Sri Lanka

{"ftc_utility":"medium","fbar_trigger_notes":"US expats holding Sri Lankan bank accounts must report balances if aggregate foreign financial accounts exceed $10,000 at any point during the year. Sri Lankan banks are not FATCA-reporting institutions uniformly, but FBAR obligations are based on account existence regardless of local reporting. Expats should file FinCEN 114 annually if threshold is met.","ftc_utility_reason":"Sri Lanka taxes residents on worldwide income at progressive rates up to 30%. US expats who owe Sri Lanka income tax can use the Foreign Tax Credit to offset their US tax liability on the same income. FTC utility is medium because Sri Lanka rates are lower than top US rates for higher earners, meaning residual US tax may remain after applying the FTC. The absence of a tax treaty means no specific tie-breaker or sourcing rules, which can complicate FTC calculations.","presence_day_count_notes":"Sri Lanka does not impose rigid short-stay visa caps on US citizens for tourist entry (typically 30 days visa-free, extendable). To qualify for the bona fide residence test, the individual must establish legal residency. Long-term stays require a residential visa or employment pass. The 330-day physical presence test is achievable but requires careful tracking if the individual makes frequent trips out of Sri Lanka.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":8400,"local_tax_rate_on_earned_income":0.3,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by a Sri Lanka tax resident is assessable as employment income or other income and taxed at progressive rates up to 30%. Sri Lanka government pensions may receive separate treatment under domestic law; private and foreign pensions are fully taxable.","tax_rate":0.3,"locally_taxed":true},"social_security":{"notes":"No US-Sri Lanka totalization or income tax treaty exists. US Social Security benefits received by a Sri Lanka tax resident are foreign-source income subject to Sri Lanka income tax at progressive rates up to 30%.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"No US-Sri Lanka tax treaty exists. Roth IRA distributions, although tax-free in the US, are not automatically exempt in Sri Lanka. A resident recipient would likely include such distributions in income. The tax treatment depends on characterization under local rules; absent a treaty, no exemption applies.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"Sri Lanka and the United States do not have a bilateral income tax treaty. US 401(k) and IRA distributions received by a Sri Lanka tax resident are treated as foreign-source income. Sri Lanka taxes residents on worldwide income; such distributions would be included in assessable income and taxed at progressive rates up to 30%. No treaty protection is available.","tax_rate":0.3,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.1,"notes":"Sri Lanka imposes a 10% capital gains tax on gains from disposal of investment assets, including land, buildings, and shares. Gains on disposal of a principal residence may be exempt subject to conditions.","details":{"tax_type":"Capital Gains Tax","country_name":"Sri Lanka","country_iso_code":"LKA","source_references":["Inland Revenue Act No. 24 of 2017 (Sri Lanka)","Inland Revenue Department of Sri Lanka","PwC Worldwide Tax Summaries - Sri Lanka (training knowledge)"],"last_verified_date":"2026-06-03","general_description":"Capital gains tax was reintroduced in Sri Lanka under the Inland Revenue Act No. 24 of 2017, effective 1 April 2018. A flat 10% rate applies to gains from disposal of investment assets. Assets held and disposed of in the same year of assessment are taxed at the same 10% rate. Gains on disposal of a primary residence are exempt if conditions on use and reinvestment are met.","corporate_capital_gains":{"rate":0.1,"tax_treatment":"Corporate capital gains on disposal of investment assets are taxed at a flat 10% rate, separate from the standard corporate income tax rate of 30%."},"individual_capital_gains":{"rate":0.1,"tax_treatment":"Individual capital gains on disposal of investment assets are taxed at a flat 10% rate. The primary residence exemption applies where the individual has occupied the property as their principal place of residence and meets reinvestment conditions."}}}

{"notes":"Dividends paid by resident companies are subject to a 15% withholding tax (WHT) for both resident and non-resident recipients. This WHT is generally a final tax for individuals. Non-resident recipients may benefit from reduced rates under applicable double tax treaties.","rates":[{"rate":0.15,"type":"withholding","notes":"Standard WHT rate on dividends paid by resident companies; final tax for individuals. Rate applies to both residents and non-residents absent treaty relief."},{"rate":0.1,"type":"withholding","notes":"Reduced treaty rate available under select double tax agreements, e.g. Singapore, India. Verify applicable treaty before relying on reduced rate."}]}