TRANSFER OF PROPERTY TAX ACT
Arrangement of Sections
1. Short title.
2. Charge of the tax.
3. Effect of the non-payment of the tax.
3A. Non-citizens to whom ownership of any land is transferred to sign a declaration in instrument of transfer.
4. Conditions for the registration of instruments relating to transfers of property.
5. Persons transferring-property between August 1, 1963 and the date of enactment of this Act to non-Sri Lankan liable to the tax.
6. Sums paid or recovered as the tax to be credited to the Consolidated Fund.
7. Proceedings for the recovery of tax due from persons liable under section 5.
9. This Act to prevail over other written law.
11 of 1963,
14 of 1982,
22 of 1992,
11 of 2002,
8 of 2004,
AN ACT to provide for the imposition of a Transfer of Property Tax for any year of assessment commencing on or after October, 1963; and to provide for matters connected therewith or incidental thereto.
[Date of Commencement: 21st December, 1963]
1. Short title.
This Act may be cited as the Transfer of Property Tax Act1.
2. Charge of the Tax.
(1) Subject to the provisions of subsection (4), where there is a transfer of ownership of any property in Sri Lanka to a person who is not a citizen of Sri Lanka, there shall be charged from the transferee of such property a tax of such amount as is equivalent to the value of that property.
(1A) No transfer of ownership of any property in Sri Lanka, shall be effected to a person who is not a citizen of Sri Lanka, below such value as shall be specified by the Minister of Finance by regulations made in that behalf, with the concurrence of the Minister of Lands and the Chief Valuer, taking into consideration the prevailing value of land in any Administrative District, Divisional Secretary's Division or Grama Niladhari Division as the case may be.
[S 2(1A) ins by s 4 of Act 8 of 2004.]
(2) The tax referred to in subsection (1) is hereinafter referred to as "the tax”.
(3) A person liable to the tax shall pay the tax to the Registrar of Lands of the district in which the land transferred is situated before the instrument by which the transfer of that land was effected presented for registration in accordance with the provisions of the Registration of Documents Ordinance.
[S 2(3) subs by s 2 of Act 22 of 1992.]
(3A) Where there is a transfer of ownership of any property within Sri Lanka to a company there shall be charged from the transferee of such property, a tax of such amount as is equivalent to the value of that property, if more than twenty five per centum of the issued shares in such company are owned by persons who are not citizens of Sri Lanka.
[S 2(3A) ins by s 4 of Act 8 of 2004.]
(4) The preceding provisions of this section shall not apply to—
(a) the transfer of any land to any commercial bank (within the meaning of the Monetary Law Act) or body of persons carrying on the business of insurance which is not a citizen of Sri Lanka arising out of the sale of such land to such bank or body of persons in execution of a decree of court to enforce the mortgage of such land whether before or after the date of operation of this Act as security for a loan or advance given by such bank or body of persons;
[S 2(4)(a) am by s 2 of Act 22 of 1992.]
(b) the sale of any land to any person who is not a citizen of Sri Lanka if it is proved to the satisfaction of the Registrar of Lands, who is responsible for the collection of the tax, that the negotiations for such sale had commenced before the date of operation of this Act, and the instrument for the transfer of ownership of such land was effected in consequence of such negotiations;
(c) the transfer of any land, to any commercial bank (within the meaning of the Monetary Law Act), or a company which is a nominee of such bank, in its capacity as trustee under any instrument whatsoever;
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