WHT rate changes affect your payroll and your invoicing. Get the rate card right.
Deep-dive on the Withholding Tax measures in Sri Lanka Budget 2027 — rates on bank interest, service fees to residents, rent, dividends, royalties, and payments to non-residents. We update this article within the hour of the Budget speech and daily as IRD circulars are released.
What changedAwaiting speech
TODO: Short list of specific WHT measures. One bullet per measure (category + old rate + new rate + effective date).
New rate cardAwaiting speech
TODO: Full rate card after Budget 2027. One row per category: Bank interest, Service fees (residents), Rent (residents), Dividends, Royalties, Service / rent to non-residents, Lottery & gambling, plus anything new.
Thresholds that changedAwaiting speech
TODO: Any change to the Rs 100,000 monthly service-fee threshold, the Rs 100,000 rent threshold, or the self-declaration regime for bank interest below the personal-relief threshold.
What payers must doAwaiting speech
TODO: Payer action checklist — update deduction schedules, update tenancy agreements if rent WHT changes, issue certificates, remit by the 15th. Include a note on contracts that were priced before the rate change.
What recipients must doAwaiting speech
TODO: Recipient action — collect new WHT certificates, reflect the right rate in the annual return, update the self-declaration to the bank if the personal-relief threshold changed.
When this takes effectAwaiting speech
TODO: Confirm effective date. Flag transitional rules.
- Sri Lanka Budget 2027 — Tax Changes (Live hub)
- VAT changes in Sri Lanka Budget 2027
- Sri Lanka Withholding Tax quick guide (current rules)
- Sri Lanka WHT calculator
Disclaimer: WHT measures in Sri Lanka Budget 2027 are subject to amendment of the Inland Revenue Act and come into force only when the related Bill is passed. Specific WHT treatment depends on the facts of the payment. Obtain professional advice before acting on anything summarised here.