TIN to be made mandatory when opening bank accounts
- CNL Reporter
- May 20, 2025
- Banking and Financial
- TIN
- 0 Comments
The Cabinet of Ministers has approved the proposal to initiate necessary amendments to the Inland Revenue Act No. 24 of 2017 in order to make it mandatory to furnish the Tax Identification Number (TIN) when opening all types of bank accounts.
Legal provisions to increase the withholding tax rate from 5% to 10% were introduced by the Inland Revenue (Amendment) Act No. 2 of 2025 with effect from April 1, 2025 due to charging advance income tax even from individuals with an income not exceeding Rs. 1.8 million which is the annual revenue limit to recover tax from. T
he measure was taken since depositors and low income earning individuals are apparently facing inconvenience.As a solution to the issue, it has been proposed to introduce a methodology to present a self-declaration by the individuals with a lower income than the tax free margin.
