Public Finance Data and Analysis
Free and Open Access to
Sri Lanka will implement an Imputed Rental Income Tax in Q2 2025, targeting owners of multiple unoccupied homes to increase state revenue by 0.2% of GDP in 2025 and 0.4% in 2026.
Sri Lanka will implement an Imputed Rental Income Tax in the second quarter of 2025, targeting individuals with more than one house that has not been rented out, according to State Minister of Finance Ranjith Siyambalapitiya. The tax, proposed by the IMF, will exempt the first house but apply to additional houses based on government valuations of potential rental income. The focus will be on holiday homes, and the tax aims to increase state revenue by 0.2% of GDP in 2025 and 0.4% in 2026. The IMF states this tax, which targets the deemed rental income of properties, is consistent with raising central government revenue.
