Personal Tax Filing for IT Freelancers & Independent Service Providers in Sri Lanka
Are you an IT freelancer or independent service provider earning from overseas clients?
We specialize in tax filing services tailored to the IT sector — ensuring maximum legal deductions, compliance with Sri Lankan tax laws, and a stress-free process.
From internet bills to software subscriptions, we know exactly what you can claim to reduce your tax liability.
Under the Inland Revenue Act No. 02 of 2025 amendment, independent service providers are taxed under the following conditions:
- You are a resident of Sri Lanka.
- You provide services locally or internationally.
- Your service fees are received in foreign currency and remitted to Sri Lanka via a licensed local bank.
Previously, foreign service income remitted to Sri Lanka was fully tax-exempt.
However, from April 1, 2025, such income is taxable. Accurate filing is now essential to avoid penalties.
Personal Tax File for IT Freelancers & ISPs
Starting from: LKR 10,000
Our Service Includes:
- Quarterly Tax Computation: Calculating your taxable income with all allowable deductions, including IT-specific costs like internet bills, software licenses, hosting fees, and eligible hardware purchases.
- Final Income Tax Computation: Ensuring your annual tax liability is correctly calculated before filing.
- Tax Return Submission: Accurate and timely submission to the Inland Revenue Department.
- Tax Deduction Guidance: Advice on allowable expenses and proper record-keeping for IT freelancers.
Required Documents:
- Foreign income records (bank statements, invoices).
- Job-related expense receipts (e.g., internet bills, software subscriptions).
- Local income records (if applicable).
- Investment income statements.
- Proof of business-related expenses.
Our Process
- Send Your Documents: Email or WhatsApp your income and expense details.
- We Calculate Taxes: Including eligible IT-related deductions (internet, software, hosting, hardware under 5 years old).
- Review & Approve: We share a draft tax return for your confirmation.
- Submission: We file your return with the Inland Revenue Department.
- Confirmation: You receive an official acknowledgment and year-round support.
Frequently Asked Questions – IT Freelancers & ISPs
What kind of expenses can I claim?
Any expense directly related to earning your income. For IT freelancers, this includes internet bills, software subscriptions, domain and hosting fees, hardware purchases (less than 5 years old), and work-related tools. Personal or unrelated expenses cannot be claimed.
Can I claim expenses reimbursed by the client or company?
No — reimbursed costs are not considered your expenses. They are simply repayments for costs you initially covered.
Can I count reimbursed amounts as income?
No — reimbursements are not taxable income. They are merely repayments of amounts you have already spent.
Do I need to provide the exchange rate?
Yes — if you receive income in foreign currency, you must use the CBSL buying rate on the transaction date when converting to LKR.
Can I claim assets over 5 years old?
No — only assets purchased within the last 5 years are eligible for deductions.
What should I do with invoices?
Keep all original invoices and receipts. Submit only the expense details, but retain the documents for verification purposes.