17. Insertion of new sections 24C and 24D 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 sections are hereby inserted immediately after section 24B of the principal enactment and shall have effect as section 24C and section 24D of that enactment :—

24c. (1) The profits and income within the meaning of paragraph (a) of section 3 (other than any profits and income from the disposal of any capital asset) from the operation of any new undertaking referred to in subsection (2), shall be exempt from income tax for a period of five years commencing from the year of assessment in which such undertaking commences to make profits from transactions entered into in that year of assessment or from the commencement of the year of assessment immediately succeeding the year of assessment in which such undertaking complets two years reckoned from the date on which the undertaking commences to carry on commercial operations, whichever occurs earlier.

(2)

For the purpose of subsection (1),

“new undertaking” means an undertaking which—

(a)

is not formed by the splitting up, reconstruction or the acquisition of an undertaking which was in existence before November 7, 2007 ;

(b)

commences commercial operations on or after November 7, 2007 ; and

(c)

is located within the Eastern Province, and the sum invested in the undertaking before

April 1, 2010 (other than in land), is not less than thirty million rupees.

“Exemption from income tax of the profits and income of any new undertakings located within the

Eastern

Province.

Act, No. 9 of 2008

24D.

Exemption of the profits and income of any new undertaking located in any lagging region

(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 new undertaking

(other than any specified undertaking) located in any lagging region and referred to in subsection (2), shall be exempt from income tax for a period of five years commencing from the year of assessment in which such undertaking commences to make profits from transactions entered into in that year of assessment or from the commencement of the year of assessment immediately succeeding the year of assessment in which the undertaking completes two years reckoned from the date on which the undertaking commences to carry on commercial operations, whichever occurs earlier.

(2)

For the purpose of subsection (1) :—

“lagging region” in relation to any year of assessment means any Divisional

Secretary’s Division determined by the

Minister in consultation with any appropriate authority and specified by

Order published in the Gazette as being in a state of economic backwardness in the year of assessment immediately preceding that year of assessment ;

“new undertaking” means an undertaking—

(a)

which commences commercial operations on or after April 1,

2008 ; and

(b)

in which the sum invested in the acquisition of capital assets (other than land), after

November 7, 2007 but before

Act, No. 9 of 2008

March 31, 2010, is not less than thirty million rupees ; and

“specified undertaking” means an undertaking engaged in the sale of any article not produced or manufactured by such undertaking.”.

Read on from s 18