Business Tax Calculator Sri Lanka

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Business Tax Calculator Sri Lanka

Estimate business income tax for a sole proprietor, freelancer, self-employed person, or registered company such as a Pvt Ltd, Ltd, or PLC.

Enter your business income details

Enter annual business income, allowable expenses, business type, and any tax already paid. The calculator updates instantly while you type.

Choose individual if the business income goes into your personal tax file. Choose company if the income belongs to a separate Pvt Ltd / Ltd / PLC company.
≈ LKR 12.00 million Enter total annual business income before deducting expenses.
≈ LKR 7.00 million Enter business expenses you expect to deduct.
Only used for individual / sole proprietor / freelancer. Add salary, rent, fixed deposit interest, or other personal income.
Only used if you choose “registered company — special rate I enter”. For a normal Pvt Ltd / Ltd / PLC company, use the normal 30% company option.
Optional. Add quarterly payments, tax credits, or tax already deducted.
Business sales / income LKR 12,000,000 ≈ LKR 12.00 million
Business expenses deducted LKR 7,000,000 ≈ LKR 7.00 million
Net business profit LKR 5,000,000 ≈ LKR 5.00 million
Other personal income used LKR 0 Only used for individual / sole proprietor estimate
Personal relief / company rate LKR 1,800,000 Personal relief deducted before tax
Taxable amount LKR 3,200,000 ≈ LKR 3.20 million
Estimated annual tax LKR 672,000 ≈ LKR 0.67 million
Tax already paid LKR 0 Amount entered by user
Balance / credit estimate LKR 672,000 Estimated amount still to pay
Quarterly payment estimate LKR 168,000 Estimated annual tax divided by 4
Effective tax rate 13.44% Estimated tax ÷ net business profit
Based on the details entered, your estimated annual tax is LKR 672,000. After tax already paid, the estimated balance is about LKR 672,000 to pay.
This calculator estimates income tax only. It does not calculate VAT, SSCL, PAYE/APIT, EPF/ETF, stamp duty, registration fees, or other business compliance costs.

Calculation breakdown

This table updates instantly while you type. If JavaScript is blocked, it updates after you click Calculate.

Calculation step Formula / basis Estimated amount
Business type Individual / sole proprietor / freelancer Individual / sole proprietor / freelancer
Business sales / income Annual amount entered LKR 12,000,000
Allowable expenses Annual expenses entered LKR 7,000,000
Net business profit Business income minus expenses LKR 5,000,000
Other annual personal income Salary, rent, bank interest, or other income entered LKR 0
Total personal income used Net business profit + other annual personal income LKR 5,000,000
Personal relief used Up to LKR 1,800,000 LKR 1,800,000
Taxable amount Total personal income minus personal relief LKR 3,200,000
First taxable band LKR 1,000,000 × 6% LKR 60,000
Second taxable band LKR 500,000 × 18% LKR 90,000
Third taxable band LKR 500,000 × 24% LKR 120,000
Fourth taxable band LKR 500,000 × 30% LKR 150,000
Balance taxable income LKR 700,000 × 36% LKR 252,000
Tax already paid / deducted Amount entered by user LKR 0
Balance / credit estimate Estimated annual tax minus tax already paid LKR 672,000 to pay
Quarterly payment estimate Estimated annual tax ÷ 4 LKR 168,000

Understanding business tax

Which business type should I choose?

Choose individual / sole proprietor / freelancer if the business income is declared under your own personal tax file. Choose registered company if the income belongs to a separate Pvt Ltd, Ltd, or PLC company.

What does normal 30% company rate mean?

For a normal registered company, the calculator applies a 30% company income tax estimate to net business profit. Special industries or special cases can have different treatment.

Why does other personal income matter?

For individuals, Sri Lanka uses progressive tax slabs. That means your business profit can be taxed differently depending on your salary, rent, bank interest, and other taxable personal income.

Formula used

  1. Net Business Profit = Business Sales / Income − Allowable Expenses
  2. Individual Taxable Income = Business Profit + Other Personal Income − Personal Relief
  3. Individual Tax = Progressive individual income tax slabs
  4. Company Tax = Net Business Profit × Selected Company Rate
  5. Balance / Credit = Estimated Annual Tax − Tax Already Paid
  6. Quarterly Estimate = Estimated Annual Tax ÷ 4
Educational estimate only. This calculator does not replace IRD guidance, company tax filing, individual tax filing, accounting advice, legal advice, or professional tax advice.
Source note: This calculator uses the 2025/2026 personal relief, progressive individual income tax slabs, and normal company tax rate basis published by the Inland Revenue Department of Sri Lanka.
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