What is a Direction on Gratuity Payment?
A direction on gratuity payment is an official authorization issued by the Inland Revenue Department (IRD) that allows your employer to release the gratuity payment after deducting the applicable taxes. This is essential to ensure compliance with Sri Lankan tax regulations.
Required Documents for Processing Gratuity Payment
To obtain the IRD direction, you need to submit the following documents:
- Duly completed Application Form (attached)
- Authorization Letter including Name, Address, TIN
- T10 Certificates for the last three years
- Current year T10 Certificate (2025/26)
- Certified salary slips (April 2025 to resignation effective date)
- Service Letter issued by the company addressed to "The Commissioner General of Inland Revenue" containing:
- Employee Name and Address
- NIC Number
- Service Period
- Gratuity details (Gratuity Amount and Retained Amount)
- Certified ETF (3%) statement from ETF branch of Dept. of Labour
- Taxpayer Identification Number (TIN)
- Copy of National Identity Card (NIC)
If you need assistance preparing these documents, our team is ready to guide you through the process.
Frequently Asked Questions
The IRD typically processes direction letters within 2-3 weeks, provided all documentation is complete and accurate.
No. The employer is required by law to withhold gratuity payments until a valid direction letter is issued by the IRD.
The IRD will return incomplete submissions and the process may be delayed. Our service ensures completeness to avoid delays.