Filing your Advance Personal Income Tax (APIT) return is a crucial responsibility for employers in Sri Lanka. It ensures compliance with tax laws, avoids penalties, and keeps your business in good standing with the Inland Revenue Department (IRD).
If you’re unsure about the APIT return filing process, this guide will walk you through everything you need to know—from submission steps to required documents, employer responsibilities, and penalties for non-compliance. If you’re a business owner or employer, this guide will help you confidently file your APIT return before the April 30th deadline. Let’s dive in.
What is APIT Return Submission?
APIT Return Submission refers to the process where employers report and submit the tax deductions made from employees’ income to the Inland Revenue Department (IRD).
As an employer, you must file an annual statement and detailed schedules listing every deduction made throughout the financial year. The deadline? April 30th of every year.
Failing to submit your return on time could result in penalties, legal action, or even default assessments issued by the IRD.
Step-by-Step Guide to Submitting Your APIT Return
Filing your APIT return is a straightforward process if you know the right steps. To help you navigate the system smoothly, here’s a detailed breakdown of the submission process:
Step 1: Access the IRD e-Services Portal
Start by visiting the Inland Revenue Department (IRD) website at www.ird.gov.lk. From the top menu, select e-Services, then click Access to e-Services.
Step 2: Log in to Your Taxpayer Account
You will need to log in using your Taxpayer Identification Number (TIN), IRD PIN, and SSID (if applicable).
Depending on your tax profile, follow the appropriate login method:
- Individual Taxpayer: Enter your TIN, IRD PIN, and captcha text, then click Login.
- Corporate Taxpayer: Enter your SSID (Staff/Tax Agent ID), IRD PIN, and Corporate TIN, then click Login.
- Tax Agent: Enter your Tax Agent Reference Number, SSID, and IRD PIN, then click Login.
Step 3: Navigate to the APIT Return Section
Once logged in, you will see the main dashboard with multiple tax filing options.
- Select Pay As You Earn (PAYE) / Advance Personal Income Tax (APIT) from the Return / Schedule Management menu.
- Choose the relevant assessment year (e.g., 2023/24) and click Proceed.
Step 4: Confirm Your Readiness to File
A confirmation pop-up will appear, asking if you are ready to begin filing your tax return. Click “Yes” to proceed.
Step 5: Complete the APIT Return Forms
You will now be directed to the APIT Return Filing Page, where you must enter key details. The form consists of two main sections and several schedules:
- PART I: Annual Information Summary
- PART II: Monthly Information Summary
- Schedules
- Schedule 01 – if applicable
- Schedule 02 – if applicable
- Schedule 03 – if applicable
Step 6: Verify Matching Rules Among Forms and Schedules
To ensure accuracy, your APIT return system checks whether the data in PART I, PART II, and the uploaded schedules match correctly.
Matching rules include:
- PART I must match the totals in PART II.
- PART I and PART II must align with Schedule 01 (for tax-deducted employees).
- PART I must match Schedule 02 (for one-time payments).
- PART I must match Schedule 03 (for employees with no tax deducted).
Step 8: Submit the APIT Return
Once all details are entered and verified:
- Review your APIT return carefully.
- Ensure all required schedules have been uploaded.
- Click Submit to finalize your return.
Upon submission, you will receive a confirmation notification. Save or print this confirmation for your records, as it serves as proof of submission.
Step 9: Pay Any Outstanding APIT Deductions
If you have outstanding APIT deductions, ensure that they are remitted to the IRD promptly to avoid penalties. Payments can be made through the IRD online banking portal or designated tax collection banks.
If you want more information steps of submitting your APIT return, visit here.
Required Documents for APIT Return Filing
To ensure a smooth filing process, employers must have all required documents prepared before starting their submission. The key documents include:
Annual Statement of APIT Deductions
This statement is a comprehensive summary of all tax deductions made throughout the financial year. It should include details of each employee’s gross salary, tax-deductible allowances, and the total APIT deducted.
Schedules for Employment Tax Deductions
Employers must submit various supporting schedules to provide additional details on tax deductions. These include:
- Schedule 01: Covers tax deductions from primary and secondary employment.
- Schedule 02: Used for one-time payments such as bonuses, gratuities, and terminal benefits.
- Schedule 03: Reports employees whose earnings were below the taxable threshold and had no tax deducted.
T10 Certificates for Employees
Employers must issue T10 Certificates to each employee. This document summarizes the total income earned and tax deducted during the year, enabling employees to file their personal tax returns.
NIC & TIN Numbers for All Employees
Employers must ensure they have the National Identity Card (NIC) numbers and Taxpayer Identification Numbers (TIN) of all employees covered under the APIT system.
Employer Responsibilities for APIT Filing
As an employer, your obligations don’t stop at tax deductions. You must also:
- Deduct APIT correctly – Ensure accurate deductions from employees’ income at the time of payment.
- Remit the deducted APIT to IRD – The tax you deduct must be paid to the IRD on time.
- Issue T10 Certificates – Provide employees with T10 certificates so they can file their personal tax returns.
- File APIT Returns on time – Submit all required statements and schedules before April 30th to avoid penalties.
Failure to meet these obligations can lead to severe penalties and legal consequences.
Penalties for Late or Incorrect APIT Filing
Failing to file your APIT Annual Statement on time can have serious consequences.
If your return is not submitted within 14 days of an IRD notice, any of the following actions may be taken:
🔹 Penalties under Section 178: Employers who fail to file the return on time will be subject to late filing penalties.
🔹 Legal Action Under Section 190(1): The IRD has the authority to initiate legal proceedings against employers who do not comply.
🔹 Default Assessments Under Section 133(1): If the employer does not submit a return, the IRD may issue a default assessment, estimating tax liabilities based on available records.
🔹 Public Disclosure of Non-Compliant Employers: The Commissioner General of Inland Revenue may publish a list of employers who have failed to file their APIT returns.
Avoid these penalties by ensuring you submit your APIT return accurately and on time!
File Your APIT Return With Simplebooks
Filing your APIT return doesn’t have to be complicated. By following the correct procedures and submitting before the April 30th deadline, you can avoid penalties and stay compliant.
If you need assistance, our expert tax team is here to help! We ensure that your APIT return is filed accurately and on time so you can focus on running your business.
