Inland Revenue Act 2000 · As enacted · Chapter IX · Special Provisions Relating to the Taxation of Certain Profits and of Dividends Out of Such Profits
48. Rate of income tax on dividends out of exports profits and income
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
Where the taxable income of any person (other than a company) for any year of assessment includes any dividend—
being a dividend out of the—
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
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
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
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 and income out of which the dividends referred to in subparagraph (i) or subparagraph (ii) of paragraph (a) are paid are txable 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, and the rate of income tax payable on a part of such income
(hereinafter in this section referred to as the “relevant part of income”) exceeds fifteen 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 dividend—
the tax payable on such part of the relevant part of the income as is equal to the amount of such dividend shall be at the rate of fifteen per centum ; and
the tax payable on the balance of relevant part of the income shall be computed according to such of the rates of above fifteen per centum as are applicable thereto under this Act ; and
if the relevant part of the income does not exceed the amount of such dividends, the 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 this Act.
Where the taxable income of any person (other than a company) for any year of assessment includes any dividend—
being a dividend out of the qualified export profits and income of a company—
referred to in section 45 or section 47 or the profits and income referred to in section 49 or section 50 paid during the period in which such profits and income are taxable at the rate of fifteen per centum or within one year thereafter;
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.
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
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, and the rate of income tax payable on a part of such income
(hereinafter in this section referred to as the “relevant part of income”) exceeds fifteen 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 dividend :—
the tax payable on such part of the relevant part of the income as is equal to the amount of such dividend shall be at the rate of fifteen per centum ; and
the tax payable on the balance of relevant part of the income shall be computed according to such of the rates of above fifteen per centum as are applicable thereto under this Act ; and
if the relevant part of the income does not exceed the amount of the such dividend, the 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 this Act.
Subject to the provisions of section 58 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.
Chapter X