TIN demand surges after withholding tax rate hike

By Chaturanga Pradeep Samarawickrama

Most accountholders have sought to obtain the Taxpayer Identification Number (TIN), following the government’s decision to increase the withholding tax rate from 5 percent to 10 percent, effective from April 1, a senior official attached to the Inland Revenue Department (IRD) said.

He told Mirror Business that people who do not currently pay taxes have started visiting the IRD provincial offices, financial institutions and IRD head office to obtain their TIN.

As a result, the number of TIN registrations at the IRD has reached 11 million, though most of the TINs are yet to be issued to the respective individuals.

The senior official said that most of the TINs generated by the IRD were not sent to the accountholders because the provided addresses were inaccurate and many lacked valid email addresses or contact numbers.

The submission of information for TIN registration was made compulsory last year but there was no satisfactory response from the public. As a result, the IRD decided to generate TINs based on the information it had received.

If an accountholder’s address is correct, the IRD will post the TIN directly to that address, without requiring them to visit the IRD. The IRD system has been developed to notify the accountholders of their TIN details but it still requires accurate personal information.

Due to the uniqueness of the National Identity Card number, the system has already generated the TIN for most individuals over 18 years of age but these have not been issued because of the lack of correct addresses and contact details.

The senior official told that the public has been urged to visit the official IRD website to obtain their TIN, without physically coming to the department.

No April 30 deadline for WHT declarations: IRD Commissioner says

The Commissioner General of the Inland Revenue Department (IRD) yesterday denied a report circulating on social media claiming that April 30 is the last date for the individuals subject to the withholding tax (WHT) on interest income but without taxable income to submit their self-declaration to the banks and financial institutions.

The Commissioner General clarified that a false claim is being spread, suggesting that April 30 is the deadline for submitting the self-declarations for exemption from the WHT deduction on interest income for the individuals with no taxable income.

However, the Commissioner General emphasised that no such deadline has been set.

The declaration (requesting exemption from the WHT deduction) must be submitted before receiving the interest payments on the relevant deposits.

He also clarified that the Taxpayer Identification Number is not required to submit this declaration, subject to providing the other details requested by the IRD. (CPS)