How to Pay Taxes in Sri Lanka: A Step-by-Step Guide

Paying taxes is a civic duty that ensures the continued development and functioning of public services in Sri Lanka. The Inland Revenue Department (IRD) has streamlined the tax payment process through various platforms to make it more convenient for taxpayers. Here’s a detailed guide to help you navigate the tax payment process.

1. Online Tax Payment Platform (OTPP)

The Online Tax Payment Platform (OTPP) allows taxpayers to make real-time payments through LankaPay CEFTS (Common Electronic Fund Transfer System). This platform supports payments for various taxes, including Corporate Income Tax, PAYE, Nation Building Tax, VAT, and Withholding Tax.

Steps to Use OTPP:

Access the OTPP Portal: Visit the OTPP portal.
Select the Payee: Choose “INLAND REVENUE DEPARTMENT” from the list of payees.
Initiate Payment: Click the “Make Payment” button to proceed with the payment.
Enter Payment Details: Provide the required information, including your Taxpayer Identification Number (TIN), tax type, and payment amount.
Complete Payment: Follow the prompts to complete the payment using your bank’s online banking services.

Note: For a detailed user guide, refer to the User Guide for Online Tax Payments Platform (OTPP).

2. Generating Document Identification Numbers (DINs)

A Document Identification Number (DIN) is required for certain tax payments. To generate a DIN:

Visit the DIN Generation Portal: Go to the DIN Generation Portal.
Enter Required Information: Input your TIN, tax type, payment type, and taxable period.
Generate DIN: Click on the “Generate” button to obtain your DIN.

Note: For more information on DINs, refer to the Document Identification Number (DIN) page.

3. Paying-in Slips

A paying-in slip is a document used to make manual tax payments at banks. To obtain a paying-in slip:

Access the Paying-in Slip Portal: Visit the Paying-in Slip Portal.
Enter Required Information: Provide your TIN, tax type, payment type, and taxable period.
Generate Paying-in Slip: Click on the “Generate” button to create your paying-in slip.

Note: For detailed instructions, refer to the Quick Guide – Tax Payment.

4. Manual Payments at Banks

For taxpayers who prefer to make manual payments:

Bank of Ceylon (BOC): Payments for Corporate Income Tax, PAYE, Nation Building Tax, VAT, and VAT on Financial Services can be made at BOC. When paying through BOC, the payment voucher number is optional.
People’s Bank: Payments for Withholding Tax can be made at People’s Bank. For periods related to RAMIS (April 2016 onwards), a payment voucher number is required. You can obtain the payment voucher number by:
- Calling the IRD Call Center.
- Visiting the Taxpayer Services Unit (TPSU) at the IRD HQ office.

Note: Cheque payments are no longer accepted for tax payments at any of these banks. Payments must be made through cash or direct bank transfers.

5. Important Considerations

Know Your Deadlines: Tax deadlines are strict, and failure to make payments on time can result in penalties or interest charges. Always check the IRD’s website for specific dates regarding tax filings and payments.
Recordkeeping: It’s essential to keep detailed records of all payments made. Retain receipts, bank statements, and payment slips, as these are crucial for your financial records and may be needed in case of audits.
Stay Informed: The tax system in Sri Lanka may evolve, so it’s important to stay updated on new laws, rates, or payment methods. The IRD regularly updates their website with notices, guides, and other relevant information.

For more detailed information and updates, visit the Inland Revenue Department’s official website.

If you need assistance with a specific tax type or payment method, feel free to ask!