20.
| (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, form any new undertaking referred to in subsection (2), shall be exempt from income tax for every year of assessment falling within the period determined in accordance with subsection (3) and subsection (4). |
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| (2) For the purpose of subsection (1), a "new undertaking" in relation to any company and to any year of assessment, means an undertaking -
| | (a) carried on by such company ; | | |
| | (b) located in any area outside the administrative districts of Colombo and Gampaha and specified in part A or Part B of the Second Schedule to this section ; | | |
| | (c) in which the sum invested before April 1, 2008 -
| | | (i) in any plant, machinery, furniture, building or land used in such undertaking, where such undertaking is an agricultural undertaking ; or |
| (ii) in any plant, machinery, furniture or building used in such undertaking, where such undertaking is an undertaking other than an agricultural undertaking, |
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| | (d) not formed by the splitting up or reconstruction or acquisition of any undertaking which was previously in existence ; | | |
| | (e) in which the number of employees employed at any time prior to April 1, 2008 and thereafter throughout that year of assessment, is not less than -
| | | (i) fifty, where such undertaking is an undertaking for the provision of information technology enabling services or printing on paper or the manufacture of any packing materials ; or |
| (ii) two hundred, where such undertaking is an undertaking other than an undertaking referred to in subparagraph (i). |
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| (3)Where the sum invested in accordance with paragraph (c) of subsection (2) falls within the range specified in any entry in Column I of the First Schedule hereto, the period for which the profits and income are exempt from income tax, shall be the period specified in the corresponding entry -
| | (a) in sub Column A of Column II, where the undertaking referred to in that subsection is located within any administrative district referred to in Part A of the Second Schedule hereto ; and | | |
| | (b) in sub Column B of Column II, where the undertaking referred to in that subsection is located within any administrative district referred to in Part B of the Second Schedule hereto. | | |
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| (4)The period specified in each entry in sub-Column A or sub-Column B of Column II of the First Schedule to subsection (3), shall commence from the commencement of the year of assessment -
| | (a) in which the new undertaking referred to in subsection (1) commences to make profits from the transactions entered into in that year of assessment; or | | |
| | (b) which occurs not later than three years reckoned from the commencement of the year of assessment in which such undertaking commences commercial operations, | | |
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Sri Lanka Consolidated Acts