Inland Revenue Act 2000 · As enacted · Chapter III · Exemption from Income Tax
11. Exemption from income tax of certain dividends
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
There shall be exempt from income tax—
any dividend paid by a company with which an agreement has been entered into by 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 which has been entered into prior to December 31, 1994, on an application made in that behalf prior to November 11, 1993—
to any person, during the period for which the profits and income of that company are exempt from income tax under the terms of that agreement or within one year thereafter, out of the profits and income of the company which are exempt from income tax ;
to any person, who is not resident in Sri Lanka notwithstanding anything to the contrary in subsection (1) of section 48 ;
any dividend paid by a flagship company with which an agreement has been entered into by the Board of
Investment of Sri Lanka to any shareholder during the period for which the profits and income of that company are exempt from income tax under the terms of that agreement or within one year thereafter out of the profits and income of such company which are exempt from income tax ;
In this paragraph, “flagship company” means 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 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 State of America Dollars or its equivalent in any other foreign currency—
in the purchase or construction of any building or in the purchase of any land, plant, machinery or furniture ; and
in the acquisition of any asset not included in paragraph (i), for the use of the undertaking carried on by that company ;
any dividend paid by a company with which an agreement has been entered into on or after
November 8, 1995 by the Board of Investment of
Sri Lanka under section 17 of the Board of
Investment of Sri Lanka Law, No. 4 of 1978 to any shareholder of that company during the period for which the profits and income of that company are exempt from income tax under the terms of that agreement or within one year thereafter out of the profits and income which are exempt from income tax ;
any dividend out of the profits of any company with which an agreement has been entered into by the
Board of Investment of Sri Lanka under section 17
of the Board of Investment of Sri Lanka Law, No. 4
of 1978 from the operation by such company of a hospital with facilities for paying and non-paying patients for indoor and outdoor treatment, paid to any share holder of such company during the period of five years reckoned from the commencement of the year of assessment in which such hospital commences operations ;
any dividend out of the profits within the meaning of paragraph (a) of section 3 of a company—
with which an agreement has been entered into by the Board of Investment of Sri Lanka, under section 17 of the Board of Investment of Sri
Lanka Law, No. 4 of1978, and
to which a mining license issued under the
Mines and Mineral Act, No. 33 of 1992, has been assigned paid to any shareholder of such company during the period for which the profits and income of that company are chargeable with income tax at such rate as is determined in accordance with sub-paragraph (a) of the further proviso to paragraph (iv) of regulation 2 of Regulations No. 1 of 1995 made under section 24 of the Board of Investment of Sri
Lanka Law, No. 4 of 1978, as last amended by
Regulation published in Gazette No. 1019/13 of
March 19, 1998 and specified in such agreement or within one year thereafter ;
any dividend paid to a shareholder of a company out of such profits and income of that company arising on or after April 1, 1977, which are exempt from income tax under section 15, 17, 18, 19, or 20
of this Act or section 8(a) (xxxviii), 15, 16A, 16B,
16C, 16D, 17A, 17C, 17D, 17J, 17JJ, 17K, 17KK, 17L,
17M, 18, 19, 20, 20A, 20B, 20C, 21, 22, 22A, 22B,
22C, 22D, 22DDD or 22DDDD of the Inland Revenue
Act, No. 28 of 1979 or under the Inland Revenue
Act, No.4 of 1963, if such dividend is paid during the period for which such profits and income of that company are exempt from income tax under any of those provisions or within one year thereafter ;
any dividend paid to a shareholder of a company, out of any such dividend received by that company as is referred to in paragraph (a) or (f), 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 ;
any dividend paid to a shareholder of a company out of any such dividend as is referred to in paragraph (a) or (f), received by that company through one or more intermediary companies during the period for which the dividends referred to in paragraph (a) or paragraph (f) are exempt from income tax 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 or within one year thereafter.
Chapter IV
Ascertainment of Profits or Income
Chapter V
Ascertainment of Total Statutory Income
Chapter VI
Chapter VII
Ascertainment of Taxable Income
Chapter VIII
Rates of Income Tax on Persons Other Than Companies
Chapter IX
Special Provisions Relating to the Taxation of Certain Profits and of Dividends Out of Such Profits
Chapter X