11. Amendment of section 79 of the principal enactment

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

Section 79 of the principal enactment is hereby amended as follows: -

(1)

by the renumbering of that section, as subsection (1) of that section;

(2)

in the renumbered subsection (1) of that section, by the substitution for the words “for an amount incurred”, of the words and figures “for an amount incurred in any year of assessment prior to April 1, 2025,”; and

(3)

by the addition immediately after the renumbered subsection (1) of that section, of the following new subsections: -

“(2) Where a non-resident person who carries on business through a Sri

Lankan permanent establishment incurs any expenditure in any year of assessment commencing on and after April 1, 2025 in the nature of head office expenditure, a sum equal to –

(a)

the amount of such expenditure;

(b)

the amount equal to ten per centum of such person’s assessable income from such business, whichever is lesser, shall be deducted for such year of assessment.

(3)

For the purpose of this section,

“head office expenditure” in relation to a non-resident person and for any year of assessment means, the executive and general administration expenditure incurred by or on behalf of such person outside Sri Lanka, including the expenditure –

(a)

which comprises the aggregate of the total income from employment of, and the total cost of travelling undertaken by every employee and every other person employed in, or managing the affairs of any office of such company outside

Sri Lanka; and

(b)

which is incurred in respect of any premises outside Sri

Lanka.”.

Read on from s 12