Inland Revenue Act 2017 · As enacted · Part I
84. Withholding from investment returns
Official English translation. The Sinhala text prevails.
Official translationFrom Department of Government Printing, unchanged
Subject to subsection (3), a person shall withhold tax at the rate provided for in paragraph 10 of the First
Schedule to this Act where –
such person –
pays a dividend, interest, discount, charge, natural resource payment, rent, royalty, premium or retirement payment or pays amounts as winnings from a lottery, reward, betting or gambling; or
being the precedent partner or in the absence of such partner in Sri Lanka, the agent of the partnership in Sri Lanka, at the time that each partner’s relevant share of any partnership income of the partnership year under subsection (9) of section 53 has been allocated; and
the payment or allocation has a source in Sri Lanka.
The National Gem and Jewellery Authority established by the National Gem and Jewellery Authority Act, No. 50 of 1993 shall withhold tax at the rate provided in paragraph 10
of the First Schedule, from the sale price of any gem sold at an auction conducted by it, from the sum payable to the seller of such gem and at the time of such sum is paid to the seller.
This section shall not apply to –
payments subject to withholding under section 83;
payments made by individuals, unless made in conducting a business;
interest paid to a financial institution on the ordinary loans and advances provided by it;
or
interest or discount paid to any person on
Security or Treasury Bond under the
Registered Stocks and Securities Ordinance
(Chapter 420) or Treasury Bill under the
Local Treasury Bills Ordinance (Chapter 417); or
payments or allocations that are exempt amounts under section 9.