Not every person who obtains a TIN (Taxpayer Identification Number) is required to pay tax.

The Department of Inland Revenue emphasizes that not every person who obtains the unique 'TIN' (Taxpayer Identification Number) for identifying taxpayers is required to pay taxes, and taxation only applies to those whose income exceeds the limits stipulated by the government. Mr. Nandana Kumara, Commissioner of Tax Policy at the Department of Inland Revenue, stated this while addressing a press conference held at the Government Information Department Auditorium.

According to him, the department has successfully issued this unique number to nearly 130 lakhs (13 million) individuals in the country during the period from January 1st, 2024, to date. Currently, there is a very high level of interest among Sri Lankans in obtaining this number.

Following the introduction of this new system, the number of tax files in the country has increased by approximately 1.2 million, and a primary expectation of issuing this number has been to bring certain individuals eligible to pay taxes into compliance with the system. The Commissioner of Tax Policy pointed out that currently, approximately 40% of the country's population is at a non-tax-paying level, and 59% of the targeted income expected from VAT has already been earned. It was also highlighted that the proper implementation of tax systems would bring positive benefits to a segment of society.

The 'TIN' number issued by the Department of Inland Revenue is a unique 9-digit identification, and it is a specific factor used only for taxation-related activities, similar to the National Identity Card number. Obtaining this number is mandatory for every Sri Lankan citizen who has completed 18 years of age, and it can be easily obtained through the online method. Although individuals whose annual income exceeds 1.2 million rupees, i.e., earning more than 100,000 rupees per month, must officially open a Tax File, they are only required to pay taxes if they exceed the relevant limits. Furthermore, a businessman must earn an annual income of more than 1.8 million rupees to pay taxes, while businesses earning less than this amount have the opportunity to obtain only the 'TIN' number and carry out their activities as usual without any hindrance.

It is noteworthy that the government has currently made it mandatory to present this 'TIN' number for various daily and professional requirements. Accordingly, this number is essential when opening current accounts in banks, obtaining approvals for building plans, vehicle registration, and transferring vehicle ownership. In addition, the 'TIN' number must be mandatorily presented to fulfill several government services such as registering ownership of land or other properties, customs procedures, and obtaining various business licenses.