15. Amendment of section 26 of the principal enactment

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

Section 26 of the principal enactment as last amended by Act, No. 9 of 2008, is hereby further amended in subsection (1) as follows:-

(1)

by the substitution in sub-paragraph (ii) of paragraph (c) of that subsection, for the words "in foreign currency;", of the following words and figures :-

“in foreign currency:

Provided that for any year of assessment commencing on or after April 1, 2011 -

(A)

such part of expenditure incurred in travelling outside Sri Lanka in the production of profits or income from any trade or business carried on or exercised in Sri Lanka by any person, other than-

(i)

such expenses incurred solely in connection with the promotion of export trade of any article or goods or the provision of any services for payment in foreign currency ; or

(ii)

such expenditure incurred in carrying out an approved programme as referred to in paragraph (d); or

(B)

an amount equal to two per centum of the profits and income of such trade or business in the immediately preceding year of assessment;”;

whichever is lower, shall be deductible in ascertaining the profits and income from such trade or business for that year of assessment;”;

(2)

by the substitution in sub-paragraph (i) of paragraph (r) of that subsection for the words “one million rupees or”, of the words “two million rupees or”;

(3)

by the substitution in paragraph (v) of that subsection, for the words “one half of such person’s cost of advertisement”, of the following words and figures:-

“for any year of assessment-

(i)

commencing prior the April 1, 2011, one half;

and

(ii)

commencing on or after April 1, 2011, one fourth, of such person’s cost of advertisement”;

(4)

by the substitution in paragraph (y) of that subsection, for the words “debt instrument.”, of the words “debt instruments;”; and

(5)

by the addition immediately after paragraph (y) of that subsection, of the following new paragraph:-

“(z) the income tax paid by any employer in respect of the employment income of any individual employed by such employer.”.

Read on from s 16