The Inland Revenue Department (IRD) has announced a series of tax reforms following the enactment of the Inland Revenue (Amendment) Act, No. 11 of 2026.

Key changes include tax exemptions on gains from the sale of personal motor vehicles, expanded 5% withholding tax on professional service fees, revised capital gains tax rates, relief for certain salaried employees, new TIN requirements for various transactions, and stricter penalties for non-compliance. 

The amendments also introduce tax relief for government donations, revised tax residency rules, and an interest waiver for outstanding tax liabilities settled by 02 December, 2026.