TAX TABLE NO: 01
Monthly Tax Deductions from Regular Profits from Employment
(Applicable for all resident and non-resident but citizen employees who have furnished primary declarations to their
employers and resident and non-resident but citizen employees have one employment)
01. Tax Table No: 01 should be applied to deduct tax from regular profits from employment payable to every
employee who is resident or non-resident but citizen, during a calendar month. Tax deduction should be
compulsorily made regardless of his consent.
02. Regular profits from employment include:
i. Wages, salary, commission, overtime pay, travelling allowance, and other allowances, fees, pension or such
other profits from employment that arise in any pay period,
ii. Payment on housing, conveyance, electricity, telephone bills and entertainment etc.,
iii. Payment on medical bills and insurance policies (other than discharge or reimbursement of the person's
dental, medical or health insurance expenses where the benefit is available to all full-time employees on
equal terms),
iv. Payments or transfers to another person for the benefit of the individual or an associate person of the
individual;
03. In preparing this Tax Table, Rs. 100,000.00 per month as personal relief has already been deducted. Hence,
tax deductions should be made from the profits from employment applying Tax Tables without deducting any
sum from such profits from employment.
04. With regard to any employee whose monthly total regular profits from employment (total of employment
income described in paragraph 02 above) is less than Rs. 100,000.00, but cumulative profits up to any month
during the second three-month period of the Y/A 2022/2023 exceeds Rs. 300,000.00, then tax deductions
should be made commencing fromthat month applying Tax Table No: 05.
05. In the case where an employee enters in to employment or retires during the year of assessment (earned
regular profits from employment for a period less than 3 months) to deduct his/her tax, Tax Table No. 05
should be applied.
06. If any employee is paid salary arrears for a reason such as service suspension, then to deduct tax from such
salary arrears, Tax Table No. 02 should be applied, unless a direction is issued by the Commissioner General or
any officer authorized by him.
07. Other than the exempt amounts given in the Third Schedule of the Inland Revenue Act, No. 24 of 2017, no
exemptions are available for employment income with effect from 01 April 2018.
Note: For deduction of tax on Lump-sum Payments, Tax Table No: 02 should be applied. For deduction of tax on
Once-and-for-all Payments, Tax Table No: 03 should be applied.
Summarized Tax Table - Regular Profits from Employment
Monthly regular profits from employment
(Taxable) Tax
1. Monthly regular profits from employment up to Rs.
- Relief from Tax
100,000/-
2. Monthly regular profits from employment exceeding 6% of monthly regular profits from
Rs. 100,000/- but not exceeding Rs. 141,667/- - employment less Rs. 6,000/-
3. Monthly regular profits from employment exceeding 12% of monthly regular profits
-
Rs. 141,667/- but not exceeding Rs. 183,333/- from employment less Rs. 14,500/-
4. Monthly regular profits from employment exceeding 18% of monthly regular profits
Rs. 183,333/- but not exceeding Rs. 225,000/- - from employment less Rs. 25,500/-
5. Monthly regular profits from employment exceeding 24% of monthly regular profits
Rs. 225,000/- but not exceeding Rs. 266,667/- - from employment less Rs. 39,000/-
6. Monthly regular profits from employment exceeding 30% of monthly regular profits
Rs. 266,667/- but not exceeding Rs. 308,333/- - from employment less Rs. 55,000/-
7. Monthly regular profits from employment exceeding 36% of monthly regular profits
Rs. 308,333/- - from employment less Rs. 73,500/-
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