Tax guide
Withholding tax guide for fixed deposits
How to think about gross interest, net interest, and a 5% withholding tax planning view for Sri Lankan fixed deposits.
Questions this guide answers
What is the difference between gross and net FD interest?
How can I estimate a 5% withholding tax deduction?
Should tax change my FD comparison?
Quick steps
- 1Calculate the gross interest first.
- 2Apply the 5% tax view to the interest portion if relevant.
- 3Compare the net estimate against other options.
- 4Confirm current tax treatment with the bank or adviser.
Gross and net returns answer different questions
Gross interest helps compare bank product rates. Net interest helps estimate the cash value after a tax-style deduction.
A saver should understand both views before choosing between similar FD offers.
Use the tax view as an estimate
Tax rules, declarations, and personal circumstances can change the final result.
RateHive's 5% toggle is for planning and comparison, not personal tax advice.
Frequently asked questions
Does RateHive support a withholding tax view?
Yes. The FD calculator can show a 5% withholding tax view by reducing the estimated interest portion.
Should I confirm tax with my bank?
Yes. Always confirm current tax rules and bank processing before opening or renewing a deposit.