ACT, No. 9 OF 2015

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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
INLAND REVENUE (AMENDMENT)
ACT, No. 9 OF 2015
[Certified on 30th October, 2015]
Printed on the Order of Government
Published as a Supplement to Part II of the Gazette of the Democratic
Socialist Republic of Sri Lanka of October 30, 2015
PRINTEDATTHE DEPARTMENTOFGOVERNMENTPRINTING,SRILANKA
TO BEPURCHASED AT THE GOVERNMENT PUBLICATIONS BUREAU, COLOMBO 5
Price : Rs. 42.00 Postage : Rs. 50.00

Inland Revenue (Amendment) 1
Act, No. 9 of 2015
[Certified on 30th October, 2015]
L.D.—O. 11/2015
AN ACT TO AMEND THE INLAND REVENUE
ACT, NO. 10 OF 2006
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows :-
1. This Act may be cited as the Inland Revenue Short title and
(Amendment) Act, No. 9 of 2015, and shall be deemed for all the date of
operation.
purposes to have come into operation on April 1, 2015 unless
stated otherwise.
2. Section 7 of the Inland Revenue Act, No. 10 of 2006 Amendment of
(hereinafter referred to as the “principal enactment”) as last section 7 of the
Inland Revenue
amended by Act, No.8 of 2014 is hereby further amended in Act, No. 10 of
paragraph (b) of that section as follows:- 2006.
(1) by the substitution in sub-paragraph (xvii) of that
paragraph for the words and figures “on or before
March 31, 2008 or for any year of assessment
commencing on or after April 1, 2013, arising out of
business”, of the words and figures “on or before
March 31, 2008, arising out of business”;
(2) by the substitution in sub-paragraph (lxxii) of that
paragraph for the words and figures “Act, No. 12 of
1986; and”, of the words and figures “Act, No. 12 of
1986;”;
(3) by the substitution in sub-paragraph (lxxiii) of that
paragraph for the words and figures “Trust
Ordinance (Chapter 87).”, of the words and figures
“Trust Ordinance (Chapter 87); and” ; and
2—PL 009232—2,950 (09/2015)
2 Inland Revenue (Amendment)
Act, No. 9 of 2015
(4) by the addition immediately after sub-paragraph
(lxxiii) of that paragraph, of the following new sub-
paragraph:-
“(Ixxiv) the Diabetes Association of Sri Lanka
incorporated by the Diabetes Association of
Sri Lanka (Incorporation) Act, No. 1 of 1992.” .
Amendment of 3. Section 8 of the principal enactment as last amended
section 8 of the by Act, No. 8 of 2014 is hereby further amended in subsection
principal (1) of that section as follows:-
enactment.
(1) by the substitution in paragraph (x) of that
subsection for the words “for that year of
assessment.”, of the words “for that year of
assessment; and”; and
(2) by the addition immediately after paragraph (x) of
that subsection, of the following new paragraph:-
“(y) benefit from provision of any loan by the
employer free of interest or at a subsidised
rate of interest, if such loan is provided not
out of funds borrowed for that purpose. ” .
Amendment of 4. Section 9 of the principal enactment as last amended
section 9 of the by Act, No. 8 of 2014 is hereby further amended as follows:–
principal
enactment.
(1) by the substitution in sub-paragraph (ii) of paragraph
(h) of that section, for the words and figures
“commencing on or after April 1, 2011, to any
individual”, of the words and figures “ commencing
on or after April 1, 2011, but prior to January 1, 2015,
to any individual”;
(2) by the addition immediately after paragraph (h) of
that section, of the following new paragraphs:-
“(hh) such part of any interest accruing for, or
arising in, for the period commencing on
January 1, 2015 and ending on March 31,
Inland Revenue (Amendment) 3
Act, No. 9 of 2015
2015, or for any year of assessment
commencing on or after April 1, 2015 to any
individual who is a citizen of Sri Lanka and
resident in Sri Lanka and who is sixty years
or more or reaching sixty years during the
period commencing from January 1, 2015
and ending on March 31, 2015 or who is
more than fifty nine years old on the first
day of the year of assessment commencing
on or after April 1, 2015, from any deposit
maintained in any bank or financial
institution authorized by the Central Bank
of Sri Lanka to accept deposits from the
general public or any registered society
within the meaning of the Co-operative
Societies Law, No. 5 of 1972;
(hhh) such part of any interest accruing for, or
arising in, any year of assessment
commencing on or after April 1, 2015, to
any individual or charitable institution
where such individual or charitable
institution maintains one savings account
or more than one savings account, where
the interest paid for a month is less than
five thousand rupees.
For the purpose of this paragraph,
“savings account” means an account,
whether or not subject to any condition
affecting the right to withdraw money
therefrom and which bears interest at a rate
not dependent on the period for which the
deposit is maintained;”; and
(3) by the addition immediately after paragraph (o) of
that section , of the following new paragraphs:-
“(p) the interest or discount accruing or arising
to any person from any investment made
4 Inland Revenue (Amendment)
Act, No. 9 of 2015
on or after January 1, 2015 in any
Corporate Debt Security, issued by the
Urban Development Authority
established by the Urban Development
Authority Law, No. 41 of 1978; and
(q) the interest accruing or arising to any
individual who is Sri Lankan, living or
employed abroad from any investment
made on or after January 1, 2015 in Nation
Development Bonds issued by the Central
Bank of Sri Lanka on behalf of the
Government.”.
Amendment of 5. Section 10 of the principal enactment as last amended
section 10 of by Act, No. 8 of 2014 is hereby further amended in subsection
the principal
enactment. (1) of that section as follows:-
(1) by the substitution in paragraph (l) of that
subsection for the words “the second mentioned
dividend by that company.”, of the words “the
second mentioned dividend by that company;” and
(2) by the addition immediately after paragraph (l) of
that subsection, of the following new paragraph:-
“(m) any dividend paid to a shareholder of any
new undertaking commenced on or after
April 1, 2015 for manufacture of products
for export, and which is not formed by
splitting-up or re-construction of an
existing undertaking with an investment
of not less than two million US Dollars
(or equivalent in any other currency) and
for which depreciation allowances are
entitled to under paragraph (h) of the first
proviso to paragraph (a) of subsection
(1) of section 25, where such dividends
Inland Revenue (Amendment) 5
Act, No. 9 of 2015
are paid out of such profits and income
of such new undertaking during the
period reckoned from the year of
assessment in which such new
undertaking commences to carry on
commercial operations and another four
years of assessment immediately
succeeding that year of assessment.”.
6. Section 13 of the principal enactment as last amended Amendment of
by Act, No. 8 of 2014 is hereby further amended as follows:- section 13 of
the principal
enactment.
(1) by the insertion immediately after paragraph ( qqqq)
of that section, of the following new paragraph:–
“(qqqqq) one half of the profits and income for
any period on or after April 1, 2015
from the production of films or dramas
of any individual who produces an
award winning cinema or a drama at an
international film or drama festival, for
a period of five years of assessment
commencing from the year in which
such award is received;” ;
(2) by the insertion immediately after paragraph ( tt) of
that section, of the following new paragraph:–
“ (ttt) the profits and income arising or
accruing to any Unit Trust from
investments made on or after January
1, 2015 in US Dollar deposits or US
Dollar denominated securities listed in
any foreign stock exchange;”; and
(3) by the insertion immediately after paragraph
(yyyyyyyy) of that section, of the following new
paragraph:-
“(yyyyyyyyy) the profits and income arising or
accruing to any company,
partnership or body of persons
6 Inland Revenue (Amendment)
Act, No. 9 of 2015
outside Sri Lanka for any year of
assessment commencing on or
after April 1, 2015, from any
payment made by way of royalty
as a specific requirement of any
information technology or
business process outsourcing
company in Sri Lanka, for the year
of assessment in which such
company in Sri Lanka commences
such operations and for another
year of assessment immediately
succeeding that year of
assessment;”.
Amendment of 7. Section 25 of the principal enactment as last amended
section 25 of
by Act, No. 8 of 2014 is hereby further amended as follows:–
the principal
enactment.
(1) in subsection (1) of that section-
(a) by the repeal of sub-paragraph (v) and sub-
paragraph (vi) of paragraph (a) of that
subsection, and the substitution therefor,
of the following sub- paragraph:–
“(v) any qualified building constructed
or any unit of a condominium
property acquired and which is
approved by the Urban
Development Authority
established by the Urban
Development Authority Law,
No. 41 of 1978 and constructed to
be used as a commercial unit or any
hotel building (including a hotel
Inland Revenue (Amendment) 7
Act, No. 9 of 2015
building complex) or any industrial
building (including any industrial
building complex) acquired from a
person who had used such building
in any trade or business-
(A) prior to April 1, 2015 at the
rate of six and two third per
centum per annum, on the
cost of construction or cost
of acquisition of such
building or unit; or
(B) on or after April 1, 2015 at
the rate of ten per centum
per annum on the cost of
construction or the cost of
acquisition of such building
or unit;”;
(b) by the addition immediately after paragraph
(g) of the proviso to paragraph (a) of that
subsection, of the following new
paragraph:–
“(h) where any plant, machinery or
equipment acquired and used on
or after April 1, 2015, in any new
undertaking commenced on or
after April 1, 2015 for the
manufacture of products for
exports with an investment of not
less than two million US Dollars
or its equivalent in other currency
and which is not formed by
splitting up or re-construction of
an existing undertaking, the rate
of depreciation shall be hundred
per centum of the cost of
acquisition;”;
8 Inland Revenue (Amendment)
Act, No. 9 of 2015
(c) in the second proviso to paragraph (a) of
that subsection, by the substitution for the
words and figures “referred to in sub-
paragraphs (i), (ii), (iii), or (iv)”, of the words
and figures “referred to in sub-paragraph
(i), (ii), (iii), (iv) or (v)”;
(d) in the proviso to paragraph (i) of that
subsection, by the insertion immediately
after paragraph (B) of that proviso, of the
following new paragraph:–
“(C) where such expenditure on
research is incurred on or after
April 1, 2015 , for any innovation
or research relating to high value
agricultural products and such
research is carried out by such
person himself or through any
research institution, in Sri Lanka”;
(e) by the insertion immediately after
paragraph (i) of that subsection, of the
following paragraph:–
“For the purpose of this paragraph the
Commissioner-General shall issue
guidelines in order to ensure the uniform
application of deduction;”;
(f) by the substitution in sub-paragraph (iv)
to the proviso to paragraph (k) of that
subsection for the words and figures
“under Chapter XIV or in the opinion”, of
the words and figures “under Chapter XIV
of this Act where such benefit is not exempt
under paragraph (s) of subsection (1) of
section 8 of this Act, or in the opinion”;
Inland Revenue (Amendment) 9
Act, No. 9 of 2015
(g) by the repeal of paragraph (w) of that
subsection and the substitution therefor,
of the following new paragraphs:-
“(w) for any year of assessment
commencing on or after April 1, 2014
any royalty or ground rent payable
for the relevant year of assessment
and paid by such person if such
amount was not allowed to be
deducted prior to April 1, 2014,
under paragraph (a) of subsection
(5) of section 32;
(x) for any year of assessment
commencing on or after April 1,
2015, an amount equal to three
hundred per centum of the
expenditure incurred by any person
registered with the Tertiary and
Vocational Education Commission
established under the Tertiary and
Vocational Educational Act, No. 20
of 1990 on standard skill
development training by any
institution recommended by such
Commission to be provided to
trainees;
(y) for any year of assessment
commencing on or after April 1,
2015, an amount equal to three
hundred per centum of the
expenditure incurred by any person
for brand promotion for the export
of products manufactured by such
persons.
For the purpose of this paragraph
“brand promotion” means, creating
an internationally recognized brand
name for a local value added
product or produce.”;
10 Inland Revenue (Amendment)
Act, No. 9 of 2015
(2) in subsection (5) of that section, by the insertion at
the end of the proviso to that subsection, of the
following new paragraph :-
“For the purpose of this subsection “person”
includes a partnership.”;
(3) in subsection (7) of that section-
(a) by the substitution for the words in the
definition of “capital assets” in paragraph
(b) of that subsection for the words “
means any plant, machinery, fixture,
fitting, utensils, articles or equipment”,
of the words “means any plant,
machinery, fixture, fitting, utensils, articles
or equipment, including computer
software or intangible assets other than
goodwill,”;
(b) by the repeal of sub-paragraph (iii) of
paragraph (f) of that subsection, and the
substitution therefor, of the following
new sub-paragraph:-
“(iii) where a company is incorporated
(hereinafter referred to as the “first
mentioned company”) to –
(a) take over the business
(including the capital
assets) carried on by an
individual either solely or
in partnership with others,
and acquires the capital
assets of such business
being carried on by such
individual or partnership;
or
Inland Revenue (Amendment) 11
Act, No. 9 of 2015
(b) segregate the business of
long term insurance and
general insurance as
separate businesses as
required in terms of
Regulation of Insurance
Industry (Amendment)
Act, No. 3 of 2011 or to
consolidate, acquire or
merge of any bank,
financial institution or
leasing company under
the guidance of the
Central Bank of Sri Lanka
subject to conditions
specified in the Guidelines
issued by the
Commissioner General
where such businesses
are carried out separately
prior to such segregation,
consolidation, acquisition
or merger, by each such
company (hereinafter
referred to as the “second
mentioned company”),
the cost of acquisition of each
capital asset by the first
mentioned company shall be
deemed to be the cost of
acquisition of such capital asset
by such individual or
partnership or the second
mentioned company, reduced
by the amount of any allowance
for depreciation granted in
respect of such asset to such
12 Inland Revenue (Amendment)
Act, No. 9 of 2015
individual or partnership or
second mentioned company,
and the date of acquisition of
such capital assets by the first
mentioned company, shall be
deemed to be the date of
acquisition of such capital asset
by such individual, partnership
or second mentioned
company;”.
Amendment of 8. Section 26 of the principal enactment as last amended
section 26 of
by Act, No. 8 of 2014 is hereby further amended in subsection
the principal
enactment. (1) of that section as follows:-
(1) in paragraph (l) of that subsection:-
(a) by the substitution for the words and
figures in sub-paragraph (v) of that
paragraph “the Value Added Tax Act,
No. 14 of 2002; or” of the words and figures
“the Value Added Tax Act, No. 14 of 2002
and any Nation Building Tax on Financial
Services within the provisions of the Nation
Building Tax Act, No. 9 of 2009; or”;
(b) by the substitution in sub-paragraph (vii)
of that paragraph for the words and figures
“Act, No. 12 of 2013;”, of the words and
figures “ Act, No. 12 of 2013; or”; and
(c) by the insertion immediately after sub-
paragraph (vii) of that paragraph, of the
following new sub-paragraph:-
“(viii) Super Gain Tax, Bars and Taverns
Levy, Casino Industry Levy, Mobile
Telephone Operator Levy, Satellite
Inland Revenue (Amendment) 13
Act, No. 9 of 2015
Location Levy, Dedicated Sports
Channel Levy and Mansion Tax
imposed and levied under the
provisions of the Finance Act,
No. 10 of 2015,”; and
(2) by the repeal of paragraph (m) of that subsection
and substitution therefor, of the following new
paragraph:-
“(m) any ground rent or royalty payable for any
period prior to April 1, 2014 and paid after
April 1, 2014 which is deductible under
paragraph (a) of subsection (5) of section
32 or annuity paid by such person;”.
9. Section 32 of the principal enactment as last amended Amendment of
by Act, No. 8 of 2014 is hereby further amended in subsection section 32 of
(5) of that section as follows:- the principal
enactment.
(1) in paragraph (a) of that subsection, by the
substitution for all the words and figures from “sums
paid by such person” to the words and figures
“subsection (1) of section 26:”, of the following
words and figures:-
“sums paid by such person for any year of
assessment by way of:
(i) any ground rent or royalty payable for
any period prior to April 1, 2014 and which
is paid after April 1, 2014; or
(ii) annuity or interest,
which he is not entitled to deduct under
section 25.
For the purpose of this paragraph interest
does not include the excess referred to in
paragraph (x) or paragraph (y) of subsection
(1) of section 26:”; and
14 Inland Revenue (Amendment)
Act, No. 9 of 2015
(2) by the insertion immediately after paragraph (d) of
that subsection, of the following new paragraph:-
“(dd) the balance , if any, of any loss deductible
under the provisions of this Act , of any
business of any bank, financial institution
or leasing company which is consolidated,
acquired or merged in terms of the
guidelines issued by the Central Bank of
Sri Lanka subject to conditions specified
in the guidelines issued by the
Commissioner General, shall continue to be
deducted, if it would have been claimed
under this section prior to such
consolidation, acquisition or merger,
notwithstanding anything to the contrary
in any other provision of this Act, but
subject to the provisions of paragraph (b),
from the total statutory income of the
respective bank, financial institution or
leasing company as a result of such
consolidation, acquisition or merger;”.
Amendment of 10. Section 34 of the principal enactment as last
section 34 of amended by Act, No. 8 of 2014 is hereby further amended as
the principal
enactment. follows:-
(1) in subsection (2) of that section: –
(a) in paragraph (b) of that subsection, by
the addition immediately after sub-
paragraph (ix), of the following new sub-
paragraph:-
“(x) National Kidney Fund established
under the National Kidney
Foundation of Sri Lanka
(Incorporation) Act, No. 34 of 2006;”;
Inland Revenue (Amendment) 15
Act, No. 9 of 2015
(b) in the paragraph (s) of that subsection, by
the substitution for all the words and
figures from “investment of not less than”
to the words and figures “business on or
after April 1, 2011:”, of the words and
figures “investment of not less than fifty
million rupees in the acquisition of fixed
assets made by any person on or after
April 1, 2011 but before April 1, 2014 in the
expansion of any undertaking which would
have been qualified for exemption under
section 16C or section 17A had such
undertaking commenced to carry on
business on or after April 1, 2011:”;
(c) in paragraph (u) of that subsection, by the
substitution for all the words and figures
from “ after April 1, 2013, then-” to the words
“whichever is lower;”, of the following
words and figures:-
“after April 1, 2013, then-
(i) such part of profits in excess of
five hundred thousand rupees ;
or
(ii) for any year of assessment ended
prior to April 1, 2015, one hundred
thousand rupees and for any year
of assessment commencing on or
after April 1, 2015, two hundred
and fifty thousand rupees,
whichever is lower;”;
16 Inland Revenue (Amendment)
Act, No. 9 of 2015
(d) by the substitution for paragraph (v) of
that subsection, of the following new
paragraph:-
“(v) such part of official emoluments
arising in Sri Lanka to any
individual who is not a citizen of
Sri Lanka and not resident in Sri
Lanka–
(i) for any year of
assessment commencing
on or after April 1, 2013,
but prior to April 1, 2015
does not exceed one
hundred thousand
rupees; or
(ii) for any year of
assessment commencing
on or after April 1, 2015
does not exceed two
hundred and fifty
thousand rupees;”;
(e) by the repeal of paragraph (x) of that
subsection and the substitution therefor,
of the following new paragraph:-
“(x) any expenditure incurred by any
bank, any financial institution or
any leasing company, by way of
cost of acquisition or merger of
any other bank, any other
financial institution or any other
leasing company, where such cost
is ascertained by considering all
the facts on case by case basis in
accordance with the guidelines
Inland Revenue (Amendment) 17
Act, No. 9 of 2015
issued by the Central Bank of Sri
Lanka, in the manner specified by
the Commissioner General for that
purpose.”; and
(2) in subsection (4) of that section by the insertion
immediately after sub-paragraph (ix) of paragraph
(b) of that subsection, of the following new sub-
paragraph:-
“(x) in respect of any qualifying payment
referred to in paragraph (x) of subsection
(2), on the expenditure incurred by any bank
or other company referred to in that
paragraph in any year of assessment shall
not exceed one third of the assessable
income or three hundred million rupees
whichever is higher. The balance, if any,
not deductible in the same year of
assessment shall be carried forward and
be deductible from the assessable income
of such bank or other company for the next
succeeding year of assessment and so on
subject to the same conditions.”.
11. Section 39 of the principal enactment is hereby Amendment of
amended by the substitution for the words “The gross royalty section 39 of
the principal
payable”, of the words “ The gross royalty (not being royalty enactment.
exempt under any other provision of this Act) payable”.
12. Section 40B of the principal enactment as last Amendment of
amended by Act, No.18 of 2013 is hereby further amended by section 40B of
the principal
the substitution for the words and figures “commencing on enactment.
or after April 1, 2009, of any”, of the words and figures
“commencing on or after April 1, 2009 but prior to April 1,
2015, of any”.
18 Inland Revenue (Amendment)
Act, No. 9 of 2015
Amendment of 13. Section 40C of the principal enactment is hereby
section 40C of amended in subsection (1) of that section, by the substitution
the principal
for all the words and figures from “Where the taxable income”
enactment.
to the words “and the rate of income tax”, of the following
words and figures:-
“Where the taxable income of any individual:
(i) being a citizen of Sri Lanka, for any year of
assessment commencing on or after April 1,
2014 but prior to April 1, 2015, includes any
profits from employment in the exercise of his
duties as a professional; or
(ii) includes any profits from employment for any
year of assessment commencing on or after
April 1, 2015,
(hereinafter in this section referred to as “relevant
profits”) and the rate of income tax”.
Amendment of 14. Section 45 of the principal enactment as last amended
section 45 of by Act, No. 8 of 2012, is hereby further amended as follows:-
the principal
enactment.
(1) in subsection (1) of that section:-
(a) in paragraph (b) of that subsection , for the
words “tourism; or”, of the words
“tourism;”;
(b) in paragraph (c) of that subsection , for the
words “construction work;” of the words,
“construction work; or”; and
(c) by the addition immediately after paragraph
(c) of that subsection, of the following new
paragraph :-
“(d) undertaking for the manufacture of
sugar;”; and
Inland Revenue (Amendment) 19
Act, No. 9 of 2015
(2) in subsection (2) of that section, by the addition
immediately after paragraph (d) of that subsection,
of the following new paragraph:-
“(e) undertaking for the manufacture of sugar”
means an undertaking carried on for locally
manufacturing sugar by using sugar cane
or beet or any other produce exclusively
cultivated locally.”.
15. Section 46 of the principal enactment as last amended Amendment of
by Act, No. 22 of 2011 is hereby further amended as section 46 of
the principal
follows:-
enactment.
(1) in subsection (1) of that section:-
(a) in paragraph (b) of that subsection , for the
words “tourism; or”, of the words
“tourism;”;
(b) in paragraph (c) of that subsection , for the
words “construction work;”, of the words
“construction work; or”; and
(c) by the addition immediately after paragraph
(c) of that subsection, of the following new
paragraph:-
“(d) undertaking for the manufacture of
sugar,”; and
(2) in subsection (2) of that section by the substitution
for the words “profits and income from any
agricultural undertaking” and “undertaking for
construction work” shall”, of the words “profits
and income from any agricultural undertaking” ,
“undertaking for construction work” and
“undertaking for the manufacture of sugar”, shall”.
20 Inland Revenue (Amendment)
Act, No. 9 of 2015
Insertion of new 16. The following new section is hereby inserted
section 48D of immediately after section 48C of the principal enactment and
the principal
shall have effect as section 48D of that enactment:-
enactment.
“Extension 48D. Notwithstanding the period specified
of the period in section 16D or paragraph (b) and (c) of
specified for
subsection (2) of section 17A to complete
the
fulfilment of investment and to commence the commercial
investment operations by any new undertaking which has
criteria by been approved by the Board of Investment of
any company
Sri Lanka by entering into an agreement under
entered into
an agreement section 17 of the Board of Investment of Sri
with the Lanka Law, No. 4 of 1978 which provides tax
Board of holiday under section 16D or section 17A of
Investment
this Act, if the approval of the Board of
of Sri Lanka
under section Investment was granted prior to October 31,
16D or 2014 and the company which invested in such
section 17A. undertaking is unable to complete the required
investment prior to April 1, 2015 and to
commence commercial operations prior to April
1, 2016 due to any practical reasons depending
on the nature of the business, such period shall
be extended up to April 1, 2018, if the
Commissioner-General is satisfied that the
nature of the activities engaged in by such
new undertaking are only activities qualified
under section 16D or section 17A and the Board
of Investment of Sri Lanka confirms , on request
made by the investor, that the reasons for such
extension is justifiable and acceptable by
examining the status of the progress of such
new undertaking.”.
Amendment of 17. Section 56D of the principal enactment is hereby
section 56D of amended as follows:-
the principal
enactment.
(1) by the substitution in that section for the words
“locally manufactured garments, bags made out of
fabric, linen, curtains or any other goods,”, of the
Inland Revenue (Amendment) 21
Act, No. 9 of 2015
words “locally manufactured garments, bags made
out of fabric, linen, curtains, packing items or ceramic
products,”; and
(2) by the substitution in the proviso of that section for
the words “the local value addition of such
garments, bags, linen, curtains or other goods,”, of
the words “the local value addition of such
garments, bags, linen, curtains, packing items or
ceramic products,”.
18. Section 58 of the principal enactment as last amended Amendment of
section 58 of
by Act, No. 8 of 2014, is hereby further amended as follows:-
the principal
enactment.
(1) by the substitution in that section for all the words
from “supply of any services, to any” to the words
“foreign principal to such person in Sri Lanka”, of
the following words and figures:-
“supply of-
(i) any services to any exporter of goods
or services or to any foreign principal
of such exporter directly, being services
which could be treated as essentially
related to the manufacture of such
goods or provisions of such services
exported by such exporter either directly
or through any export trading house;
(ii) any services provided by an agent of a
ship operator to such agent’s foreign
principal; or
(iii) any services provided by any freight
forwarder insofar as such services are
for export of goods,
22 Inland Revenue (Amendment)
Act, No. 9 of 2015
and the payment for such services are made
by such exporter, foreign principal or the
recipient of the services of the freight
forwarder, to such person in Sri Lanka”; and
(2) by the addition immediately after that section, of the
following new paragraph:-
“For the purpose of this section “freight
forwarder” means a person or a partnership who or
which is registered with the Central Bank of
Sri Lanka under the Exchange Control Act, as a
Freight forwarder and who-
(i) issues multi-modal documents of carriage
covered by a Freight Forwarders’ “All Risks
and Legal Liability Insurance Policy”; and
(ii) furnishes, together with the return of
relevant turnover for any relevant quarter,
copies of the statements, furnished to the
Controller of Exchange in respects of each
month comprised in such relevant quarter
of turnover prepared in the form specified
in the Third Schedule to the Notification
issued by the Controller of Exchange under
section 29B of the Exchange Control Act,
and net collections prepared in the form
specified in the Fourth, Fifth and Sixth
Schedules to such Notification.”.
Amendment of 19. Section 59B of the principal enactment as last
section 59B of amended by Act, No. 8 of 2014 , is hereby further amended in
the principal
enactment. paragraph (b) of subsection (2) of that section as follows:-
(1) in sub-paragraph (ii) of that paragraph, for the words
and figures “being any year of assessment
commencing on or after April 1, 2013 does not exceed
Inland Revenue (Amendment) 23
Act, No. 9 of 2015
five hundred million rupees;”, of the words and
figures “ being any year of assessment commencing
on or after April 1, 2013, but prior to April 1, 2015 ,
does not exceed five hundred million rupees;”; and
(2) by the addition immediately after sub-paragraph (ii)
of that paragraph, of the following new sub-
paragraph:-
“(iii) being any year of assessment commencing
on or after April 1, 2015, does not exceed
seven hundred and fifty million rupees.”.
20. Section 59F of the principal enactment is hereby Amendment of
amended by the repeal of subsection (1) of that section and section 59F of
the principal
substitution therefor, of the following new subsection :-
enactment.
“(1) Where the taxable income of any individual being a
citizen of Sri Lanka, for any year of assessment
commencing on or after April 1, 2014, includes any
profits and income from providing professional
services as a professional (hereinafter in this section
referred to as the “relevant profits”) and the rate of
income tax payable under the First Schedule to this
Act, on a part of such taxable income (hereinafter in
this section referred to as the “relevant part of the
taxable income”) exceeds twelve per centum, then
in regard to the relevant part of the taxable income,
the tax payable shall be computed as given below:-
(a) where such relevant part of the taxable
income exceeds the amount of the relevant
profits then the tax payable on such
relevant part of the taxable income shall be
computed as follows:-
(i) if such relevant profits does not
exceed twenty five million rupees,
then the tax payable on such
24 Inland Revenue (Amendment)
Act, No. 9 of 2015
portion of the relevant part of the
taxable income as is equal to the
relevant profits, shall be at the rate
of twelve per centum, and the tax
payable on the balance of the
relevant part of the taxable income,
shall be computed according to
such of the rates above twelve per
centum, as are applicable thereto
under the First Schedule to this Act;
or
(ii) if such relevant profits exceed
twenty five million rupees, then the
tax payable,
– on such portion of the relevant
part of the taxable income as is
equal to twenty five million
rupees shall be at twelve per
centum;
– on such protion of the balance
as does not exceed ten million
rupees shall be at the rate of
fourteen per centum; and
– on any balance relevant part
of the taxable income shall be
computed according to such
of the rates above twelve per
centum, as are applicable
thereto under the First
Schedule to this Act subject
to the following:—
Inland Revenue (Amendment) 25
Act, No. 9 of 2015
(A) where the rate of income tax,
under the First Schedule to
this Act, payable on a
portion of such balance
relevant part of the taxable
income exceeds sixteen per
centum:
– the tax payable on such
balance relevant part of
the taxable income as is
not exceeding the excess
of relevant profits over
thirty five million rupees
shall be computed at
sixteen per centum; and
– the tax payable on any
balance of the relevant
part of the taxable
income, shall be
computed according to
such of the rates above
sixteen per centum, as
are applicable thereto
under the First Schedule
to this Act; or
(B) where the rate of income tax
payable under the First
Schedule to this Act, on any
portion of such balance
relevant part of the taxable
income does not exceed
sixteen per centum, then
the tax payable on the
entirety of such balance
shall be computed at sixteen
per centum; or
26 Inland Revenue (Amendment)
Act, No. 9 of 2015
(b) where such relevant part of the
taxable income does not exceed the
amount of the relevant profits, then
the tax payable on the relevant part
of the taxable income shall be
computed as follows:-
(i) if such relevant profits do
not exceed twenty five
million rupees then, the tax
payable on the entirety of
the relevant part of the
taxable income, shall be at
twelve per centum; or
(ii) if the relevant profits exceed
twenty five million rupees,
then the tax payable,
– on the portion by which
twenty five million
rupees exceeds the
amount by which the
relevant profits exceed
relevant part of the
taxable income shall be
at twelve per centum;
– on the portion up to ten
million rupees of the
balance relevant part of
the taxable income shall
be at fourteen per
centum; and
– on any balance relevant
part of the taxable
income shall be at
sixteen per centum.”.
Inland Revenue (Amendment) 27
Act, No. 9 of 2015
21. The following new sections are inserted immediately Insertion of
after section 59H of the principal enactment and shall have sections 59I, 59J,
59K, 59L and 59M
effect as sections 59I, 59J, 59K, 59L and 59M of that of the principal
enactment :- enactment.
“Rate of 59I. The tax rate applicable on the profits
income tax
and income of an existing company carrying on
applicable to
profits and a business of manufacture of products (other
income of than liquor or tobacco), on expansion of the
any
manufacturing of such products of such
manufacturing
company company in any Province other than the
which carries Western Province (not by relocating the existing
on an company or part thereof), by investing in the
expansion of
such business acquisition of fixed assets (other than land or
to any building) not less than three hundred million
Province rupees for any year of assessment commencing
other than
the Western on or after April 1, 2015 but prior to April 1,
Province. 2017, and which is liable to pay income tax at
the rate specified in item 3 of PART-B of the
Second Schedule to this Act, shall be reduced
by fifty per centum up to a maximum not
exceeding five hundred million rupees, for the
year of assessment in which such company
commences the commercial operations of such
expansion project and another four years of
assessment immediately succeeding that year
of assessment.
Rate of 59J. The tax rate applicable on the profits
income tax and income of any company which is registered
applicable to
the profits with the Department of Inland Revenue for tax
and income purposes on or before December 31, 2015 with
of a new a committed investment in excess of five
company
hundred million rupees, to be made in any
engaged in
any manufacturing business (other than liquor or
manufacturing tobacco based products) not by splitting-up or
business.
re – construction of an existing undertaking of
28 Inland Revenue (Amendment)
Act, No. 9 of 2015
any nature within the specified period as
approved by the Commissioner General, shall
be reduced by fifty per centum for the year of
assessment in which such company commences
the commercial operations and for consecutive
period of six years of assessment immediately
succeeding that year of assessment, if the
applicable rate of income tax is twenty eight per
centum.
Income tax 59K. Such part of the tax computed in
payable by accordance with this Act, for any year of
local
assessment commencing on or after April 1, 2015,
manufacturer
who is in the as being payable by any manufacturer who
business since has been in the business of manufacturing
1970. since the year nineteen seventy and sustained
competitiveness with imports, shall
notwithstanding anything to the contrary in any
other provisions of this Act, be reduced by ten
per centum, on the profits and income from the
sales made on such manufactured products
(other than liquor or tobacco based products)
in the local market which is liable to tax at the
maximum rate of twenty eight per centum on
the profit on ssuch sales.
Income tax 59L. Such part of the tax computed in
payable by accordance with this Act, for any year of
local
assessment commencing on or after April 1, 2015,
entrepreneurs
engaged in as being payable by any local entrepreneurs
intercropping engaged in the intercropping activities or
activities or vegetable and food processing activities, be
vegetable and
reduced by fifty per centum, on the profits and
food
processing income from such activities.
activities.
For the purpose of this section :
“local entrepreneur” means, a person
who is a citizen of Sri Lanka and
Inland Revenue (Amendment) 29
Act, No. 9 of 2015
includes a company or partnership,
the controlling interest of which is
held by Sri Lankans;
“Intercropping activities” means,
cultivation of two or more crops
simultaneously on the same field;
“vegetable and food processing
activities” means, processing of
vegetables or foods by any person
with not less than thirty five percent
of local value addition and the final
product shall consist of not less than
seventy per centum of locally grown
vegetables or locally manufactured
foods.
Income tax 59M. Such part of the tax computed in
payable by a accordance with this Act, as being payable by
person on an
undertaking any person being a manufacturer or provider of
located in services who made investment in any
any lagging undertaking for the manufacture or the
region. provision of services located in any lagging
region in a sum of not less than two hundred
and fifty million rupees on or after February 1,
2015 but prior to March 31, 2017, shall
notwithstanding anything to the contrary in any
other provisions of this Act, be reduced by fifty
per centum, on the profits and income of such
person for the year of assessment in which such
undertaking commences business operations
and another four years of assessment
immediately succeeding that year of
assessment.
For the purpose of this section “lagging
region in relation to any year of assessment”
means, any Divisional Secretary’s Division as
30 Inland Revenue (Amendment)
Act, No. 9 of 2015
being in a state of economic backwardness as
specified, by the Commissioner-General by
Notice published in the Gazette in consultation
with any appropriate authority within whose
jurisdiction such Division comes and with the
approval of the Minister.”.
Amendment of 22. Section 61 of the principal enactment as last amended
section 61 of by the Act, No. 22 of 2011 is hereby further amended in sub-
the principal
enactment. paragraph (ii) of paragraph (b) of subsection (1) of that section,
by the substitution for the words and figures “distributable
profits of such company for the year of assessment”, of the
words and figures “distributable profits of such company
other than a company referred to in paragraph (h) of the first
proviso to paragraph (a) of subsection (1) of section 25, for
the year of assessment”.
Amendment of 23. Section 63 of the principal enactment as last
section 63 of amended by the Act, No. 8 of 2014 is hereby further amended
the principal
by the addition at the end of that section, of the following
enactment.
paragraph:-
“For the purpose of this section the profits and
income from such dividends which form part of the profits
under section 3(a) of this Act, means profits and income
after deducting expenses in ascertaining the profits from
such business of receiving dividends.”.
Amendment of 24. Section 94 of the principal enactment is hereby
section 94 of amended as follows:-
the principal
enactment.
(1) by the substitution for the word “royalties”
wherever it occurs in that section, of the words “
royalties or fees for technical services”;
(2) in paragraph (b) of that section for the words and
figures “ under section 32,”, of the words and figures
“ under section 25,”; and
Inland Revenue (Amendment) 31
Act, No. 9 of 2015
(3) by the addition at the end of that section, of the
following new paragraph:-
“For the purpose of this section the term “fees for
technical services” means payments of any kind,
received as consideration for managerial or technical
or consultancy services including the provision of
services of technical or other personnel other than
employment or professional services performed
through a fixed base.”.
25. Section 95 of the principal enactment as last amended Amendment of
by the Act, No. 22 of 2011 is hereby further amended in section 95 of
the principal
subsection (1) of that section as follows:-
enactment.
(1) in paragraph (b) of that subsection by the
substitution for the words “out of income arising in
Sri Lanka”, of the following:—
“out of income arising in Sri Lanka; or
(c) fees for technical services referred to in
section 94,”;
(2) in paragraph (aaa) of the proviso to that subsection,
by the substitution for the words “ provision of this
Act; and”, of the words “ provision of this Act;”;
(3) in paragraph (b) of the proviso to that subsection,
by the substitution for the words “ banking unit.”,
of the words “ banking unit ; and”; and
(4) by the addition immediately after paragraph (b) of
the proviso to that subsection, of the following new
paragraph:-
“(c) for any year of assessment commencing on
or after April 1, 2015, no deduction shall be
made under this section from any interest
paid to any individual on money deposited
32 Inland Revenue (Amendment)
Act, No. 9 of 2015
in any bank or financial institution and tax is
deductible on such interest at the rate of
two and a half per centum as referred to in
section 133 of this Act.”.
Insertion of new 26. The following new section is hereby inserted
section as immediately after section 105A of the principal enactment
section 105B in
the principal and shall have effect as section 105B of that enactment:-
enactment.
“The use of 105B. (1) The Minister may, on the
electronic recommendation of the Commissioner-General
communica-
make regulations for the purpose of authorizing
tions or
electronic or facilitating the use of electronic
records. communications or electronic records in respect
of matters specified in section 8 of the Electronic
Transactions Act, No. 19 of 2006.
(2) For the purpose of application of the
electronic means in filing returns, submitting
information and documents, the relevant
sections of the Act are amended as follows
which shall come into effect on such date as
the Minister may appoint by Order published
in the Gazette.
(a) in sections 28(4), 36(2)(b), 70(1), 73(1),
76(3), 104(2), 104A(2), 111, 112, 118, 122,
125(1), 130, 133, 162, 163, 165 and 177 by
the substitution for the words “in
writing” wherever it occurs in those
sections, of the words “in writing or
electronic means”, respectively;
(b) in sections 106 and 107 the words “in
writing”, wherever it arising relating to
the filing of return, issue of notices,
submission of information or documents
for the purposes of those sections, by
the substitution, of the words “in writing
or electronic means”, respectively;
Inland Revenue (Amendment) 33
Act, No. 9 of 2015
(c) in section 107 in paragraph (a) and in
paragraph (b) of the proviso of
subsection (1) of that section, by the
substitution for the words “published
in the Gazette.”, of the words
“published in the Gazette or official
website of the Department of Inland
Revenue.”, respectively.
27. Section 106 of the principal enactment, as last Amendment of
amended by the Act, No. 8 of 2014 is hereby further amended section 106 of
the principal
in paragraph (c) of the proviso to subsection (1) of that
enactment.
section, by the substitution for the words “income tax at the
rate of ten per centum has been deducted”, of the words
“income tax at the rate specified for the purpose of deduction
has been deducted”.
28. Section 107 of the principal enactment, as last Amendment of
amended by the Act, No. 8 of 2014 is hereby further amended section 107 of
the principal
by the repeal of paragraph (aa) of subsection (3) of that enactment.
section and the substitution therefor, of the following new
paragraph:-
“(aa) “approved accountant” for any year of assessment
commencing on or after April 1, 2014 means:
(i) an accountant who is a member of the
Institute of Chartered Accountants of Sri
Lanka; or
(ii) an accountant who is a fellow member of the
Association of Accounting Technicians of
Sri Lanka incorporated under the Companies
Act, No. 07 of 2007 in relation to any person
other than a company, or any partnership
where the turnover of the business of such
person or partnership for the year does not
exceed five hundred million rupees;”.
34 Inland Revenue (Amendment)
Act, No. 9 of 2015
Amendment of 29. Section 115 of the principal enactment as last
section 115 of
the principal amended by Act, No. 8 of 2012 is hereby further amended in
enactment. paragraph (a) of subsection (1) of that section by the
substitution for sub-paragraph (i), of the following new sub-
paragraph:-
“(i) receives remuneration:
(A) for any year ending prior to April 1, 2015,
in excess of fifty thousand rupees per
month or six hundred thousand rupees per
year: or
(B) for any year commencing from April 1,
2015, in excess of sixty two thousand and
five hundred rupees per month or seven
hundred and fifty thousand rupees per
year;”.
Amendment of 30. Section 133 of the principal enactment as last
section 133 of
amended by the Act, No. 8 of 2014 is hereby further amended
the principal
enactment. in subsection (4) of that section as follows:-
(1) in paragraph (a) of that subsection-
(a) in sub-paragraph (i) of that paragraph, by
the substitution for the words “of such
interest; and”, of the words “of such
interest;”;
(b) in sub-paragraph (ii) of that paragraph by
the substitution for the words “any
partnership”, of the words and figures “for
any year of assessment ending prior to April
1, 2015, any partnership”;
Inland Revenue (Amendment) 35
Act, No. 9 of 2015
(c) by the addition at the end of sub-paragraph
(ii) of that paragraph, of the following new
sub-paragraphs:-
“(iii) for any year of assessment
commencing on or after April 1, 2015
any partnership, charitable institution
or any individual the deduction shall
be made at the rate of two and a half
per centum of such interest; and
(iv) for any year of assessment
commencing on or after April 1, 2015,
body of persons the deduction shall
be made at the rate of eight per centum
of such interest.”;
(2) by the substitution in paragraph (b) of that
subsection, for the words “any year of assessment,
that its assessable income for that year of
assessment”, of the words and figures “any year of
assessment ending prior to April 1, 2015, that its
assessable income”;
(3) by the substitution in paragraph (c) of that
subsection, for the words “any individual then, in
relation to any year of assessment where”, of the
words and figures “any individual then, in relation
to any year of assessment ending prior to April 1,
2015 where”; and
(4) by the substitution in paragraph (d) of that
subsection, for the words “deduction shall be made,
at the rate of eight per centum of such interest:”, of
the words and figures “deduction shall be made for
any year of assessment ending prior to April 1, 2015
at the rate of eight per centum of such interest:”.
36 Inland Revenue (Amendment)
Act, No. 9 of 2015
Amendment of 31. Section 137 of the principal enactment as last
section 137 of amended by the Act, No. 8 of 2014 is hereby further amended
the principal
by the addition immediately after subsection (3) of that
enactment.
section, of the following new subsection:-
“(4) Any balance amount of notional tax credit entitled
to be claimed by any business of insurance prior to
segregation, or any bank, financial institution or
leasing company which is acquired, merged or
amalgamated, as the case may be, shall
notwithstanding any other provisions of this Act ,
be deemed to be an allowable deduction subject to
the conditions, if it would have been claimable if
not for such segregation (being a business of an
insurance), or acquisition, merger or amalgamation
of such bank, financial institution or leasing
company.”.
Amendment of 32. Section 139 of the principal enactment as last
section 139 of amended by the Act, No. 10 of 2007 is hereby further amended
the principal
by the repeal of subsection (1) of that section and the
enactment.
substitution therefor, of the following new subsection:-
“(1) For any year of assessment:
(a) ending prior to April 1, 2015, any person or
partnership from whose interest income the
income tax is deductible by a bank or
financial institution, or a company which
issues any corporate debt security in
accordance with the provisions of section
133 or section 135 and such interest income
will form part of the assessable income of
such person or divisible profit or income
of the partnership, as the case may be, for
any year of assessment, may, if the amount
of income tax payable by him or the relevant
partners for such year of assessment is less
than the income tax deductible during that
Inland Revenue (Amendment) 37
Act, No. 9 of 2015
year of assessment under section 133 or
section 135, make an application to the
Commissioner-General in such form and
containing such particulars as may be
specified by the Commissioner General,
requesting that a direction be issued to that
bank or financial institution or any
company which issues corporate debt
security, to make the necessary
adjustments in the deduction of income tax
in that year of assessment; and
(b) commencing on or after April 1, 2015 any
person (other than an individual or a
partnership) from whose interest income
the income tax is deductible by a bank or
financial institution in accordance with the
provisions of section 133 and such interest
income will form part of the assessable
income of such person for any year of
assessment, may, if the amount of income
tax payable by such person for such year
of assessment is less than the income tax
deductible during that year of assessment
under section 133, make an application to
the Commissioner-General in such form and
containing such particulars as may be
specified by the Commissioner General,
requesting that a direction be issued to that
bank or financial institution to make the
necessary adjustments in the deduction of
income tax in that year of assessment.”.
33. Section 150 of the principal enactment is hereby Amendment of
amended in subsection (1) of that section, by the substitution section 150 of
for the words “and shall furnish a return to the Commissioner- the principal
enactment.
General on a monthly basis containing such particulars as
may be specified by the Commissioner-General in relation to
such deductions.”, of the words and figures,
38 Inland Revenue (Amendment)
Act, No. 9 of 2015
“and shall furnish a return to the Commissioner-General:
(a) on a monthly basis, for any year of assessment
commencing prior to April 1, 2015; and
(b) on a quarterly basis, for any year of
assessment commencing on or after April 1,
2015,
containing such particulars as may be specified by
the Commissioner-General in relation to such
deductions.”.
Amendment of 34. Section 159 of the principal enactment is hereby
section 159 of amended in subsection (1) of that section, by the substitution
the principal
enactment. for the words “and shall furnish a return on monthly basis,
containing such particulars as may be specified by the
Commissioner-General in relation to such activity.”, of the
words and figures,
“and shall furnish a return:
(a) on a monthly basis, for any year of assessment
commencing prior to April 1, 2015 ; and
(b) on a quarterly basis, for any year of assessment
commencing on or after April 1, 2015,
containing such particulars as may be specified by
the Commissioner-General in relation to such
activity.”.
Amendment of 35. Section 163 of the principal enactment as last
section 163 of amended by the Act, No. 8 of 2014 is hereby further amended
the principal
enactment. in subsection (5) of that section by the repeal of the first
proviso to that subsection and substitution therefor, of the
following proviso:-
Inland Revenue (Amendment) 39
Act, No. 9 of 2015
“Provided, that nothing in this subsection shall apply to
the assessment of income tax payable by any person in respect
of any year of assessment, consequent to-
(i) the receipt by such person of any arrears relating to
the profits from employment of that person for that
year of assessment;
(ii) any adjustment made in line with the adoption of
the Sri Lanka Financial Reporting Standards for the
year of assessment in which such adoption was
made; or
(iii) any profits and income or the loss ascertained in
accordance with the provisions referred to in
section 104 or section 104A, as the case may be, for
any year of assessment commencing on or after
April 1, 2013, for any period before the expiry of five
years from the date of receipt of such return, where
the Commissioner General is in the opinion that:
(A) the profits and income or the loss referred
to in section 104, of any person, has not
been ascertained having regard to the arm’s
length price, and issue of such assessment
is not contrary to any provision of an
agreement in force for the relief of double
taxation between the Government of Sri
Lanka and the Government of any territory
in which such person is resident; or
(B) the profits and income or the loss referred
to in section 104A, of any person, has not
been ascertained having regard to the arm’s
length price:”.
36. Section 212 of the principal enactment as last Amendment of
amended by the Act, No. 8 of 2014 is hereby further amended section 212 of
the principal
in subsection (2) of that section as follows:-
enactment.
40 Inland Revenue (Amendment)
Act, No. 9 of 2015
(1) by the substitution in the paragraph (e) of that
subsection for the words “Sri Lanka are changed.”,
of the words “Sri Lanka are changed;”; and
(2) by the addition immediately after paragraph (e) of
that subsection, of the following new paragraphs:-
“(f) guidelines for the calculation of qualifying
payment relating to cost of acquisition or
merger of any bank, financial institution or
leasing company and the continuation of
tax neutral position after acquisition,
merger or amalgamation, as the case may
be, for the purpose of this Act and other
Acts administered by the Commissioner-
General.;
(g) rules and guidelines for the implementation
of the use of electronic communication or
electronic records with regard to the Acts
administered by the Commissioner-General
from time to time as required.”.
Amendment of 37. The Second Scheduleto the principal enactment as
the Second last amended by Act, No. 8 of 2014 is hereby further amended
Schedule to the as follows:-
principal
enactment.
(1) by the substitution in item (3) of PART-A of that
Schedule, for the words “Any unit trust management
company on the taxable income-”, of the words “Any
unit trust management company on the taxable
income from the management of any unit trust-”;
(2) by the substitution in item (1) (c ) of PART-B of that
Schedule, for the words and figures ,
“For any year of assessment commencing on or
after April 1, 2011 –
Any company other than any company engaged in
the manufacture of any article or in the provision of
any services –”, of the words and figures
Inland Revenue (Amendment) 41
Act, No. 9 of 2015
“For any year of assessment commencing on or
after April 1, 2011, but prior to April 1, 2014 –
Any Company –”;
(3) by the substitution in item (d) of PART–B of that
Schedule, for the words and figures ,
“For any year of assessment commencing on or
after April 1, 2011, but prior to April 1, 2014 –
any company engaged in the manufacture
of any article or in the provision of any
service-”, of the words and figures
“For any year of assessment commencing on or
after April 1, 2014-
any company other than any company
engaged in the manufacture of any article or
in the provision of any service-”.
38. The Fourth Schedule to the principal enactment is Amendment of
hereby amended as follows:— the Fourth
Schedule to the
principal
(1) in the heading of that Schedule, by the substitution enactment.
for the words “Royalty or Annuity”, of the words
“Royalty, Annuity or Fees for Technical Services”;
and
(2) in that Schedule, by the substitution for the words
“royalty or annuity”, of the words “royalty, annuity
or fees for technical services”.
39. The Fifth Schedule to the principal enactment as last Amendment of
amended by Act, No. 8 of 2014 is hereby further amended by the Fifth
Schedule to the
the repeal of item 46 thereof.
principal
enactment.
42 Inland Revenue (Amendment)
Act, No. 9 of 2015
Validation. 40. The amount of tax charged or collected from any
person by or on behalf of the Commissioner-General, by virtue
of the application of any provision of this Act, during the
period commencing on April 1, 2015 and ending on the date
on which the certificate of the Speaker is endorsed in respect
of this Act, shall be deemed for all purposes to have been
validly and lawfully charged or collected under this Act by
the Commissioner-General or by such person who charged
or collected such tax on behalf of the Commissioner-General:
Provided that, the aforesaid provision shall not affect any
decision or order made by any Court or any proceedings
pending in any Court in respect of any tax charged or collected
during such period.
Sinhala text 41. In the event of any inconsistency between the
to prevail in Sinhala and Tamil text of this Act, the Sinhala text shall
case of
inconsistency. prevail.

Inland Revenue (Amendment) 43
Act, No. 9 of 2015
Annual subscription of English Bills and Acts of the Parliament Rs. 885 (Local), Rs. 1,180
(Foreign), Payable to the SUPERINTENDENT, GOVERNMENT PUBLICATIONS BUREAU, DEPARTMENT OF
GOVERNMENT INFORMATION, NO. 163, KIRULAPONA MAWATHA, POLHENGODA, COLOMBO 05 before 15th
December each year in respect of the year following.
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