97.
| (1)
| | (a) Where Parliament by resolution approves any agreement entered into between the Government of Sri Lanka and the Government of any other territory or any agreement by the Government of Sri Lanka with the Governments of any other territories, for the purpose of affording relief from double taxation in relation to income tax under Sri Lanka law and any taxes of a similar character imposed by the laws of that territory, the agreement shall, notwithstanding anything in any other written law, have the force of law in Sri Lanka, in so far as it provides for -
| | | (i) relief from income tax; |
| (ii) determining the profits or income to be attributed in Sri Lanka to persons not resident in Sri Lanka, or determining the profits or income to be attributed to such persons and their agencies, branches or establishments in Sri Lanka; |
| (iii) determining the profits or income to be attributed to persons resident in Sri Lanka who have special relationships with persons not so resident ; |
| (iv) exchange of information ; or |
| (v) assistance in the recovery of tax payable. |
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| | (b) Every agreement which is approved by a resolution under paragraph (a), shall be published in the Gazette together with a notice that it has been so approved. | | |
| | (c) In any case where any agreement referred to in paragraph (a) provides that tax payable under the laws of any territory outside Sri Lanka, shall be allowed as a credit against any tax payable in Sri Lanka, the credit to be granted in respect of any Sri Lanka tax upon profits or income arising from any source, shall not exceed the amount of the Sri Lanka tax payable in respect of such profits or income. | | |
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| (2)
| | (a) For the purposes of this section -
| | | (i) "income" shall be calculated as far as may be in accordance with the provisions of this Act relating to the ascertainment of assessable income, but shall not include any sum payable out of such income by way of interest, annuity, ground rent or royalty; |
| (ii) "Sri Lanka tax" means the amount of income tax payable under this Act before deducting any reliefs under this section, but does not include tax on any sum payable, by way of interest, annuity, ground rent, or royalty out of the income in respect of which the tax is charged. |
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| | (b) The Sri Lanka rate of tax shall be ascertained by dividing the Sri Lanka tax by the income on which the tax has been paid or is payable, calculated in accordance with paragraph (a) of this sub section. | | |
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| (3) Every agreement entered into between the Government of Sri Lanka and the Government of any other territory and having the force of law in Sri Lanka by virtue of the provisions of section 70 of the Inland Revenue Act, No. 4 of 1963, or section 82 of Inland Revenue Act, No. 28 of 1979, or section 92 of the Inland Revenue Act, No. 38 of 2000, shall be deemed for all purposes to be an agreement approved by Parliament by resolution under subsection (1) of this section. |
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Sri Lanka Consolidated Acts