As enacted

Contents

51. Amendment of the Second Schedule to the principal enactment

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

The Second Schedule to the principal enactment as last amended by the Act. No. 19 of 2009, is hereby further amended as follows :-

(1)

in PART - A of that Schedule by the substitution for item 1 of that Part, of the following item :-

“1. Any venture capital company -

(a)

For any year of assessment commencing on or after

April 1, 2006, but prior to

April 1, 2011– on the taxable income 20 per centum;

(b)

For any year of assessment commencing on or after

April 1, 2011 - on the taxable income

(2)

by the substitution for PART - B of that Schedule of the following new PART :-

“PART - B

(a)

For the year of assessment commencing on

April 1, 2006 —

Any company other than a company referred to in PART -

A and of which the taxable income does not exceed Rs.

5,000,000

(b)

For any year of assessment commencing on or after April 1,2007, but prior to April 1, 2011 -

Any company —

(A)

(i) of which the taxable income does not exceed

Rs. 5,000,000/-;

(ii)

which is not a company referred to in PART-A;

and

(B)

Which is not the holding company, a subsidiary company, or an associate company of a group of companies on the taxable income

(c)

For any year of assessment commencing on or after April 1, 2011 -

Any company —

12 per centum.”

15 per centum;

(A)

(i) of which the taxable income does not exceed

Rs. 5,000,000/-;

(ii)

which is not a company referred to in PART-A;

and

(B)

Which is not the holding company, a subsidiary company, or an associate company of a group of companies on the taxable income

For the purpose of item (B) of paragraph (b)

and paragraph (c), the expressions “holding company”, “subsidiary company”, and,

“group of companies” shall have the same respective meanings which they have in the Companies Act, No. 7 of 2007.

2. Any company for the year of assessment being any year of assessment commencing prior to

April 1, 2011 in which its shares are first quoted in any official list published by a stock exchange licensed by the Securities and Exchange

Commission of Sri Lanka (hereinafter referred to as the “first year of assessment”) and for each year of assessment within the period of four years immediately succeeding that first year of assessment,

(a)

for which the taxable income exceeds Rs.

5,000,000/-; or

(b)

if such company is a holding company, a subsidiary company or an associated company of a group of companies on the taxable income for that year of assessment 12 per centum;

33 1/3 per centum;

Provided that where such first year of assessment is any year of assessment which commences prior to April 1, 2006, the rate of 33 1/3 per centum shall apply in relation to any year of assessment which falls within such period of four years, but which commences on or after April 1, 2006.

3. Any company other than any company hereinbefore referred to in this Schedule, on the taxable income-

(a)

for any year of assessment commencing prior to

April 1, 2011

(b)

for any year of assessment commencing after

April 1, 2011

4. Where the taxable income of any company for any year of assessment exceeds five million rupees, then such part of the tax computed in accordance with this Act, as being payable by such company for such year of assessment as is attributable to such excess, shall not be more than such excess.”.

Read on from s 52