A valid Taxpayer Identification Number (TIN) is now required for several important personal and business transactions.
From October 1, the Inland Revenue Department (IRD) says people must provide a valid TIN when carrying out specified transactions, including opening bank accounts, registering vehicles and registering land.
However, having a TIN does not mean everyone has to pay income tax. The IRD has clarified that income tax applies only when a person’s annual income exceeds Rs. 1.8 million.
Which Transactions Need a TIN?
A valid TIN must be presented when opening an account with a bank or financial institution. It is also required for building plan approvals, motor vehicle registration and motor vehicle licence renewals.
Property-related transactions are covered too. A TIN must be provided when registering land or land ownership.
People registering a business must also provide a valid TIN. The requirement extends to transferring shares of a company incorporated in Sri Lanka and obtaining a credit card.
For each of these transactions, the relevant officer must verify that the TIN is valid before completing the process.
That means people who plan to carry out one of these transactions should check their TIN status in advance.
What Happens If You Do Not Have a TIN?
Anyone who has not yet obtained a TIN can register through the IRD’s e-Services portal. People who already have a TIN can use the same online services to check whether it is valid.
Once verification is completed successfully, the TIN will appear on the screen.
A printed copy showing both the person’s National Identity Card (NIC) number and TIN can then be used instead of an official TIN certificate for the specified transactions.
As a result, people do not necessarily need to wait for a separate physical TIN certificate before completing these transactions.
Does Having a TIN Mean You Have to Pay Tax?
This is the key point behind the IRD’s latest clarification.
A TIN is an identification number. It does not automatically create an income-tax payment obligation. The IRD has rejected reports suggesting that everyone must pay income tax simply because they have obtained a TIN.
According to the Department, individuals become liable for income tax when their annual income exceeds Rs. 1.8 million.
Therefore, obtaining a TIN and becoming liable to pay income tax are two different matters. Nearly 13 million citizens above the age of 18 have obtained a TIN so far, according to sources at the Inland Revenue Department.
For anyone planning to open a bank account, register a vehicle, renew a licence, register property or carry out another listed transaction, checking the TIN requirement before starting the process can help avoid delays.
Last modified: October 31, 2026
