26.*
| (1) The income tax to which a non-resident company shall be liable-
| | (a) shall, where there are remittances of such company in the year preceding such year of assessment or, if the statutory income of such company is directed by the Commissioner under section 12 (2) to be computed to some day other than the thirty-first day of March as is specified in the direction, where there are remittances in the year ending on such specified day in the year preceding such year of assessment, consist of a sum equal to 57 per centum and an additional 6 per centum, of the taxable income of such company for such year of assessment and a sum which shall, if the aggregate amount of such remittances is less than one-third of such taxable income, be equal to 33 per centum of such aggregate amount, and if such aggregate amount is not less than one-third of such taxable income, be equal to 331/3 per centum of one-third of such taxable income; and [* The amendment made in section 26 by paragraphs (b), (c) and (d) of subsection (1) of section 17 of Act No. 18 of 1965 shall be deemed to have come into force on March 30, 1963-See section 17 (2) of Act No. 18 of 1965.] | | |
| | (b) shall, where there are no such remittances, consist of a sum equal to 57 per centum and an additional 6 per centum, of such taxable income. | | |
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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 as though there were substituted, for the expression " 57 per centum", wherever that expression occurs in that subsection, the expresssion " 50 per centum ". |
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| (2) In subsection (1), "remittances", with reference to a non-resident company, mean-
| | (a) sums remitted abroad out of the profits of that company, such sums not including any dividends paid by a resident company to such non-resident company if such resident company made a deduction under section 27 (1) in respect of such dividends, | | |
| | (b) such part of the proceeds of the sale abroad of products exported by that company as is retained abroad, and | | |
| | (c) in respect of any products exported by that company and not sold in a wholesale market or not sold at all, such part of the profits deemed under section 59 to be derived from Ceylon as is retained abroad. | | |
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| (3) Where a dividend is paid by any resident company to any non-resident company and either-
| | (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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| (4) Every resident company shall deduct from the amount of any dividend which becomes payable to any non-resident company during any year of assessment-
| | (a) if such dividend consists of any part of the amount of a dividend received by such resident company from another resident company, income tax equivalent to six per centum of the amount of the first-mentioned dividend increased by fifty per centum, and | | |
| | (b) if the first-mentioned dividend does not consist of any part of the amount of a dividend received by such resident company from another resident company, income tax equivalent to six per centum of the amount of such first-mentioned dividend, | | |
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Sri Lanka Consolidated Acts