The Social Security Contribution Levy (Amendment) Act No. 10 of 2026, certified on 9 April 2026, cut the registration threshold for any period starting on or after 1 July 2026 to Rs 9 million a quarter or Rs 36 million over four consecutive quarters. A business that crosses the new limit must register within 15 days. Many businesses that are comfortably under the Rs 60 million VAT threshold are now inside SSCL.
What SSCL is
SSCL was introduced on 1 October 2022 by the Social Security Contribution Levy Act No. 25 of 2022 to replace the old NBT. It is charged on the turnover of importers, manufacturers, service providers and traders. Because it is a turnover tax, a loss-making business still pays it. It is separate from VAT and from income tax, and you can be liable for SSCL without being VAT-registered.
SSCL threshold by period
| Period | Per quarter | Four consecutive quarters |
|---|---|---|
| 1 October 2022 to 31 December 2023 | Rs 30,000,000 | Rs 120,000,000 |
| 1 January 2024 to 30 June 2026 | Rs 15,000,000 | Rs 60,000,000 |
| From 1 July 2026 | Rs 9,000,000 | Rs 36,000,000 |
SSCL Act No. 25 of 2022, sections 2 and 5, as amended by Act No. 10 of 2026.
Liable turnover: what the 2.5% is charged on
| Activity | Liable turnover | Effective rate on sales |
|---|---|---|
| Importer (on the import) | 100% | 2.5% |
| Manufacturer | 85% | 2.125% |
| Service provider | 100% | 2.5% |
| Wholesale or retail trader | 50% | 1.25% |
| Wholesale or retail by a registered distributor | 25% | 0.625% |
| Financial services | 100% of value addition | 2.5% of value added |
Section 3 of the SSCL Act. Exempt articles (Part IA of the First Schedule) and exempt services (Part II) are left out of turnover.
How to calculate SSCL
Service business. A consultancy bills Rs 4,000,000 in a month. Liable turnover is 100%, so SSCL = 4,000,000 × 2.5% = Rs 100,000.
Retail shop. Sales of Rs 4,000,000 in a month. Liable turnover is 50% = Rs 2,000,000; SSCL = 2,000,000 × 2.5% = Rs 50,000.
Manufacturer. Sales of Rs 4,000,000. Liable turnover 85% = Rs 3,400,000; SSCL = Rs 85,000.
SSCL is charged on turnover excluding VAT. Most businesses add it to the price; a registered business shows SSCL as a line on the invoice, and SSCL charged to you by a supplier is a cost, not a credit.
Registering and filing
- Register within 15 days of the date your turnover exceeds, or is likely to exceed, the threshold, through IRD e-services against your TIN.
- Pay monthly: the first two months of a quarter by the 20th of the following month, and the third month by the 20th of the month after the quarter ends.
- File a quarterly SSCL return by the 20th of the month after the quarter ends.
Late payment attracts the same penalty and interest regime as other IRD taxes. If your turnover later falls below Rs 36 million for four consecutive quarters you can apply to deregister.
SSCL and your income tax
SSCL you pay is a deductible business expense when you work out profits for income tax. It is not a credit against income tax. Sole proprietors and partnerships liable for SSCL still pay income tax on profits at the normal rates; see the small business tax guide.