As enacted

Contents

33. Amendment of the First 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 First Schedule to the principal enactment is hereby amended as follows: -

(1)

in paragraph 1 of that Schedule –

(a)

in subparagraph (1A) of that paragraph, by the substitution for the word and figures

“January 1, 2020”, of the words and figures

“January 1, 2020, but prior to April 1, 2022”;

(b)

by the insertion immediately after subparagraph (1A) of that paragraph, of the following new subparagraphs: -

“(1B) Subject to the provisions of subparagraph (2), the taxable income of a resident or non-resident individual for the year of assessment commencing from April 1, 2022 shall be taxed at the following rates: -

(a)

Taxable income for the first nine months period of the year of assessment commencing from April 1, 2022:-

(b)

Taxable income for the second three months period of the year of assessment commencing from April 1, 2022:-

Not exceeding

Rs. 2,250,000

Exceeding

Rs. 2,250,000

but not exceeding

Rs. 4,500,000

Exceeding

Rs. 4,500,000 6% of the amount in excess of Rs.

Rs. 135,000 plus 12% of the amount in excess of

Rs. 2,250,000

Rs. 405,000 plus 18% of the amount in excess of

Rs. 4,500,000;

Tax payable

Taxable Income

Exceeding

Rs. 500,000 but not exceeding

Rs. 625,000 6% of the amount in excess of Rs.0

Taxable Income

Tax payable

Exceeding

Rs. 250,000 but not exceeding

Rs. 375,000

Exceeding

Rs. 125,000 but not exceeding

Rs. 250,000

Not exceeding

Rs. 125,000

Rs. 22,500 plus 18% of the amount in excess of

Rs. 250,000

Rs. 45,000 plus 24% of the amount in excess of

Rs. 375,000

Rs. 7,500 plus 12% of the amount in excess of

Rs. 125,000

Exceeding

Rs. 375,000 but not exceeding

Rs. 500,000

Exceeding

Rs. 625,000

Rs. 75,000 plus 30% of the amount in excess of

Rs. 500,000

Rs. 112,500 plus 36%

of the amount in excess of Rs. 625,000;

(1C)

Subject to the provisions of subparagraph (2), the taxable income of a resident or non-resident individual for a year of assessment commencing from April 1, 2023 shall be taxed at the following rates: -

Taxable Income

Tax payable 6% of the amount in excess of Rs.0

Not exceeding

Rs. 500,000

Exceeding Rs. 500,000

but not exceeding

Rs. 1,000,000

Rs. 30,000 plus 12% of the amount in excess of

Rs. 500,000

Exceeding

Rs. 1,500,000 but not exceeding

Rs. 2,000,000

Rs. 90,000 plus 18% of the amount in excess of

Rs. 1,000,000

Rs. 450,000 plus 36%

of the amount in excess of Rs. 2,500,000";

Exceeding

Rs. 1,000,000 but not exceeding

Rs. 1,500,000

Rs. 180,000 plus 24%

of the amount in excess of Rs.

1,500,000

Exceeding

Rs. 2,000,000 but not exceeding

Rs. 2,500,000

Rs. 300,000 plus 30%

of the amount in excess of Rs. 2,000,000

Exceeding

Rs. 2,500,000

(c)

in subparagraph (5) of that paragraph, by the substitution for the word and figures “April 1, 2021: -”, of the words and figures “April 1,

2021, but prior to January 1, 2023: -”;

(2)

in paragraph 3 of that Schedule, by the repeal of subparagraph (1) of that paragraph and the substitution therefor, of the following subparagraph: -

“(1) Subject to the provisions of subparagraph (2), the taxable income of a trust for a year of assessment to which subsection (1) of section 57 applies shall be taxed at the rate of –

(a)

24% prior to January 1, 2020;

(b)

18% with effect from January 1, 2020, but prior to April 1, 2022;

(c)

18% for the first six months of the year of assessment commencing on April 1, 2022 and for the second six months of the same year of assessment at the rate of 30%; and

(d)

30% with effect from April 1, 2023.”;

(3)

in paragraph 4 of that Schedule-

(a)

in subparagraph (1) of that paragraph-

(i)

by the repeal of item (b) of that subparagraph, and the substitution therefor of the following item: -

“(b) with effect from January 1, 2020, but prior to April 1, 2022, shall be taxed at the rate of 24%.”;

(ii)

by the addition immediately after item (b)

of that subparagraph, of the following new items: -

“(c) shall be taxed at the rate of 24% for first six months of the year of assessment commencing on April 1,

2022 and for second six months of the same year of assessment at the rate of 30%; and

(d)

with effect from April 1, 2023 shall be taxed at the rate of 30%.”;

(b)

in subparagraph (2A) of that paragraph, by the substitution for the word and figures

“January 1, 2020: -”, of the words and figures

“January 1, 2020 but prior to April 1, 2022

and for the first six months of the year of assessment commencing on April 1,

2022: -”;

(c)

by the addition immediately after subparagraph (2A) of that paragraph, of the following new subparagraph: -

“(2B) Such part of the following gains and profits of a company which includes in its taxable income for the six months period commencing on October 1, 2022 in the year of assessment commencing on

April 1, 2022 and for any year of assessment commencing on or after April 1, 2023, the gains and profits of a company shall be taxed at the following rates: -

(a)

gains and profits from conducting betting and gaming-40%; and

(b)

gains and profits from the manufacture and sale or import and sale of any liquor or tobacco product-

40%.”;

(d)

in item (a) of subparagraph (4) of that paragraph, by the substitution for the words and figures “rate of 10%; and” of the words and figures “rate of 10% prior to October 1,

2022 and 30% with effect from October 1,

2022; and”;

(e)

in subparagraph (5) of that paragraph, -

(i)

by the substitution for the word and figures

“subparagraphs (1), (2A),” of the word and figures “subparagraphs (1), (2A), (2B),”;

(ii)

in item (b) of that subparagraph, by the substitution for the words “for the two years of assessment immediately succeeding that year of assessment,”, of the words and figures “for the first six months of the year of assessment commencing from April 1, 2022”; and

(iii)

by the repeal of item (ii) of sub-paragraph (b) of that subparagraph and the substitution therefore of the following: -

“(ii) an increase in exports (other than specified undertakings) by fifty per centum in the first six months of the year of assessment commencing from

April 1, 2022, compared to the first six months of the first year.”;

(4)

in subparagraph (1) of paragraph 5 of that Schedule, by the substitution for the words and figures “shall be taxed at the rate of 28% prior to January 1, 2020

and 24% with effect from January 1, 2020.”, of the following: -

“shall be taxed at the rate of –

(a)

28% prior to January 1, 2020;

(b)

24% with effect from January 1, 2020, but prior to April 1, 2022;

(c)

24% for the first six months of the year of assessment commencing on April 1,

2022 and for the second six months of the same year of assessment at the rate of 30%; and

(d)

30% with effect from April 1, 2023.”;

(5)

in paragraph 7 of that Schedule-

(a)

by the repeal of subparagraph (1) of that paragraph and the substitution therefor, of the following subparagraph: -

“(1) Subject to subparagraph (2), the taxable income of a non-governmental organization for a year of assessment shall be taxed at the rate of –

(a)

28% prior to January 1, 2020;

(b)

24% with effect from January 1,

2020, but prior to April 1, 2022;

(c)

24% for the first six months of the year of assessment commencing on April 1, 2022 and for the second six months of the same year of assessment at the rate of 30%; and

(d)

30% with effect from April 1,

2023.”;

(b)

by the repeal of subparagraph (3) of that paragraph and the substitution therefor, of the following subparagraph: -

“(3) The rate of tax payable by a non-governmental organization on amounts received in a year of assessment by way of grant, donation or contribution or in any other manner under section 68 shall-

(a)

prior to January 1, 2020, be 28%;

(b)

be 24% with effect from January 1, 2020, but prior to April 1, 2022;

(c)

be 24% for the first six months of the year of assessment commencing on April 1, 2022 and for the second six months of the same year of assessment, be 30%;

and

(d)

be 30% with effect from April 1,

2023.”; and

(6)

in subparagraph (1) of paragraph 10 of that Schedule -

(a)

in item (a) of that subparagraph, by the substitution for the words and figures

“section 83 applies-”, of the words and figures “section 83 or section 83A applies-”;

(b)

in item (b) of that subparagraph, by the substitution for the words and figures

“section 84(1)(a)(i) applies-”, of the words and figures “section 84(1)(a) applies-”; and

(c)

by the addition immediately after item (c)

of that subparagraph, of the following new item:-

“(d) for payments to which section 84A (1A) applies –

(i)

rent payments made to a resident person where the aggregate payment does not exceed Rs. 100,000 per month – 0%;

(ii)

interest or discount paid –

5%;

(iii)

rent payments made to a resident person where the aggregate payment exceeds or is equal to Rs. 100,000 per month – 10% on full amount;

(iv)

all other payments except dividend – 14%; and

(v)

dividend paid-15%.”; and

(7)

in paragraph 11 of that Schedule, by the substitution for the words “five years”, of the words

“two years”.

Read on from s 34