The Inland Revenue Department (IRD) has declared that individuals failing to obtain a Tax Identification Number (TIN) will face a penalty of Rs. 50,000. The new regulation, effective from January 1, 2024, requires all individuals aged 18 and above, or those reaching 18 after this date, to register with the IRD and acquire a TIN.
While it is mandatory for those earning an annual income exceeding Rs.1.2 million to pay income tax, the Ministry of Finance clarified that possessing a TIN does not automatically imply liability for income tax.
In a bid to streamline processes, the TIN is now mandatory for various activities, including opening a current account, seeking building plan approval, registering a motor vehicle, renewing a license, and registering land title deeds.
The public has been provided with three options for TIN registration:
Online Registration:
Visit the Inland Revenue Department website www.ird.gov.lk.
Access e-Services and click on "Taxpayer Registration."
Choose the relevant category, fill and submit the application form.
Upon review, a certificate with the TIN and a one-time PIN will be emailed.
Create a web account with online facilities using the provided details.
Registration by Post or In-Person:
Download the Application Form for Registration from the IRD website.
Complete the form and submit it to the Primary Registration Unit at the IRD Head Office or any Regional/Metropolitan Office.
The IRD emphasized that for online registration, a PDF of the National Identity Card (NIC) must be uploaded, including scans of both sides. If there's a change in the address on the NIC, a copy of an acceptable document should also be uploaded.
The initiative aims to enhance tax compliance and ensure a transparent financial system. Members of the public are encouraged to adhere to the new requirements to avoid penalties and streamline their financial transactions.
