Foreign income tax

Sri Lanka foreign income tax calculator for 2025/26

Model qualifying bank-remitted foreign service income or cumulative APIT for residents employed by foreign employers.

Calculate foreign freelance income Calculate remote-employee income

How is qualifying foreign freelance income taxed?

Annual LKR income = foreign amount × the user-entered LKR rate, annualized when the input is monthly. Personal relief is Rs 1,800,000. For qualifying bank-remitted service-export income, the first Rs 1,000,000 of taxable income is taxed at 6%, and the remaining taxable balance at 15%. Foreign tax credit is capped at the Sri Lankan tax calculated for this income-only estimate.

How much tax applies to Rs 250,000 a month?

Annual income is Rs 3,000,000. After Rs 1,800,000 personal relief, taxable income is Rs 1,200,000. Tax = Rs 1,000,000 × 6% + Rs 200,000 × 15% = Rs 90,000 annually, or Rs 7,500 monthly, before any foreign tax credit.

How is remote-employee cumulative APIT calculated?

Under Table 08, cumulative employment income up to Rs 1,800,000 has Rs 0 tax. From above Rs 1,800,000 through Rs 2,800,000, cumulative tax = income × 6% − Rs 108,000. Above Rs 2,800,000, cumulative tax = income × 15% − Rs 360,000. Monthly payable is current cumulative tax less tax already paid. For example, Rs 3,000,000 cumulative income gives Rs 90,000 cumulative tax.

Which official sources support these rules?

Rates last verified: 12 July 2026. Eligibility and credit treatment can depend on facts outside this calculator.

Frequently asked questions

How is qualifying foreign freelance income taxed in 2025/26?

After Rs 1,800,000 relief, 6% applies to the first Rs 1,000,000 taxable and 15% to the balance.

How much tax applies to Rs 250,000 a month of qualifying foreign service income?

Rs 90,000 annually, or Rs 7,500 monthly, before foreign tax credit.

What if foreign freelance income is not remitted through a bank?

The calculator uses standard annual individual rates.

How is remote-employee tax calculated?

Cumulatively from April to March under Table 08.

Does the calculator fetch a live exchange rate?

No; you enter the rate.

Can foreign tax paid reduce the Sri Lankan estimate?

The modeled credit is capped at the Sri Lankan tax for this estimate.

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