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Section No :  
Acts & Ordinances
INLAND REVENUE
Marginal Notes
1. This Act may be cited as the Inland Revenue Act, No. 10 of 2006.
2. Imposition of income tax.
3. Income chargeable with Tax.
4. Profits from employment.
5. Net annual value of land and improvements thereon or of any place of residence.
6. Profits or income arising from rents of land and improvements thereon.
7. Exemptions from income tax of certain persons (other than individuals) on the whole or any part of their profits and income.
8. Exemption from income tax of certain profits and income of certain officers and employees.
9. Exemption from income tax of certain interest received.
10. Exemption from income tax of certain dividends.
11. Exemption from income tax of certain profits and income from lands and improvements thereon.
12. Exemption from income tax of certain subsidies.
13. Miscellaneous exemptions from income tax.
14. Exemption of certain profits and income of any resident guest.
15. Exemptions of profits and income derived from outside Sri Lanka.
16. Exemption from income tax of profits and income from agricultural undertaking.
17. Exemption from income tax of the profits and income of any company from any specified undertaking.
18. Exemption from income tax of certain undertakings for infrastructure development.
19. Exemption from income tax of small scale infrastructure undertakings.
20. Exemption of the profit and income of any new industrial undertaking.
21. Exemption of profits and income of any relocated undertaking.
22. Exemption from income tax of any company engaged in research and development.
23. Exemption from income tax of any venture capital company.
24. Exemption from income tax of any person engaged in the business of providing Manor Houses or Thematic Bungalows to tourists.
25. Deductions allowed in ascertaining profits and income.
26. Deductions not allowed in ascertaining profits and income.
27. Deduction of head office expenses incurred by any non resident company.
28. Basis for computing statutory income.
29. Apportionment of profits.
30. Total statutory income.
31. Aggregation of the total statutory income of a child with that of his parent.
32. Deductions from total statutory income in arriving at assessable income.
33. Taxable Income.
34. An allowance in respect of qualifying payments.
35. Rates of income tax on persons other than companies.
36. Special provision relating to taxation of interest on compensation payable in respect of property vested in the Government, the Land Reform Commission or a public corporation or a local authority.
37. Deduction of income tax from interest payable on certain deposit accounts.
38. Rates of income tax on the gross interest on loans granted by a company, partnership or other body of persons outside Sri Lanka.
39. The rate of income tax on royalty payable to any company partnership or other body of persons outside Sri Lanka.
40. The rate of income tax on profits from employment, for a specified period of a non-citizen employed in Sri Lanka.
41. Rate of income tax on profits and income of any foreign currency banking unit arising from any off-shore foreign currency transaction.
42. Rate of income tax on profits and income arising in Sri Lanka to the consignor or consignee from certain exports.
43. Rate of income tax on profits and income arising from certain undertaking approved by Minister.
44. Rate of income tax on sale of any share or a warrant.
45. Rates of income tax on profits from certain undertakings carried on by a person other than a company.
46. Rate of income tax on profits from certain undertakings carried on by a company.
47. Rate of income tax applicable to specialized housing banks.
48. Rate of income tax applicable to certain companies after the expiry of tax exemption.
49. Rate of income tax on dividends paid out of profits taxed in accordance with section 46.
50. Rate of income tax on qualified export profits and income of person not being a company, who commenced to carry on any specified undertaking.
51. Rate of income tax on qualified export profits and income of a company which commenced to carry on any specified undertaking.
52. Rate of income tax on qualified export profits and income of a company which carries on any specified undertaking.
53. Rate of income tax on dividends out of exports profits and income.
54. Rate of income tax on certain dividends.
55. Rate of income tax on dividend received from outside Sri Lanka.
56. Rate of income tax on deemed exports of any person or partnership.
57. Rate of income tax on profits and income from services rendered outside Sri Lanka by any resident company or partnership.
58. Rate of tax on profits and income from the supply of certain services to garment exporters.
59. Rate of tax on profits from transshipment agency fees.
60. Interpretation.
61. Income tax to which any resident company is liable.
62. Income tax to which any non-resident company is liable.
63. Certain dividends not to form part of the assessable income of the receiving company.
64. Profits of a company from transactions with its shareholders.
65. Resident company entitled to deduct tax from any dividend.
66. Certain undistributed profits to be treated as distributed.
67. Provisions applicable where the profits and income of a company are appropriated by the director & c. of that company.
68. Provisions of this Chapter not to apply to charitable institutions etc.
69. Assessment of child's income.
70. Returns to be furnished by receiver and trustee and their liability to tax.
71. Chargeability to tax of trustee of an incapacitated person.
72. Liability of executor to tax payable by deceased person.
73. Return to be furnished by executor and chargeability of an executor and beneficiary.
74. Joint trustees and executors.
75. Every unit trust deemed to be a company.
76. Assessment of partnership income.
77. Assessment to be made in the name of the partnership in certain circumstances.
78. Tax chargeable on partnerships.
79. What constitutes residence.
80. Chargeability of certain profits of non resident persons.
81. Persons assessable on behalf of a non-resident person.
82. Liability of certain non- resident persons.
83. Profits of certain businesses to be computed as a percentage of the receipts.
84. Profits of non-resident person from sale of exported produce.
85. Liability to income tax of certain profits of non-resident person.
86. Exemption from income tax of non-resident persons in certain cases and liability of certain non-resident persons to income tax at reduced rates.
87. Profits of non-resident shipowners or charterers.
88. Master of ship to be an agent.
89. Refusal of clearance for ship where income tax is in arrears.
90. Profits of non-resident owners or charterers of aircraft.
91. Application of subsection (2) of section 87, section 88, and section 89, to profits of non-resident owners or charterers of any aircraft.
92. Ascertainment of profits of insurance companies.
93. Interest on certain loans deemed to be profits and income.
94. Certain royalties deemed to be profits and income.
95. Deduction of income tax from interest, & c, payable to persons outside Sri Lanka.
96. Deduction of income tax from payment made to any foreign entertainer or artiste.
97. Effect of agreements for double taxation relief.
98. Relief in respect of Sri Lanka income tax.
99. Applicability of provisions relating to particular sources of profits or income.
100. How certain receipts of insurance are to be treated.
101. Ascertainment of income of clubs, trade associations etc.
102. Profits and income of non governmental organisations to be chargeable with income tax .
103. Certain transactions and dispositions to be disregarded.
104. Profits and income or loss from transactions between associated undertakings to be determined having regard to the arm's lengthprice.
105. Ascertainment of profits and income from business of petroleum exploitation under a Petroleum Resources Agreement.
106. Returns and information to be furnished.
107. Audit reports to be furnished by partners etc.
108. Returns and other documents to contain the national identity card number or passport number.
109. Returns to be furnished of income received on account of or paid to other persons.
110. Occupiers to furnish returns of rent payable.
111. Return of lodgers and inmates.
112. Power of Commissioner-General to impose penalty for failure to furnish return.
113. Payment of tax by self assessment.
114. Employers to deduct income tax.
115. Employers to give notice to Commissioner - General.
116. Application of income tax tables.
117. Deduction of tax at special rates.
118. Directions to employers.
119. Employers to maintain proper records.
120. Duties of employer following deduction of income tax.
121. Adjustments of amount of income tax not paid or paid in excess.
122. Employee to give notice when necessary deductions are not made.
123. Income tax deducted not to form part of assets of employers.
124. Default in the deduction or payment of income tax.
125. Issue of assessments on employers.
126. Appeals.
127. Penalty for default.
128. Penalty on default.
129. Credit for tax paid.
130. Compliance with the provisions of this Chapter relating to forms.
131. Interpretation.
132. Payment of income tax by a Government institution of its employees.
133. Banks and financial institutions to deduct income tax.
134. Deducting tax from interest on securities, treasury bonds etc,.
135. Companies issuing corporate debt securities to deduct income tax.
136. Credit for tax deducted.
137. A notional tax credit on secondary market transactions
138. Refund of income tax paid on interest liable to withholding tax.
139. Issue of directions where deductions are made under sections 133 or 136.
140. Duties of bank and financial institution following deductions of income tax.
141. Penalty for tax avoidance.
142. Default in the deduction of income tax .
143. Issue of assessments on banks and financial institutions.
144. Appeals.
145. Penalty for default.
146. Penalty and interest on default.
147. Interpretation.
148. Person or Partnership chargeable with income tax.
149. Registred co-operative societies deemed to be companies.
150. Registration of banks and financial institutions.
151. Registration of specified persons.
152. Registration of persons liable to deduct tax from rent, lease rent or other similar payments.
153. Specified persons to deduct income tax from specified fees.
154. Provisions of Chapter XVI to apply in relation to the deduction under this Chapter of income tax from specified fees.
155. Persons paying rent, lease rent etc. to deduct income tax.
156. Application of the provisions of Chapter XVI to this Chapter.
157. Government institution paying rewards or fines or other person or partnership paying lottery prizes etc. to deduct income tax.
158. Provisions of Chapter XVI to apply in relation to any deduction under this Chapter.
159. Registration of persons conducting lotteries or betting or gambling activities.
160. Persons paying annuity, royalty, management fee or similar payment to deduct income tax.
161. Application of the provisions of Chapter XVI to this Chapter.
162. Retention of fifteen per centum of moneys lying to the credit of a contributor to a specified provident fund, to meet any tax payable.
163. Assessments and additional assessments.
164. Notice of Assessment.
165. Appeals to the Commissioner-General.
166. Constitution of the Board of Review.
167. Appeals to the Board of Review.
168. Commissioner-General may refer appeals to the Board of Review.
169. Hearing and determination of appeals by the Board of Review.
170. Appeal on a question of law to the Court of Appeal.
171. Assessments or amended assessments to be final.
172. Penalty for incorrect return.
173. Tax in default and sums added thereto.
174. Punishment for tax in default.
175. Tax to include fines etc.
176. Tax to be a first charge.
177. Notice to defaulter.
178. Recovery of tax by seizure and sale.
179. Proceedings for recovery before Magistrate.
180. Recovery of tax out of debts & c.
181. Transfer of immovable property to Government in lieu of payment of tax in cash.
182. Tax in default to be recovered from remuneration of employee.
183. Tax in default of partner to be recovered from the assets of a partnership.
184. Recovery of income tax from the income of a child.
185. Recovery of income tax payable by a beneficiary from the trustee.
186. Recovery of income tax payable by a beneficiary from the executor.
187. Gift tax to be recovered from the donee in certain circumstances.
188. Recovery of tax from persons leaving Sri Lanka.
189. Use of more than one means of recovery.
190. Power of Commissioner-General to obtain information for the recovery of tax
191. Liability of directors of private company in liquidation.
192. Delegation of Commissioner- General's powers and functions.
193. Action not to commence after expiry of five years in certain circumstances.
194. Signature and service of notice.
195. Validity of notices, assessments etc.
196. Precedent partner to act on behalf of a partnership.
197. Principal officer to act on behalf of company or body of persons.
198. Who may act for incapacitated or non-resident person.
199. Indemnification of representative.
200. Tax paid in excess to be refunded.
201. Interest payable on the amount of a refund in certain circumstances.
202. Penalties for failure to make returns making incorrect returns &c.
203. Breach of secrecy and other matters to be offences.
204. Penal provisions relating to fraud &c.
205. Tax to be payable notwithstanding any prosecution or conviction for an offence under this Act.
206. Prosecution to be with the sanction of the Commissioner- General.
207. Admissibility of statements and documents in evidence.
208. Officers.
209. Official Secrecy.
210. Inland Revenue Incentive Fund
211. Commissioner- General may pay rewards to informants.
212. Regulations.
213. Forms.
214. Power to search buildings or places.
215. Power to search business premises.
216. Sinhala text to prevail in case of inconsistency.
217. Interpretation.
218. Application of the Inland Revenue Act, No. 38 of 2000.