November 02, Colombo (LNW): Sri Lankans undertaking a range of important financial, property and administrative transactions are now required to produce a valid Taxpayer Identification Number (TIN), following the implementation of new requirements announced by the Inland Revenue Department (IRD).
The regulation, which came into effect yesterday, makes TIN verification compulsory when accessing several services, including opening bank accounts, registering vehicles, obtaining credit cards and securing approval for building plans.
The requirement also extends to applications for vehicle licence renewals, land and title registrations, business registrations and the transfer of shares in companies incorporated in Sri Lanka.
Under the new arrangement, banks, financial institutions and other relevant authorities handling these transactions must check the validity of an applicant’s TIN before proceeding with the requested service.
Individuals who have not yet registered for a TIN can complete the process through the IRD’s online e-Services platform. The system also provides an option for those who already possess a TIN to check its validity without having to visit an Inland Revenue office.
The department has further clarified that applicants do not necessarily need to produce the original TIN certificate. Once the number has been successfully verified online, a printed document displaying both the individual’s National Identity Card (NIC) number and corresponding TIN will be accepted as proof.
Meanwhile, the IRD has reiterated that obtaining a TIN is a legal requirement for all individuals aged 18 and above. However, the department has sought to dispel a common misconception that registration automatically makes a person liable to pay income tax.
According to the clarification, individuals are required to pay income tax only if their annual income exceeds Rs. 1.8 million.
The department’s clarification is intended to distinguish between the obligation to register for a TIN and the separate requirement to pay income tax, as the two are not automatically linked.
Members of the public who have yet to obtain their identification numbers are therefore encouraged to complete the registration process through the IRD’s online services to avoid potential delays when carrying out transactions covered by the new requirements.
