As enacted

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

53. Rate of income tax on dividends out of exports profits and income

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

(1)

Where the taxable income of any person other than a company, for any year of assessment includes any dividend-

(a)

being a dividend out of–

(i)

export profits and income of any company referred to in section 32F of the Inland Revenue

Act, No. 28 of 1979, paid during the period in which such profits and income are taxable at the rate of ten per centum, or within one year thereafter; or

(ii)

profits and income of any company which has 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, being profits and income in respect of which such company has, in lieu of the exemption granted to it under such agreement, opted to be charged with income tax at the rate of ten per centum, paid during the period for which such profits are so chargeable with income tax or within one year thereafter; or

(b)

being a dividend paid by any company out of such dividend received by that company as is referred to in sub-paragraph (i) or sub-paragraph (ii) of paragraph (a), if the first mentioned dividend is paid during any year of assessment in which the second mentioned dividend was received by that company, or within one year thereafter; or

(c)

being dividend out of any such dividend as is referred to in sub-paragraph (i) or sub-paragraph (ii)

of paragraph (a) received by any company through one or more intermediary companies, during the period for which the profits income out of which the dividends referred to in sub-paragraph (i) or sub-paragraph (ii) of paragraph (a) are paid are taxable at the rate of ten per centum or within two years thereafter, if the first-mentioned dividend is paid during the year of assessment in which the second mentioned dividend was received by that company or within one year thereafter, such part of such taxable income as consists of such dividend, shall be chargeable with tax at the appropriate rate specified in the Fifth Schedule to this Act.

(2)

Where the taxable income of any person other than a company for any year of assessment includes any dividend—

(a)

being a dividend out of the qualified export profits and income of a company—

(i)

referred to in section 51 or section 52 or the profits and income referred to in section 56

paid during the period in which such profits and income are taxable at the rate of fifteen per centum or within one year thereafter,

(ii)

which has 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, being an agreement entered into prior to December 31, 1994, on an application made in that behalf prior to

November 11, 1993, being profits and income in respect of which such company has paid income tax at the rate of fifteen per centum paid during the period in which such profits and income are chargeable with income tax at the rate of fifteen per centum or within one year thereafter ;

(b)

being a dividend paid by any company out of such dividend received by that company as is referred to in subparagraph (i) or subparagraph (ii) of paragraph (a), if the first-mentioned dividend is paid during any year of assessment in which the second mentioned dividend was received by that company or within one year thereafter; or

(c)

being a dividend out of any such dividend as is referred to in sub-paragraph (i) or sub-paragraph (ii)

of paragraph (a), received by any company during the period for which the profits and income out of which such dividends are paid are taxable at the rate of fifteen per centum or within two years thereafter, if the first mentioned dividend is paid during the year of assessment in which the second mentioned dividend was received by that company or within one year thereafter, such part of such taxable income as consists of such dividend, shall be chargeable with tax at the appropriate rate specified in the Fifth Schedule to this Act.

(3)

Subject to the provisions of section 63, where the taxable income of any company includes any dividend referred to in subsection (1) or subsection (2), the rate of income tax applicable to such part of such taxable income as consists of such dividend, shall be fifteen per centum.

Read on from s 54

Chapter X