Sri Lanka Corporate Income Tax Calculator — Y/A 2025/26

Sri Lanka taxes companies on a single flat statutory rate that depends on the sector and, for SMEs, on annual gross turnover. The rate is fixed by Schedule I of the Inland Revenue Act No. 24 of 2017 as amended — most recently by Act No. 4 of 2023, which set the standard rate at 30% and introduced the 40% rate for liquor, tobacco, and betting & gaming.

The calculator walks the four steps every corporate tax computation follows:

1. Pick the year of assessment. Each Y/A runs 1 April to 31 March. Companies file an annual return after the Y/A ends but pay tax in four self-assessment instalments during the Y/A.
2. Pick the sector. Schedule I assigns the statutory rate by predominant activity:
   • Standard (default): 30%
   • Small or medium enterprise (SME, turnover ≤ Rs 500m): 15%
   • Manufacturing: 18%
   • Agriculture / fisheries / livestock: 15%
   • Education services: 15%
   • Healthcare services: 15%
   • IT / BPO with foreign-currency export revenue: 15%
   • Construction: 30%
   • Trading (wholesale / retail): 30%
   • Financial institution: 30%
   • Liquor / tobacco / betting & gaming: 40%
   A company can only sit in one bucket; when activities cross categories the dominant activity rules apply.
3. Enter the assessable income.This is the figure after capital allowances, allowable deductions, qualifying payments and loss offsets — i.e. the bottom of the company's tax computation, not its accounting profit. For SMEs the calculator also takes annual gross turnover so it can validate the Rs 500,000,000 SME ceiling under s.52A. Going over the ceiling drops the company to the 30% standard rate.
4. Apply the rate. Income tax payable = taxable income × rate. The post-tax profit is the residue; the quarterly self-assessment instalment is tax ÷ 4, due on the 15th of August, November, February and May per IRD Notice PN/IT/2023-04.

As a cross-check the calculator also recovers the tax figure from the post-tax profit: tax = profit × r ÷ (1 − r). Both methods produce the same rupee figure, and the breakdown panel shows them side by side.

The 10% withholding tax on dividends paid to resident shareholders is a separate downstream obligation and is not included here — use the Withholding Tax Calculator for that. Transfer pricing adjustments, group relief, controlled foreign company rules and partial-year apportionment are beyond v1 of this tool; the calculator works from the taxable income figure your accountant arrives at after those steps.

• Inland Revenue Department — Corporate Income Tax overview
• Inland Revenue Act No. 24 of 2017 — full text (Schedule I rates)
• Inland Revenue (Amendment) Act No. 4 of 2023 — current standard rate and 40% special rate
• Inland Revenue Department of Sri Lanka — official site

Rates, SME ceiling and quarterly due dates on this page were last cross-checked against the IRD pages and the Act on 2026-05-16. The tool is reviewed at the start of every Y/A and after any new Inland Revenue (Amendment) Act that touches corporate rates.