Inland Revenue Act 2000 · As enacted · Chapter VIII · Rates of Income Tax on Persons Other Than Companies
32. Rates of income tax on persons other than companies
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
Subject as hereinafter provided, income tax shall be charged for each year of assessment on the taxable income for that year of assessment of any person —
if he is an individual other than a receiver, trustee, executor or liquidator acting in such capacity in respect of any year of assessment at the appropriate rates specified in Part I of the First Schedule to this
Act ;
if he is an individual who is not a citizen of Sri Lanka and is deemed by subsection (7) of section 73, to be non-resident, at the rate specified in Part II of the First
Schedule to this Act; or
if such person is a person other than a company or an individual to whom paragraph (a) applies, in respect of any year of assessment at the appropriate rates specified in the Third Schedule to this Act :
Provided that the income tax payable for any year of assessment by an individual who is deemed to be non-resident under subsection (7) of section 73 shall not be more than the amount by which his assessable income for that year of assessment exceeds the allowance referred to in paragraph (a) of subsection (1) of section 30.
Where in consequence of the inclusion in the statutory income of an individual for any year of assessment of —
a sum received in commutation of a pension ; or
a sum received as a retiring gratuity other than such part of such sum as exceeds—
one million eight hundred thousand rupees; or a sum equivalent to the average monthly salary or wage paid to such individual during the period of three years immediately preceding his retirement from any employment under the employer who pays such gratuity, multiplied by the number of completed years of service whichever is greater ; or
any sum received as compensation for loss of office or employment ; or
a sum paid to him, at the time of his retirement from any employment, or at any subsequent time, from a provident fund approved by the Commissioner-General other than such part of that sum as represents his contributions to that provident fund; or
any sum paid from a regulated provident fund to an employee (other than such part of that sum as represents the contributions made by the employer to that fund prior to April 1, 1968, and the interest which accrued on such contributions made by the employer if, in respect of such contributions made by the employer and the interest which accrued on such contributions made by the employer, tax at the rate of fifteen per centum has paid by the employer); or
any sum paid to him at the time of his retirement from any employment, from the Employees’ Trust Fund, established by the Employees’ Trust Fund Act, No.
46 of 1980;
his taxable income for any year of assessment exceeds that which would be his taxable income if no such aforementioned sum were included in his statutory income, the excess, notwithstanding anything contained in any other provision of this Act, shall be chargeable with tax at the appropriate rates specified in Part III of the First Schedule to this Act, if such aforementioned sum has been paid by the employer of such individual, in accordance with a scheme which, in the opinion of the Commissioner-General, is uniformly applicable to all individuals employed by such employer. If any such aforementioned sum has been paid to such individual in accordance with a scheme which, in the opinion of the
Commissioner-General, is not uniformly applicable to all individuals employed by such employer, his taxable income
(inclusive of such excess) shall be chargeable with tax at the appropriate rates specified in Part I of the First Schedule to this Act :
Provided, however, that where the taxable income of an individual for any year of assessment includes any sum referred to in paragraph (c) which has been paid to such individual in accordance with a scheme which, in the opinion of the Commissioner-General, is not uniformly applicable to all individuals employed by the employer of that individual such sum shall be treated as a capital gain, within the meaning of this Act, and such individual shall be taxed for that year of assessment, in accordance with provisions of subsection (3).
Where the taxable income of a person includes any capital gain not being a capital gain from the change of ownership of any property and the rate of income tax payable on such part of such income (hereinafter in this subsection referred to as the “relevant part of the income”) exceeds twenty-five per centum, then, in regard to the relevant part of the income, the tax shall be computed as follows :—
if the relevant part of the income exceeds the amount of such capital gains —
the tax payable on such part of the relevant part of the income as is equal to the amount of such capital gain shall be at the rate of twenty-five per centum ; and
the tax payable on the balance of the relevant part of the income shall be computed according to such of the rates of above twenty-five per centum as are applicable thereto under this Act; and
if the relevant part of the income does not exceed the amount of the net capital gain, the tax payable on the income shall be twenty-five per centum notwithstanding anything to the contrary in this Act.
Where the taxable income of a person includes any capital gain from the change of ownership of any property, more than two years but not more than five years after the date of acquisition of such property by such person, and the rate of income tax payable on a part of such income
(hereinafter in this subsection referred to as the “relevant part of the income”) exceeds twenty-five per centum, then, in regard to the relevant part of the income, the tax shall be computed as follows :—
if the relevant part of the income exceeds the amount of such capital gain —
the tax payable on such part of the relevant part of the income as is equal to the amount of such capital gain shall be at the rate of twenty-five per centum ; and
the tax payable on the balance of the relevant part of the income shall be computed according to such of the rates above twenty-five per centum as are applicable thereto under this Act; and
if the relevant part of the income does not exceed the amount of the net capital gain the tax payable on the entirety of the relevant part of the income shall be twenty-five per centum notwithstanding anything to the contrary in this Act.
Where the taxable income of a person includes any capital gain, arising from the change of ownership of any property, within such period after the date of acquisition of that property by that person as is referred to in Column I hereto, the provisions of subsection (4) shall apply to the computation of income tax on such capital gain, as if for the reference to
“twenty-five per centum” in that subsection, there were substituted the references specified in the corresponding entry in Column II hereto.
Column I
Column II more than five years but not more than fifteen years 17 1/2 per centum more than fifteen years but not more than twenty years 12 1/2 per centum more than twenty years but less than twenty five years 5 per centum
Where the taxable income of any person includes any capital gain arising from the change of ownership of any immovable property acquired by that person by way of gift or inheritance from any other person, the date of acquisition of such property by the first-mentioned person shall, for the purposes of subsection (4) or subsection (5) of this section or of subparagraph (xvi) of paragraph (a) of subsection (1) of section 14, be deemed to be the date of acquisition of such property by the second-mentioned person.
Where any charitable institution provides in any year of assessment institutionalised care for the sick or the needy and where the Commissioner-General is satisfied that the cost of provision of such care is borne by such charitable institution, the Commissioner-General may, subject to such condition as he may specify, reduce or remit the tax payable by such charitable institution in respect of its profits and income for such year of assessment, if it appears to the Commissioner-General that such reduction or remission is just and equitable in all the circumstances of the case.
Chapter IX
Special Provisions Relating to the Taxation of Certain Profits and of Dividends Out of Such Profits
Chapter X