Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof):
- Sri Lanka tax payable under the law of Sri Lanka and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within Sri Lanka (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits income or chargeable gains by reference to which the Sri Lanka tax is computed.
- In the case of a dividend paid by a company which is a resident of Sri Lanka to a company which is a resident of the United Kingdom and which controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividend, the credit shall take into account (in addition to Sri Lanka tax creditable under the provisions of sub-paragraph (a) of this paragraph) the Sri Lanka tax payable by the company in respect of the profits out of which such dividend is paid.
Subject to the provisions of the law of Sri Lanka regarding the allowance as a credit against Sri Lanka tax of tax payable in a territory outside Sri Lanka (which shall not affect the general principle hereof):
- United Kingdom tax payable under the laws of the United Kingdom and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within the United Kingdom (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any Sri Lanka tax computed by reference to the same profits, income or chargeable gains by reference to which the United Kingdom tax is computed.
- In the case of a dividend paid by a company which is a resident of the United Kingdom to a company which is a resident of Sri Lanka and which controls directly or indirectly at least 10 per cent of the voting power in the United Kingdom company, the credit shall take into account (in addition to any United Kingdom tax creditable under the provisions of sub-paragraph (a) of this paragraph) the United Kingdom tax payable by the company in respect of the profits out of which such dividend is paid.
Where under any provision of this Convention income is relieved from Sri Lanka tax, and, under the law in force in the United Kingdom, an individual in respect of the said income is subject to tax by reference to the amount thereof which is remitted to or received in the United Kingdom and not by reference to the full amount thereof, then the relief to be allowed under this Convention in Sri Lanka shall apply only to so much of the income as is remitted to or received in the United Kingdom.
Last Updated on: 19-05-2010
