Concessionary rates on terminal benefits
| Payment type | Rate |
|---|---|
| First LKR 10,000,000 of benefit Tax-free ceiling across all terminal payments in a year | 0% |
| Next LKR 10,000,000 (10M – 20M) | 6% |
| Balance above LKR 20,000,000 | 12% |
| Uniformed-service / long-service adjustments Consult IRD Table 3 / 4 depending on years of service | Varies |
Source: Inland Revenue Act No. 24 of 2017, Fifth Schedule · IRD APIT Table 3 / 4
What we handle
We handle
- Working out the concessionary rate for a lump-sum payout
- EPF / ETF withdrawal tax computation
- Gratuity Act eligibility check
- Compensation-for-loss-of-employment structuring advice
Not (yet) covered here
- Foreign-source pension income
- Ex-gratia payments structured as loans
- Cross-border transfers of retirement funds
Retiring, resigning, or restructuring? We'll walk you through it.
Send us the payout components — gratuity, EPF, ETF, ex-gratia — and we'll compute the exact APIT deduction and net take-home. First conversation free.