Foreign Remittance Tax Clearance
Sending money abroad for investment, education, family support, or business? We prepare the tax clearance and withholding tax paperwork your bank needs to release the transfer.
Since 1 January 2025, Sri Lankan banks and Authorized Dealers require a Tax Clearance Certificate before processing most outward remittances — payments for overseas investment, education, medical treatment, family maintenance, business transactions, and more. Only payments on the IRD’s specific negative list are exempt.
If your remittance is a payment subject to withholding tax — such as fees, interest, dividends, or royalties to a non-resident — the correct withholding tax must be calculated and accounted for before the balance can be remitted. Where a Double Tax Avoidance Agreement (DTAA) applies, a valid Tax Residency Certificate can reduce the applicable rate.
We handle the full clearance process so your transfer isn’t delayed at the bank: confirming whether you need a TCC, calculating any withholding tax due, preparing the application, and following it through with the IRD.
How we handle it
A clear, structured process from first contact to completed clearance.
Tell us about the remittance
Amount, purpose, and recipient — we assess whether it needs a TCC or falls under an exempt category.
Withholding tax check
If tax applies, we calculate the correct amount and check whether a DTAA reduces the rate.
Document preparation
Invoices, agreements, tax residency certificate, and paying-in-slip prepared and reviewed.
IRD submission
We submit your Tax Clearance application and manage any follow-up queries.
Clearance to your bank
You receive the TCC to present to your bank or Authorized Dealer to release the transfer.
Scope of service
Included
- Negative-list & exemption check
- Withholding tax calculation
- DTAA rate assessment (with tax residency certificate)
- TCC application & IRD submission
- Follow-up until certificate is issued
Not Included
- The remittance/transfer itself (arranged via your bank)
- Bank transfer & foreign exchange fees
- Withholding tax payment (paid by you to the IRD)
- Tax residency certificate issuance by a foreign tax authority
Common questions
Which outward remittances are exempt from needing a Tax Clearance Certificate?
The IRD maintains a specific negative list of exempt payments — including payments for imported goods, certain loan repayments, pension remittances, government bond transactions, and salary already taxed under APIT with a T-10 certificate. We check your specific payment against this list.
I’m sending money for my child’s education abroad — do I need a TCC?
Education remittances generally require a Tax Clearance Certificate under the current rules. We’ll confirm your exact requirement and prepare the application.
What is withholding tax on a remittance, and who pays it?
If the remittance is a payment for services, interest, dividends, or similar income to a non-resident, Sri Lankan withholding tax may apply on the gross amount before the balance is remitted. The remitter is responsible for accounting for it.
Can I reduce the withholding tax rate?
If Sri Lanka has a Double Tax Avoidance Agreement with the recipient’s country, a lower treaty rate may apply — provided the recipient supplies a valid Tax Residency Certificate from their home tax authority.
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