13. Insertion of new section 21A 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 21 of the principal enactment and shall have effect as section 21A of that enactment :—

21A. (1) 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, from any relocated undertaking referred to in subsection (2), shall be exempt from income tax for each year of assessment within a period of five years, commencing on April 1, 2009.

(2)

For the purpose of subsection (1), a

“relocated undertaking” in relation to any company and to any year of assessment referred to in subsection (1), means an undertaking—

(a)

which prior to November 1, 2007, was being carried on by that company in any location within the

“Exemption of profits and income of undertakings relocated from certain districts.

Act, No. 9 of 2008

administrative district of Colombo or

Gampaha, with not less than one hundred individuals employed therein ;

(b)

which is relocated in any location outside the administrative district of Colombo and Gampaha and commencing from a date not later than March 31, 2009, continues to—

(i)

carry on commercial operations;

and

(ii)

employ such number of individuals as is not less than the number employed as at

November 1, 2007, throughout that year of assessment ;

(c)

in respect of which the expenditure incurred in the relocation is not less than one hundred million rupees ;

and

(d)

of which 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) are exempt from income tax under any other provision of this Act or under any agreement entered into with the

Board of Investment of Sri Lanka under section 17 of the Board of

Investment of Sri Lanka Law, No. 4

of 1978, for a period extending beyond April 1, 2009.”.

Act, No. 9 of 2008

Read on from s 14