21. Insertion of new sections 59D and 59E in the principal enactment

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

The following new sections are hereby inserted immediately after section 59C of the principal enactment and shall have effect as sections 59D and 59E respectively, of that enactment:-

59D. (1) The tax rate applicable on the profits and income within the meaning of paragraph (a) of section 3 (other than any profits and income from the sale of any capital asset), of any company which lists its shares on or after April 1, 2013 but prior to April 1, 2014, in the Colombo Stock Exchange licensed by the

Securities and Exchange Commission of Sri

Lanka and issues by way of Initial Public

Offering not less than twenty per centum of its shares to the general public, shall be reduced by fifty per centum for the year of assessment in which such shares are listed and for another two years of assessment immediately succeeding that year of assessment subject where such company after listing continues to maintain not less than twenty per centum of holding of its shares by the general public.

(2)

Where the company referred to in subsection (1) fails to maintain in any subsequent year of assessment after listing its shares, not less than twenty per centum of

“Rate of income tax applicable to companies listing its shares in the

Colombo

Stock

Exchange and issuing its shares to the general public.

holding of shares by the general public in the opinion of an Assessor, the tax reduced under subsection (1) shall notwithstanding to the contrary in any other provisions of this Act, be re-assessable, payable and recoverable.

For the purposes of this section “shares held by the general public” in relation to a listed company means shares of such company held by any person other than those directly or indirectly held by :-

(a)

its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company;

(b)

its directors who are holding office as directors of such company, their spouses and children under 18 years of age;

(c)

its Chief Executive Officer, his spouse and children under 18 years of age; and

(d)

any single shareholder who holds ten per centum or more of the shares of such company.

59E.

from

Such part of the profits and income of any person or partnership from operating any project for producing any alternative energy including operating any mini hydro power project shall notwithstanding anything to the contrary in any other provisions of this Act, be taxable at the appropriate rate specified in the

Fifth Schedule to this Act.

any

For the purposes of this section “mini hydro power project” means any hydro power project which generates less than ten Mega Watts electricity.”.

Rate of income tax on the profits and income operating alternative power generation project.

Read on from s 22