Inland Revenue Act 2017 · As enacted · Part I
90. Payment of tax by quarterly instalment
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
A person who is an “instalment payer” shall pay tax by quarterly instalments if he derives or expects to derive assessable income during a year of assessment –
from a business or investment; or
from an employment where the employer is not required to withhold tax under section 83.
An instalment payer shall pay instalments of tax-
in the case of a person whose year of assessment is a twelve month period ending on the thirty first day of March, on or before the fifteenth day respectively of August,
November and February in that year of assessment and the fifteenth day of May of the next succeeding year of assessment; or
in any other case, on or before the fifteenth day after each three-month period commencing at the beginning of each year of assessment and a final instalment on or before the fifteenth day after the end of each year of assessment, unless it coincides with the end of one of the three-month periods.
Subject to subsections (4) and (5), the amount of each instalment of tax payable by an instalment payer for a year of assessment shall be calculated according to the following formula:–
A — C
B where
‘A’
is the current estimated tax payable under section 91 or 92 by the instalment payer for the year of assessment;
‘B’
is the number of instalments remaining for the year of assessment including the current instalment; and
‘C’
is the sum of any –
tax paid during the year of assessment, but prior to the due date for payment of the instalment, by the person by previous instalment under this section;
tax withheld under Division II during the year, but prior to the due date for payment of the instalment, from payments received by the person that are included in calculating the person’s income for the year; and
tax paid in accordance with subsection (3) or (4) of section 86
that is paid to the Commissioner-General by a withholding agent or the person as withholdee during the year but prior to the due date for payment of the instalment.
The Commissioner-General may specify by a Gazette
Notification -
that a particular class of persons shall pay tax by instalments otherwise than or in substitution for instalments payable under this section;
that a particular class of organised association or recognized occupational group shall collect from its members tax payable by those members by instalment under this section;
the terms and conditions on which the tax shall be collected; and
the terms and conditions on which the association or group shall account to the Commissioner-General for the tax.
An instalment payer shall be entitled to a tax credit for a year of assessment in an amount equal to the tax paid by way of instalment for the year.