs 60 million, VAT. Exported services are zero-rated for VAT.

Freelancer tax questions

What freelancers ask about tax in Sri Lanka.

How much tax does a freelancer pay in Sri Lanka? +

Income tax on profit at 6% to 36% after the Rs 1.8 million personal relief, with foreign-currency income remitted through a Sri Lankan bank capped at 15%. A freelancer with Rs 3.6 million of income pays about Rs 222,000 either way; the 15% ceiling starts saving money once remitted foreign income passes roughly Rs 4 million a year, because below that the ordinary bands are already lower.

Do I pay tax on money from Upwork, Fiverr or a foreign employer? +

Yes. It is service income. If it reaches your Sri Lankan bank in foreign currency the tax is capped at 15%. If you keep it abroad or receive it in rupees through informal channels, the normal bands apply.

Is the 5% my client deducted my final tax? +

No. It is withholding tax, an advance. Your fees are taxed at the normal rates on profit, and the 5% is credited against that bill. Some freelancers owe more, some are due a refund.

Do freelancers need to register for VAT? +

Only when taxable supplies exceed Rs 60 million a year. Services supplied to clients outside Sri Lanka and paid in foreign currency are zero-rated, so most exporting freelancers charge no VAT even if registered. SSCL applies above Rs 36 million of turnover.

Can I share the result with my accountant? +

Yes. Use Copy link, Send on WhatsApp or Email it under the result. The link contains only the figures you entered; nothing is stored on LankanTax servers.