On 22 September 2026, the Sri Lanka Inland Revenue Department (IRD) issued Circular No. SEC/2026/E/07, mandating the submission of a Taxpayer Identification Number (TIN) certificate for a defined list of specified transactions. This directive operationalizes amendments to the Inland Revenue Act aimed at widening the tax net, improving compliance tracking, and curbing tax evasion across high-value economic activities. The circular applies to all persons engaging in transactions such as property transfers, motor vehicle registrations, share transfers, and import/export operations exceeding prescribed thresholds. Effective immediately, taxpayers and authorized agents must present a valid TIN certificate issued by the IRD at the point of transaction registration with relevant government agencies, including the Registrar General, Department of Motor Traffic, and Sri Lanka Customs. Non-compliance will result in rejection of the transaction and potential penalties under the Act.
Key Takeaways
- Expanded TIN Requirement Scope: The circular extends mandatory TIN certification to a broader range of specified transactions, including immovable property transfers, motor vehicle registrations, share transfers in private companies, and customs declarations for imports and exports above defined value thresholds. This significantly increases the coverage of taxpayer identification in the formal economy.
- Operational Compliance for Intermediaries: Lawyers, notaries, company secretaries, customs brokers, and vehicle registration agents are now legally obligated to verify and retain copies of TIN certificates before processing any specified transaction. The IRD will conduct audits of these intermediaries to ensure adherence, with penalties for facilitation of non-compliant transactions.
- Digital Verification and Real-Time Integration: The IRD has launched an online TIN verification portal allowing real-time validation of certificates by authorized agencies. Taxpayers must ensure their TIN status is active and updated; expired or deregistered TINs will be rejected, requiring immediate rectification through the IRD e-services platform to avoid transaction delays.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement