As enacted

Contents

Inland Revenue Act 2006 · As enacted · Chapter IX · Special Provisions Relating to the Taxation of Certain Profits and of Dividends Out of Such Profits

40. The rate of income tax on profits from employment, for a specified period of a non-citizen employed in Sri Lanka

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

Where an individual who is deemed, under subsection (7) of section 79 to be non-resident for a period of three years, continues to be employed in Sri Lanka after the expiry of such period, the profits from such employment of such individual for a period of two years commencing from the end of such period of three years shall, notwithstanding anything to the contrary in this Act, be chargeable with income tax at the rate specified in Part III of the First Schedule to this

Act.

(2)

Where an individual who is employed in a flagship company and who is deemed under the proviso to subsection (7) of section 79 to be non-resident for a period of five years, continues to be employed in such flagship company after the expiry of such period, the profits from employment in such flagship company of such individual for the period commencing from the end of such period of five years and ending on the date on which —

(a)

the exemption of the profits and income of such flagship company ceases under the terms of its agreement with the Board of Investment of Sri

Lanka ; or

(b)

a further period of five years from the end of such period of five years ends, whichever occurs earlier, shall, notwithstanding anything to the contrary in this Act, be chargeable with income tax at the rate specified in Part III of the First Schedule to this Act.

In this subsection a “flagship company” means a company which has on or after November 8, 1995 entered into an agreement with the Board of Investment of Sri Lanka under section 17 of the Board of Investment of Sri Lanka Law, No.

4 of 1978 and which has in accordance with such agreement invested in Sri Lanka within the period specified in such agreement, not less than fifty million United States Dollars or its equivalent in any other foreign currency—

(a)

in the purchase or construction of any building or in the purchase of any land, plant, machinery or furniture ; and

(b)

in the acquisition of any asset not included in paragraph (a), for the use of the enterprise carried on by such company.

Read on from s 41

Chapter X