23. Amendment of section 53 of the principal enactment

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

Section 53 of the principal enactment as last amended by Act, No. 37 of 2003, is hereby further amended as follows :—

(1)

in subsection (1) of that section —

(a)

by the substitution for paragraph (b) and paragraph (bb) of that subsection, of the following paragraphs :—

“(b)

equal to fifteen per centum of the aggregate amount of the gross dividend distributed by such company, not being a quoted public company, in that year of assessment being a year of assessment commencing prior to April 1, 2002, out of the profits on which the taxable income of such compay is computed for any year of assessment other than any such dividend distributed to a person referred to in paragraph (a)

and paragraph (b) of section 8;

Inland Revenue (Amendment)

(bb)

equal to ten per centum of the aggregate amount of the gross dividend distributed by such company, not being unit trust or mutual fund approved by the

Seurities and

Exchange

Commission of Sri Lanka, in that year of assessment, being a year of assessment commencing on or after

April 1, 2002 out of the profits on which the taxable income of such company is computed for any year of assessment, other than any such dividends distributed to —

(i)

any company or other body of persons who or which is exempt from income tax under paragraph (a) or paragraph (b) of section 8 ;

(ii)

any unit trust or mutual fund approved by the Securities and

Exchange Commission of Sri

Lanka :

Provided however, income tax equal to ten per centum shall be payable on any dividend declared, not being a dividend declared to any person referred to in sub-paragraphs (i) or (ii) on the amount of gross dividend declared by such company on or after April 1, 2004, out of profits and income of such company, whether such profits and income are chargeable with income tax or not chargeable with income tax, excluding any dividend received from another company after deduction of income tax

Inland Revenue (Amendment)

under this subsection on any dividend which is exempt under section 11 to the recipient of such dividend;”;

(b)

by the substitution in paragraph (e) of that subsection for the words “under paragraph (1)”, of the words “under paragraph (a) of subsetion (1)”; and

(2)

by the repeal of subsection (3) of that section, and the substitution therefor of the following subsection—

“(3) The “amount of gross dividend” in relation to any dividend received from another company, shall be such amount of the dividend received.”.

Read on from s 24