TIN registrations reach 1.3 million; only 130,000 currently pay taxes

Sri Lanka has increased the number of Taxpayer Identification Number (TIN) registrations to 1.3 million, Inland Revenue Department (IRD) officials said at a special media briefing held yesterday.

Out of these 1.3 million TIN holders, only around 130,000 currently pay some form of tax to the IRD.

Officials said the TIN system was introduced two years ago and that every Sri Lankan citizen aged 18 years and above is required to obtain a TIN. Registrations can be completed at the IRD head office in Colombo, its 16 regional offices, municipal councils and Pradeshiya Sabhas.

The IRD also stressed that obtaining a TIN does not automatically make a person liable to pay taxes.

“Individuals are required to pay income tax only if their annual income exceeds Rs. 1.8 million,” officials said.

They noted that while the TIN system is relatively new to Sri Lanka, many countries have had similar systems in place for years.

Every company incorporated or registered in Sri Lanka is required to register with the Commissioner General of Inland Revenue within 30 days of incorporation or registration. The Commissioner General issues a TIN certificate to every registered taxpayer, and the TIN is not treated as secret or confidential information.

The IRD said a TIN is mandatory for several transactions and services, including:

• Opening an account at a financial institution


• Obtaining approval for a building plan


• Registering a motor vehicle


• Renewing a motor vehicle licence


• Registering land or a land title


• Registering a business


• Transferring shares of a company incorporated in Sri Lanka by the transferor and transferee


• Obtaining a credit card