The Inland Revenue Department has assured Sri Lankan expatriates that transferring legally earned foreign income through banking channels does not incur additional taxes, provided they meet specific residency criteria.
The Inland Revenue Department (IRD) has moved to ease concerns among Sri Lankan workers abroad regarding taxation on money they send home. According to Senior Deputy Commissioner Hiran Meneripitiya, no supplementary tax is levied on remittances transferred through the formal banking system, contrary to what some overseas workers may have feared.
The actual tax treatment of foreign-sourced income depends on an individual's tax residency status in Sri Lanka during the relevant assessment year, Meneripitiya explained during a media appearance. Those classified as Sri Lankan tax residents may face taxation on both domestic and international earnings. Conversely, workers who do not hold tax resident status in Sri Lanka for the year in question are not subject to local taxation on income earned outside the country.
The IRD official emphasized that overseas Sri Lankans should not hesitate to remit their legitimately earned income through official banking channels. He further noted that such funds can be invested in Sri Lanka for lawful purposes after providing required documentation to relevant authorities. Meneripitiya cautioned that tax anxieties should not drive workers toward informal or illegal money transfer methods, which carry their own risks and complications.
