Deadline Extended For TIN

There’s been a buzz in the air lately, and it’s all about TIN. If you’re 18 or older in Sri Lanka, chances are you’ve heard whispers about mandatory registration with the Inland Revenue Department (IRD) and obtaining a Taxpayer Identification Number (TIN). But fear not, dear reader, for this blog aims to cut through the confusion and bring you clarity on this matter. Our tax team contributed to the creation of this article, drawing inspiration from a piece published by the Sunday Times, available for reference here.

Firstly, let’s address the elephant in the room: you don’t automatically have to pay taxes just because you get a TIN! This common misconception has many worried, but State Finance Minister Ranjith Siyambalapitiya has been quick to reassure the public. Obtaining a TIN simply brings you into the IRD’s fold, making it easier to access various government services and participate in the digitalization of Sri Lanka’s public sphere.

However, while registration is mandatory for everyone over 18, not everyone falls under the same umbrella. The government has outlined 14 specific categories of individuals who must register, including professionals like doctors, lawyers, and engineers, as well as those with registered vehicles (excluding three-wheelers, motorbikes, and hand tractors). Additionally, individuals earning high salaries, contributing substantially to provident funds, or engaging in significant property transactions also fall under the mandatory registration umbrella.

Now, some legal minds have raised concerns about the order’s legality, questioning whether it aligns with the powers granted under the Inland Revenue Act. This debate is ongoing, but regardless of the outcome, obtaining a TIN remains beneficial for most individuals.

Here’s why:

• Convenience: A TIN acts as your unique identifier within the IRD system, streamlining future interactions with government agencies. Forget the hassle of carrying multiple documents; your TIN provides easy access to services like e-filing taxes or applying for permits.
• Transparency: Registering brings you into the formal economy, promoting financial clarity and potentially enhancing your creditworthiness. This can be particularly advantageous when applying for loans or engaging in business ventures.
• Future-proofing: As Sri Lanka embraces digitalization, a TIN becomes your key to a seamless government experience. Imagine a world where accessing social benefits, managing property taxes, or even applying for a driving license is all done conveniently through an online portal – your TIN makes this a reality.

Of course, the deadline for registration has been extended to April 1st, 2024, providing ample time to gather information and register at your own pace. The IRD website offers a user-friendly online platform for registration, and there are plenty of resources available to guide you through the process.

Remember, having a TIN is not about tax burden; it’s about making your life easier and paving the way for a transparent and efficient future. So, breathe a sigh of relief, grab your National Identity Card, and get ready to join the IRD family!