| (1) The income tax to which any company resident in Sri Lanka in any year of assessment shall be liable for that year of assessment, shall consist of an amount -
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| (a) calculated on the taxable income of such company for that year of assessment at the appropriate rate specified in the Second Schedule to this Act ; | | |
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| (b) equal to ten per centum of the aggregate amount of the gross dividends distributed by such company, not being a unit trust or mutual fund approved by the Securities and Exchange Commission of Sri Lanka, in that year of assessment out of the profits for any year of assessment, other than any such dividends distributed -
| | | (i) to any company or other body of persons who or which is exempt from income tax under paragraph (a) or paragraph (c) of section 7; |
| (ii) to any unit trust or mutual fund approved by the Securities and Exchange Commission of Sri Lanka ; |
| (iii) to any shareholder who is exempt from income tax under seciton 10, in respect of such dividend; or |
| (iv) out of any dividend received from another resident company. |
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| (c) in the case of any public corporation not less than seventy-five per centum of the capital of which is provided by the Government other than by way of loan, an amount equal to twenty-five per centum of the balance of its profits after deducting therefrom the income tax payable for that year of assessment under paragraph (a) : | | |
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| (d) in the case of any company liable to pay tax under paragraph (a) of this subsection at a rate not less than thirty per centum for any year of assessment an amount equal to two and one half per centum of the taxable income of such company and such tax to be credited to the Human Resources Endowment Fund established by the Government: Provided however, such amount of tax shall be credited to the Consolidated Fund, pending the establishment of the Human Resources Endowment Fund. | | |
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Sri Lanka Consolidated Acts