27. Insertion of new section 96A in the principal enactment

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

The following new section is hereby inserted immediately after section 96 of the principal enactment, and shall have effect as section 96A of that enactment :—

96A. (1) Where any Non - Governmental

Organization as defined in subsection (2) of this section, receives in any year of assessment, commencing on or after April 1, 2005 any money by way of grants, donations, contributions or by any other means, an amount equal to three per centum of such money, shall notwithstanding anything to the contrary in any other provison of this Act, be deemed to be the full profits and income of such year of assessment, and such profits and income of such non-governmental organization shall be deemed to arise in Sri Lanka.

(2)

For the purposes of subsection (1) a

“Non Government Organization” means any organization or association formed by a group of perons on a voluntary basis which is non -

governmental in nature dependant on grants, donations, contributions or money received from any other means locally or from any foreign country or any foreign or local

“Profits and income of

Non-Governmental

Organization to be chargeable with income tax.

organization and established or constituted for the provision of relief and services of a humanitarian nature to the poor and destitute, to the sick, orphans and widows, youth and children and generally for providing relief to the needy in times of disaster, which is determined by the Commissioner-General to be a Non-Governmental Organization for the purpose of this section.

(3)

The profits and income of a Non

Govermental Organization, shall be chargeable with income tax at the appropriate rate as specified in the Sixth Schedule to this Act :

Provided that, where the Commissioner -

General is satisfied that any Non Governmental

Organization is engaged solely in—

(a)

rehabilitation and the provision of infrastructure facilities and livelihood support to displaced persons in any area identified by the Government for such purposes ; or

(b)

any other activity approved by the

Minister as being of humanitarian in nature, taking into consideration the nature and gravity of any disaster and the magnitude of relief consequently required to be provided ,”.

the Commissioner - General may remit the tax payable by such Non - Governmental

Organization for that year of assessment.”.

Read on from s 28