Understanding the Mandatory Registration of Resident Persons in Sri Lanka under Section 102 of the Inland Revenue Act

Introduction: As we usher in the new year, residents of Sri Lanka face a significant change in tax regulations. Effective January 01, 2024, individuals aged 18 or older, or those reaching this milestone after the specified date, are obligated to register with the Inland Revenue Department and obtain a Taxpayer Identification Number (TIN). Additionally, individuals earning an income exceeding Rs. 1,200,000 for a year of assessment must register for Income Tax.

Consequences of Non-Compliance: Failure to adhere to the registration requirements will result in the Inland Revenue Department automatically registering individuals, subjecting them to penalties not exceeding Rs. 50,000. It is crucial for residents to proactively register to avoid unnecessary penalties and legal complications.

Notification and Downloadable Gazette: The official notification outlining the registration requirements can be found in the extraordinary gazette available for download on the Inland Revenue Department’s website. Interested individuals can access the gazette through this link.

Methods of Registration:

1. Online Registration:
   • Visit the Inland Revenue Department website at www.ird.gov.lk.
   • Access e-Services and click on “Taxpayer Registration.”
   • Choose the relevant category and complete the application form.
   • After submission, the department will review the application.
   • Upon approval, a certificate containing the TIN and a one-time PIN will be emailed to the provided address.
   • This process also allows individuals to create a web account for online facilities.
2. Registration by Post or In-Person:
   • Obtain a physical copy of the Application Form for Registration from the official website here.
   • Complete the form and submit it to the Primary Registration Unit on the 2nd Floor of the IRD Head-office or the nearest Regional/Metropolitan Office.

Required Documents: For online registration, a PDF of the National Identity Card (both sides) must be uploaded. If there has been a change in the address specified on the NIC, a copy of an acceptable document reflecting the new address should also be uploaded.

Conclusion: As the deadline for mandatory registration approaches, it is essential for eligible individuals to familiarize themselves with the process and complete the registration to ensure compliance with the Inland Revenue Act. Proactive registration not only avoids penalties but also enables individuals to manage their tax obligations efficiently. Stay informed, adhere to the guidelines, and embrace the changes for a financially responsible and legally compliant future.

Isura Sirisena

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