33.
| (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 or rates of tax specified-
| | | (i) in Part I of the Second Schedule to this Act in the case of a company other than a company referred to in sub-paragraph (ii) or sub-paragraph (iii), or |
| (ii) in Part II of the Second Schedule to this Act in the case of a company which was a small company either throughout that year of assessment or, where the company was incorporated in that year of assessment, from the date of its incorporation to the end of that year, or |
| (iii) in Part III of the Second Schedule to this Act in the case of a company which was a people's company either throughout that year of assessment or, where the company was incorporated in that year of assessment, from the date of its incorporation to the end of that year, and |
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| | (b) a sum equal to thirty-three and one-third per centum of the aggregate amount of the gross dividends distributed by the company in that year of assessment out of profits on which the taxable income of such company is computed for any year of assessment. | | |
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| (2) For the purposes of subsection (1)-
| | (a) " people's company" means a company which is resident in Sri Lanka and in respect of which the Assessor is satisfied that -
| | | (i) it is not a private company within the meaning of the Companies Ordinance ; |
| (ii) the number of shareholders of the company exceeds one hundred and the nominal value of each share does not exceed ten rupees ; |
| (iii) any person may invest in one or more shares of the company at any allotment of Shares by the company or in the open market; |
| (iv) no person either individually or together with his wife or minor children holds, either directly or through nominees, more than five per centum of the issued share capital; |
| (v) there are three or more directors each owning one or more shares ; |
| (vi) none of the directors of the company holds office as director of any other people's company; and |
| (vii) no other company holds any share either directly or through nominees ; |
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| | (b) " small company " means a company -
| | | (i) which is resident in Sri Lanka, |
| (ii) the issued capital of which does not exceed five hundred thousand rupees, |
| (iii) which has not reduced its issued capital on or after November 15, 1978, and |
| (iv) which is not formed on or after November 15, 1978, by the reconstruction of an existing company or by the acquisition of any plant, machinery, fixtures or building of an existing company ; |
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| | (c) " amount of the gross dividends " of a company means where a deduction under section 38 is made by the company in respect of the dividends, the amount of the dividends before such deduction is made, and where no such deduction is made the amount of the dividends increased by fifty per centum thereof. | | |
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Sri Lanka Consolidated Acts