The Social Security Contribution Levy (SSCL) was introduced in Sri Lanka under Act No. 25 of 2022. It applies to manufacturers, importers, service providers, wholesalers, and retailers whose turnover exceeds the specified thresholds. Currently, the rate is set at 2.5% on the taxable turnover.
Registration Threshold
Businesses are liable for registration if their taxable turnover exceeds LKR 120 Million per annum or LKR 30 Million in any quarter.
Computation of Taxable Turnover
The SSCL is computed on the turnover from business operations. For manufacturers and service providers, it is calculated on 100% of the turnover. For distributors and retailers, certain deductions are permitted depending on regulations.
SSCL Deadlines
- Payment of Tax: Payable in monthly installments on or before the 20th day of the month succeeding the relevant month.
- Filing Returns: The SSCL return must be submitted on a quarterly basis on or before the 20th day of the month following the end of the quarter.