10. Amendment of section 18 of the principal enactment

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

Section 18 of the principal enactment is hereby amended by the repeal of subsection (1) and subsection (2)

of that section, and the substitution therefor of the following subsections: -

“(1) The amount of financial costs deducted in calculating the income of a company (other than a financial institution) which is incorporated in or outside Sri Lanka and having an issued share capital as at the date on which the year of assessment ends, from conducting a business or investment for a year of assessment commencing from April l, 2021, shall not exceed the limit referred to in subsection (2).

(2)

The limit shall be computed according to the following formula: -

Where:

‘A’ = financial cost of the year;

‘B’ = value of financial instruments on which the financial cost incurred during the year; and

‘C’= 4 x total of the issued share capital and reserves of the company as at the end of the year.”.

Act, No. 10 of 2021

Read on from s 11