7. Exemption from the Land Lease Tax

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

(1)

The Land Lease Tax payable under section 6, shall not be applicable on the lease of—

(a)

any land a Diplomatic Mission of another State within the meaning of the Diplomatic Privileges

Act or to an International, Multilateral or Bilateral

Organization recognized in terms of that Act;

(b)

a condominium parcel situated on or above the fourth floor of a building specified under the provisions of the Apartment Ownership Law

(excluding the ground level floor and floors which accommodate any common element or elements within the meaning of Apartment Ownership Law)

where the period of lease is thirty five years or above and the lease rental for the full period of lease is paid through inward remittance of foreign currency on or prior to the date of the execution of the relevant indenture of lease;

(c)

any land to a dual citizen of Sri Lanka within the meaning of the Citizenship Act;

(d)

any land to a foreign investor in consequent to a decision of the Cabinet of Ministers taken prior to

January 1, 2013, involving direct investment of foreign currency as per the related agreements on such investment, and structured on the basis of any written law governing the tax regime prior to

January 1, 2013, and has ensured compliance by making inward foreign remittances to Sri Lanka;

(e)

any land situated within a Bonded Area or a Free

Port declared under the Finance Act, No. 12 of 2012.

(2)

The Minister may in consultation with the Minister to whom the subject of lands has been assigned and with the prior written approval of the Cabinet of Ministers, by Order published in the Gazette, exempt any foriegn entity engaged in the banking, financial, insurance, maritime, aviation, advanced technology or infrastructure development project identified as a Strategic Development Project, in terms of the povisions of the Strategic Development Projects Act,

No.14 of 2008, from the application of the provisions of section 6.

(3)

The Minister may in consultation with the Minster to whom the subject of Lands has been assigned and with the prior written approval of the Cabinet of Ministers, by Order published in the Gazette, exempt any foreign company engaged in international commercial operations, from the application of the provisions of section 6, where the land is leased to locate or relocate its global or regional operations or to set up a branch office.

Read on from s 8