Tax Optimized Income
Maximise Your Take-Home Pay Legally
New 2025 Rules for Foreign Income in Sri Lanka
Under the Inland Revenue (Amendment) Act, 2025:
Foreign income is no longer tax-exempt
- It is taxed progressively, not at a flat rate
- The cap is 15%, but most workers pay much less
- Receiving your income in USD, GBP, or LKR makes no difference—what matters is:
- It’s from a foreign source, and
- It’s remitted via a Sri Lankan bank
Example Scenario
You earn USD 1,000/month, converted at LKR 300/USD = LKR 300,000/month
Although the highest band hits 15%, your effective tax rate is much lower when calculated progressively.
Tax Breakdown:
| Income Band | Rate | Monthly Tax |
|---|---|---|
| Up to LKR 150,000 | Relief | – |
| First LKR 83,333 | 6% | Rs. 4,999.98 |
| Next LKR 66,667 | 15% | Rs. 10,000.05 |
| Total Tax | — | Rs. 15,000.03 |
| Effective Tax Rate | — | 5.00% |
Calculate Your Tax in Seconds
Want to know exactly how much tax you’ll pay based on your actual monthly income and exchange rate?
Enter your monthly income in USD or GBP
- Enter the current exchange rate
- See your total tax, effective rate, and bracket breakdown
💡Bookmark it—it’s free, accurate, and updated for the latest IRD regulations.
Claim Legitimate Work-From-Home Expenses
You can submit a Personal Profit & Loss (P&L) to the IRD and reduce your taxable income by showing deductible expenses such as:
- Rent or mortgage
- Electricity and internet bills
- Laptop and work equipment
- Mobile/data plans
- Home office setup
We’ll guide you on what to include and provide templates to help prepare your P&L.
How We Help You
We support you by:
Structuring your salary to reduce PAYE impact
Ensuring your foreign income qualifies for progressive tax bands
Helping you prepare a valid P&L statement to reduce tax further
Staying compliant with IRD rules while maximising net income
Get Started
To take advantage of our tax optimization services:
- Sign up at RemoteJobsInAsia.com
- During your job application process, mention your interest in tax optimization
- Once you receive a job offer, our tax experts will contact you to create a customized plan
- We’ll work with you and we’ll guide you through tax structuring and P&L prep
At RemoteJobsInAsia.com, we’re committed to not just finding you a great job, but helping you make the most of your earnings. Let us help you navigate the world of international remote work and tax optimization
FAQs
Do I need a USD account?
No. You can receive income into a Sri Lankan bank in any currency, as long as the income is foreign-sourced.
Can I really claim rent and bills as deductions?
Yes. If you’re working from home, they’re eligible and reduce your taxable income.
Is this legal?
Yes. Everything we do follows IRD guidance and Sri Lankan law.