18. The following new Chapter is hereby inserted immediately after Chapter VIII and shall have effect as Chapter VIIIA of the principal enactment.
| 32F.
| | (1) Where an exemption from income tax for a period of five years has been granted to a company under paragraph (b) of sub section (1) of section 20 and the unexpired part of such period of five years Is, on April 1 1994 not less than four years, such company may, by communication in writing addressed to the Commissioner- General before December 31,1994, opt to forego the exemption to which such company is entitled under that paragraph and to be charged with income tax for the unexpired part of such period. | | |
| | (2) Where a company exercises the option referred to in subsection (1), it shall cease to be entitled to any exemption from income tax under paragraph (b) of subsection (1) of section 20 in respect of the balance part of" the period for which it was exempted from income tax under that paragraph and where the taxable income of such company for any year of assessment commencing on or after April 1, 1994, but prior to April 1, 2014, include any export profits and income from any undertaking approved under paragraph (b) of subsection (i) of section 20. then, such part of such taxable income as consists of such export profits and income shall notwithstanding anything in this Act, be chargeable with income tax at the rate of ten per centum. | | |
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| 32G. Where any person (not being a company ) commences after November 10, 1993 to carry on any specified undertaking and the taxable income of that person for any year of assessment commencing on or after April 1, 1994 but prior to April 1 2014 includes any qualified export profits and income such part of the taxable income as consists of such qualified export profits and income shall subject to the provisions of this Act, be chargeable with income tax at the part or entirety of such qualified export profits and income as is in excess of the taxable income which is chargeable with income tax at the rate of ten per centum. |
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| 32H. Where any company commences after November 10, 1993 to carry on any specified undertaking and the taxable income of that export profits and income the taxable commencing on or after April 1 ,1994 but prior to April 1 2014 includes any qualified export profits and income shall notwithstanding anything to the contrary in this Act, be chargeable with income tax at the rate of fifteen per centum. |
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| 32J. Where any person other than a person referred to in section 32G not being a company and the taxable income of such person for any year of assessment commencing on or after April 1,1995 but prior to April 1,2015, includes any qualified export profits and income from any specified undertaking such part of the taxable income as consists of such qualified export profits and income shall subject to the provisions of this Act, be chargeable with income tax at the rate of fifteen per centum including such part or the entirety of such qualified export profits and income as is in excess of the taxable income which is chargeable with income tax at the rate of ten per centum. |
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| 32K. Where the taxable income of any company other than a company referred to in section 32H for any year of assessment commencing on or after April 1, 1995 but prior to April 1,2015 includes any qualified export profits and income from any specified undertaking such part of such taxable income as consists of such qualified export profits and income shall notwithstanding anything to the contrary in this Act, be chargeable with income tax at the rate of per centum. |
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| 32L.
| | (1) Where the taxable income of any person (other than a company ) for any year of assessment includes any dividend-
| | | (ii) being a dividend paid by any company out of such dividend received by that company as is referred to in paragraph (i) (a) or paragraph (i) (b),if the first mentioned dividend is paid during any year of assessment in which the second mentioned dividend was received by that company, or within one year thereafter ; or |
| (iii) being a dividend out of any such dividend as is referred to in paragraph (i) (a) of paragraph (i) (b) received by any company through one or more intermediary companies during the period for which the profits and income out of which the dividends referred to in paragraph (i) (a) or paragraph (i) (b) are paid are taxable at the rate of ten per centum or within two years thereafter, and paid by such company within one year from the date of receipt of the first mentioned dividend by such company, |
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| | (2) Where the taxable income of any person (other than a company) for any year of assessment includes any dividend"
| | | (ii) being a dividend paid by any company out of such dividend received by that company as is referred to in paragraph (i) (a) or paragraph (i) (b), if the first mentioned dividend is paid during any year of assessment in which the second mentioned dividend was received by that company or within one year thereafter ; or |
| (iii) being a dividend out of any such dividend as is referred to in paragraph (i) (a) or paragraph (i) (b) received by any company during the period for which the profits and income out of which, the dividends referred to in paragraph (i) (a) or paragraph (i) (b) are paid are taxable at the rate of fifteen per centum or within two years thereafter, and paid by such company within one year from the dote of receipt of the first mentioned dividend by such company, |
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| | (3) Subject to the provision of section 35 where the taxable income of any company includes any dividend referred to in subsection (1) or subsection (2) the rate of income tax applicable to such part of such taxable income as consists of such dividend shall fifteen per centum. | | |
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| 32M.
| | (1) Where any person or partnership who or which carries on any undertaking for the production or manufacture and supply, to any specified undertaking referred to in sub-paragraph (i) of paragraph (d) of section 32 Q
| | | (a) of any commodities (other than black tea in bulk, crepe rubber, sheet rubber, scrap rubber, coconut oil, desiccated coconut (other than dedicated coconut manufactured by using continuous scale automated process technology and marketed with a quality guarantee) copra, fresh coconut, coconut fibre or such other commodity as may be specified by the Minister by notice published in the Gazette, for export by such specified undertaking without further production or manufacture by such specified undertaking, or |
| (b) of any goods for the production or manufacture by such specified undertaking of any commodity for export by such specified undertaking, |
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| | (2) Where any person referred to in subsection (1) is a company (including a company being a partner of any such partnership) and the taxable income of such company for any year of assessment commencing on or after April 1 , 1995 includes profits and income referred to in subsection (1) of this section then such company shall be chargeable with income tax at the rate of fifteen per centum in respect of such profits and income. | | |
| | (3) Where any person referred to in subsection (1) is an individual (including individual being a partner of such partnership) and the taxable income of such individual for any year of assessment commencing , on or after April 1, 1995 includes profits and income referred to in subsection (1) then .such individual shall, subject to the provisions of this Act be chargeable with income tax at the rate of fifteen per centum including such part or entirety of such profits and income as is in excess of the taxable income which is chargeable with income tax at the rate of ten per centum. | | |
| | (4) The provisions of subsections (1), (2) and (3) shall apply if the supply referred to therein"
| | | (a) is made during the period for which the taxable income of the person who, o of any partner of any partnership which ,carried on the specified undertaking referred to in subsection (1) is chargeable with income tax in accordance with the provisions of this Chapter. |
| (b) is a supply in respect of which such documentary evidence as is required to satisfy the Commissioner-General the exports relating to such supply were in act made ,is adduced. |
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| 32N.
| | (1) Where any resident company or any partnership in Sri Lanka which carries on or exercises and trade business profession or vocation earn in any year of assessment commencing on or after April 1,1995 any profits and income in foreign currency in respect of services, rendered in that year of assessment by such company or by such partnership outside Sri Lanka in the course of carrying out such profession vocation or any construction project in the course of carrying on any trade or business and such profits and income so earned (less such amount as the Commissioner -General consider to be reasonable expenses) are remitted to Sri Lanka by such profits and income shall notwithstanding anything to the contrary in this Act, be chargeable with income tax in accordance with the succeeding provisions of this section. | | |
| | (2) Where the taxable income of any company referred to in subsection (1) for any year of assessment commencing on or after April 1,1995, includes profits and income referred to in subsection (1) then such company shall be chargeable with income tax at the rate of fifteen per centum in respect of such profits and income. | | |
| | (3) Where the taxable income for any year of assessment referred to in subsection (1) of any partner of any partnership not being a company) includes any profits and income referred to in subsection (1) which accrued to him by way of his share of profits from such partnership, such profits and provisions long be chargeable with income tax at the rate of fifteen per centum including such part of the entirety of such and income as it in excess of the taxable income which is chargeable with income tax at the rate of ten per centum. | | |
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| 32P.
| | (1) Where any individual or any partnership in Sri Lanka earns in any year of assessment commencing on or after April 1,1995 any emoluments and fees in foreign currency in respect of services rendered in Sri Lanka by such individual or by such partnership in Sri Lanka to any person or partnership outside Sri Lanka, in the course of any profession, or any vocation in the field of literature or fine arts carried on or exercised by such individual or by such partnership outside Sri Lanka but not in the course of employment under such person or partnership outside Sri Lanka , and such emoluments and fees are remitted to such individual or to such partnership in Sri Lanka through a bank such emoluments and fees, shall not withstanding anything to the contrary in this Act, be chargeable with income tax in accordance with the succeeding provisions of this section. | | |
| | (2) Where the taxable income for any year of assessment referred to in subsection (1), of any individual includes any emoluments and fees referred to in subsection (1) earned by him or profits from any partnership in Sri Lanka referred to in subsection (1) such emoluments and fees shall subject to the provisions of this Act be chargeable with income tax at the rate of fifteen per centum including such part of the entirety of such emoluments and fees as is in excess of the taxable income which is chargeable with income tax at the rate of ten per centum. | | |
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| 32Q. For the purposes of this Chapter -
| | (a) " qualified export profits and income " in relation to any person means the sum which bears to the profits and income (within the meaning of paragraph (a) of section 3 after excluding therefrom any profits and income from the sale of gems and Jewellary and any profits and income from the sale of capital asses) for that year of assessment from any specified undertaking carried on by such person ascertained in accordance with the provisions of this Act, the same proportion as the export turnover of that undertaking for that year of assessment bears to the total turnover of that undertaking for that year of assessment; | | |
| | (b) "export turnover" in relation to any specified undertaking means the total amount receivable whether received or not by that undertaking from the export of goods or commodities or from the provision of any service referred to sub paragraph (ii) of paragraph (d) but does not include-
| | | (i) any amount receivable, whether received or not, from the expert of gems or Jewellary or from the sale of any capital assets ; |
| (ii) any amount receivable, whether received or not, from the expert of black tea in bulk, crepe rubber, sheet rubber. scrap rubber, coconut oil, desiccated coconut (other than desiccated coconut manufactured by using continuous scale automated process technology and marketed with a quality guarantee), copra, fresh coconuts, coconut fibre or such other commodity as may be specified by the Minister by Notice published in the Gazette; or |
| (iii) any profits and income not being profits and income within the meaning of paragraph (a) of section 3 ; |
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| | (c) " total turnover " in relation to any specified undertaking means the total amount receivable, whether received or not, by that undertaking from any trade or business carried on by that undertaking but does not include any amount receivable, whether received or not, from the sale of capital assets, gems or Jewellary or any profits and income not being profits and income within the meaning of paragraph (a) of section 3 ; | | |
| | (d) "specified undertaking" means any undertaking which is engaged in"
| | | (i) the export of non-traditional goods manufactured, produced or purchased by such undertaking ; or |
| (ii) the performance of any service of ship repair, ship breaking, repair and refurbishment of marine cargo containers, provision of computer software, computer programmes, computer systems or recording computer data, or such other services as may be specified by the Minister by Notice published in the Gazette, for payment in foreign currency: |
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Sri Lanka Consolidated Acts