About 4 million Sri Lankans aged 18 and above have yet to register for a Taxpayer Identification Number (TIN), Inland Revenue Department (IRD) Commissioner Nandana Kumara has said.
Speaking in a televised interview, Kumara said around 13 million people have already registered, out of an estimated adult population of 17 million. That leaves roughly one adult in four without a number.
He said the law already requires everyone aged 18 and above to obtain a TIN. Until recently, he said, the requirement had been enforced only for certain essential purposes.
Kumara also addressed public worries about registration. Holding a TIN does not by itself mean a person must pay tax, he said, and tax is payable only by those who meet the relevant liability criteria.
The Commissioner said misunderstandings about the process had created unnecessary fear among some members of the public, and that some of those concerns persist. He said the legal requirement was introduced to streamline and improve the tax system.
Background
A TIN is a unique number issued by the IRD to identify a person for tax purposes. It is used when dealing with the department and, increasingly, when people carry out certain official or financial transactions that require proof of registration.
Under Sri Lankan law, income tax is charged only on income above a threshold set in legislation and revised from time to time. Registering for a TIN is a separate step from becoming liable for tax, which is the distinction Kumara stressed.
A requirement to produce a TIN for a set of transactions took effect on 1 November, and crowds were reported at IRD offices as people queued to register. The Commissioner’s figures indicate that a large group of adults has not yet done so.
What it means
Adults who do not yet have a TIN may find they need one when they deal with offices or institutions that ask for the number. Registering earlier, rather than at the point of a transaction, avoids delays at the counter.
The IRD’s position is that registering does not create a tax bill. A person whose income falls below the legal threshold is not required to pay income tax merely because they hold a TIN.
Sri Lankans living abroad who own property, run businesses or deal with state institutions at home may also be asked for a TIN. Anyone unsure of their position should check the IRD’s official website or contact the department directly for current registration procedures.
