Government announces a plan linking NIC to TIN for streamlined IRD registration.
By: Staff Writer
January 27, Colombo (LNW): The government has been compelled to simplify the procedure of obtaining taxpayer information number with the registration of inland revenue department to open a tax file as it has created confusion and unavoidable burden of all citizens of over 18.
Even though the government has made it mandatory to register with the Inland Revenue Department and obtain a tax payer information number for all individuals who are 18 years of age or more, it does not mean that all of them have to pay tax.
In this context ,State Minister of Finance Ranjith Siyambalapitiya has announced ongoing efforts to link a person’s National Identity Card (NIC) number to their Taxpayer Identification Number (TIN).
This initiative aims to streamline the registration process for nearly 15 million individuals aged 18 and above, utilising a bio database to assign TIN numbers based on the NIC number.
Siyambalapitiya stated that a program is in progress to provide TIN numbers in groups, with the active support of the Department of Registration of Persons.
This strategic decision, made during a recent discussion, aims to enhance accessibility for the general public, providing an easier avenue for obtaining TIN numbers alongside the ongoing regular system.
“This transition will contribute to the creation of a transparent data system related to State revenue,” he added.
With the upcoming introduction of digital identity cards, he said the Government envisions the establishment of a robust data system that seamlessly integrates various aspects.
The government has issued a gazette notification No 2334/21 dated 31 May 2023 In accordance with Section 102 of the Inland Revenue Act making the mandatory order relating to the registration with the IRD and obtain a TIN (Taxpayer Identification Number)”.
Accordingly, the Gazette Notification has been issued prescribing 14 categories of persons who should register with the IRD and obtain a TIN
These classes of persons listed included doctors, architects, bankers, lawyers of the Supreme Court, accountants, engineers Quantity Surveyors and persons with registered vehicles (except three-wheelers, motorbikes, and hand tractors)
The other categories are persons who registered their businesses in Divisional Secretariats, the persons who have vehicles registered (other than Three wheelers, Motor bicycles and Hand Tractors) in Department of Motor Traffic, the persons who have purchased or acquired by virtue of deeds transfer of any immovable property in Sri Lanka on or after 01 April 2018.
Employee whose monthly contribution from both employee and employer to any Provident Fund is more than LKR 20,000 ,any individual who obtains approval for a building plan from a Local Authority any other individual who receives payment of Rs I00,000 per month or Rs 1.2mn per annum will have to obtain TIN.
