25. Section 33 of the principal enactment is hereby amended as follows :
| (1) by the repeal of subsections (1) and (1A) of that section and the substitution therefor of the following subsections:
| | " (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
| | | (a) an amount 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 as the rate applicable to companies of that class ; and |
| (b) an amount equal to a percentage of the aggregate amount of the gross dividends distributed by such company in that year of assessment out of the profits on which the taxable income of such company is computed for any year of assessment, such percentage being
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| (2) by the substitution in subsection (2) of that section for the words and " For the purpose of subsections (1) and (1A) ", figures of the words and figures " For the purposes of subsection (1) " ; |
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| (3) by the substitution in sub-paragraph (ii) paragraph (b) of subsection (2) of that section for the words " the issued capital of which does not exceed five hundred thousand rupees,", of the words " the issued capital of which does not exceed five hundred thousand rupees either throughout the year of assessment for which the taxable income is computed or from the date of incorporation of the company to the end of that year of assessment,"; |
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| (4) by the repeal of paragraph (c) of subsection (2) of that section and the substitution therefor of the following paragraph:
| | (c) " amount of gross dividends" of a company other than a quoted public company means
| | | (i) in any case where a deduction under section 38 is made by the company in respect of its dividends, the amount of the dividend before such deduction is made; |
| (ii) in any case where no such deduction is made by the company in respect of its dividends, the amount of the dividend increased by
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Sri Lanka Consolidated Acts