25. *
| (1) The income tax to which a company resident in Ceylon in the year preceding the year of assessment shall be liable shall consist of-[* The amendment made in section 25 of the principal Act by paragraph (b) of subsection (1) of section 16 of Act No. 18 of 1965 shall be deemed to have come into force on March 30, 1963-See section 16 (2) of Act No. 18 of 1965.]
| | (a) a sum equal to 57 per centum of the taxable income of such company for such year of assessment, and | | |
| | (b) a sum equal to 334 per centum of the aggregate amount of the gross dividends distributed by such company out of the profits on which the taxable income of such company is computed for such year of assessment: | | |
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| (1A) Subsection (1) of this section shall for each year of assessment commencing on or after April 1, 1965, have effect subject to the following modifications: - (a) as though in paragraph
(2) Where a dividend is paid by any resident company to another resident company and either-
| | (a) of that subsection, there were substituted, for the expression " 57 per centum ", the expression " 50 per centum "; and | | |
| | (b) as though in the proviso to that subsection, there were substituted, for the expression " 28½ per centum ", wherever that expression occurs in that proviso, the expression 25 per centum ". | | |
| | (a) a deduction has been made under section 27 (1) in respect of that dividend by the first-mentioned company, or | | |
| | (b) that dividend consists of any part of the amount of a dividend received by the first-mentioned company from another resident company, | | |
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| (2A) Where a dividend is paid by any non-resident company to a resident company out of the profits of such non-resident company for any year of assessment and the Commissioner is satisfied that such non-resident company has paid income tax under this Act on more than half of its total profits (whether arising in or derived from Ceylon or elsewhere) for such year of assessment, that dividend shall, notwithstandinganything to the contrary in any other provision of this Act, be deemed not to form part of the assessable income of such resident company. |
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| (3) In subsection (1), "amount of the gross dividends " of a company means the amount of the dividends before such deductions as the company is entitled to make under this Act for tax are made from the dividends. |
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Sri Lanka Consolidated Acts