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srilawsby aturio
As enacted
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Chapter IX · Special Provisions Relating to the Taxation of Certain Profits and of Dividends Out of Such Profits

41. Rate of income tax on dividends paid out of profits taxed in accordance with section 40

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

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

(a)

out of profits and income referred to in section 40 ; or

(b)

paid out of any such dividend as is referred to in paragraph (a) received by any company directly from a company referred to in section 40 or through one or more intermediary companies, if the first mentioned dividend is paid during the year of assessment in which the profits and income referred to in section 40 arose or accrued or within two years from the end of that year of assessment and the rate of income tax payable on a part of such income

(hereinafter in this section referred to as the relevant part of the income) exceeds fifteen per centum, then in regard to the relevant part of the income, tax shall be computed as follows :—

(i)

if the relevant part of the income exceeds the amount of such dividends—

(a)

the tax payable on such part of the relevant part of the income as is equal to the amount of such dividends, shall be at the rate of fifteen per centum ; and

(b)

the tax payable on the balance of the relevant part of the income shall be computed according to such of the rates of the tax above fifteen per centum as are applicable thereto under this Act ;

(ii)

if the relevant part of the income does not exceed the amount of such dividends, tax payable on the entirety of the relevant part of the income shall be at the rate of fifteen per centum, notwithstanding anything to the contrary in the other provisions of this Chapter or of Chapter

VIII.

(2)

Where the taxable income of any company includes any dividend referred to in subsection (1), the rate of income tax applicable to such part of such taxable income as consists of such dividend shall, subject to the provisions of section 58

be fifteen per centum.

Read on from s 42

Chapter X

Companies

Read on from Chapter X