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Zambia legislation

Excess Expenditure Appropriation (1985) Act, 1988

This provision amends the definition of “manufacturing” by replacing “change” with “changes.” Section 17 of the principal Act is amended so that paragraph (g) is replaced with “income from the letting of property.”…

amendmentcapital allowancescharge yeardeductionsfarm income valuationforeign currency exchange gains/lossesforeign debt or liabilityincome taxincome tax allowance deductionincome tax amendmentincome tax schedule amendmentslivestock valuationmanufacturing investmentministerial approvalpercentage thresholdsstatutory amendmentstatutory interpretationTax lawtax exemptions

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01

Purpose and legislative effect

“This provision amends the definition of “manufacturing” by replacing “change” with “changes.””

This provision amends the definition of “manufacturing” by replacing “change” with “changes.” Section 17 of the principal Act is amended so that paragraph (g) is replaced with “income from the letting of property.” Section 21 of the principal Act is amended, including a change from 10,000 kwacha to 20,000 kwacha and a maximum period of five years. This provision amends the principal Act by inserting a new section after section 29. Foreign currency exchange gains or losses, except capital gains or losses, are taxed or deducted in the charge year when they are realised.

02

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Sectionforty-rme of the principal Act is amended

This provision amends tax rules: it lets the Minister withdraw an approval, including retrospectively, changes a percentage from 10% to 15%, adds a further reference in the proviso, and limits a deduction where specified housing allowance and election…

Section 9

A married allowance shall be deductible

A claimant may deduct a married allowance if they live with their spouse during the charge year, and it is normally split equally between spouses.

Section 2

04

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Source record from zambialii.org · Source version 22 Apr 1988

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Showing 16 of 16 provisions

Substitution 9Repeal 4Amendment 3
§ 2Section two of the principal Act is amended in subsectionSubstitution

This provision amends the definition of “manufacturing” by replacing “change” with “changes.”

2. Section two of the principal Act is amended in subsection (I) by the deletion in the definition of "manufacturing" of " change, " and the substitution therefor of " changes ".
§ 3Section seventeen of the principal Act is amended by theSubstitution

Section 17 of the principal Act is amended so that paragraph (g) is replaced with “income from the letting of property.”

3. Section seventeen of the principal Act is amended by the deletion of paragraph (g) and the substitution therefor of the following: 8irigle '°Piee of this Act may be obtained from thlJ Government .Printer,,. P.O. Bo,c 30136, L,,,aka. Pri<s 40n. Amondment of section 2 Ami,ndmont of sootion 17 , .60 No. -14 of-1987]- Income Tax (Amendment) (g) income from the letting of property;. Amendment of aoction 21
§ 4Section twenty-one of the principal Act is amendedSubstitution

Section 21 of the principal Act is amended, including a change from 10,000 kwacha to 20,000 kwacha and a maximum period of five years.

4. Section twenty-one of the principal Act is amended- (i) in subsection (5) by the deletion of "per annum" and the substitution therefor of "per annum, for an equivalent maximum period of five years, "; (ii) in the proviso by the deletion of " ten thousand kwacha " and the substitution therefor of " twenty thousand kwacha ". Insertion of new section 29A
§ 5The principal Act is amended ,by the insertion sifterAmendment

This provision amends the principal Act by inserting a new section after section 29.

5. The principal Act is amended ,by the insertion sifter section twenty-nine of the following new section:
§ 29A,Notwithstanding the provisions of section twenty­Amendment

Foreign currency exchange gains or losses, except capital gains or losses, are taxed or deducted in the charge year when they are realised.

29A.,Notwithstanding the provisions of section twenty­ nine · or any other provisions of this Act, any foreign currency exchange gains or losses, other than those of a ·capital nature, shall be assessable or deductible, as the case may be, in· the charge year in which such gahi.s or losses are realised, that is .to say, in the charge year in which the person or partnership concerned is required to pay the additional kwacha or is allowed a rebate or a reduction, as the case may be, in settlement of a foreign debt or liability. · ' · Amendment of section 31
Section 29AVerify source
§ 6'Section· thirty-one of the principal Act· is amended by theAmendment

This provision amends section 31 of the principal Act by deleting the words “from income or” where they first appear.

6. 'Section· thirty-one of the principal Act· is amended by the deletion of the words " from income or " where they first appe_ar. Amendment of section 34
§ 7Section thirtyjour of the principal Act is amended by theSubstitution

Manufacturers may deduct an investment allowance equal to 20% of qualifying capital expenditure on new or unused implements, machinery, or plant, excluding road-use motor vehicles.

7. Section thirtyjour of the principal Act is amended by the deletion of subsection (2) and the substitution therefpr, of the following: (2) Where a person incurs capital expenditure on the purchase of any new or unused implement, machinery or plant, other than motor vehicles intended for use or capable of being used on roads, to be used by him in his business as a manufacturer, an investment allowance of · twenty per centum of such expenditure shall be deducted in ascertaining the gains or profits of that business for the charge y�ar in which the said implement, machinery or plant is first used in any manufacturing process in the · · · · ·manufacturing business.
§ 8Section thirty-seven of the principal Act is amended- 'Substitution

Section 37 is amended to replace several 10% and 15% figures with 15% and 20% figures in specified paragraphs.

8. Section thirty-seven of the principal Act is amended- ' , ... . I (ai in �:ubsection, (i) by the:__ . . . ' ' ' · , (i) deletion in sub-regulation (1) of paragraph (c) of "ten per centum " and the substitution therefor of ""fifteen per centum "; · · · (ii) deletion in paragraph (cl) of" ten.per centum" and the .substitution therefor. of "fifteen -per centum ";and · · · · Amendment ,of .ise.c�i�n ,37 ' ,- l ., . ' lnwmeTax· (Amendment) [No. 14 of 1987 61: (ill) deletion in paragraph (e) of " ten per centum " and the substitution therefor of " fifteen per centum "; and (b) in subsection (2) by the deleti011. in paragraph (c) of · " fifteen per centum " and the substitution therefor of" twenty per centum ".
§ 9Sectionforty-rme of the principal Act is amendedSubstitution

This provision amends tax rules: it lets the Minister withdraw an approval, including retrospectively, changes a percentage from 10% to 15%, adds a further reference in the proviso, and limits a deduction where specified housing allowance and election conditions are met.

9. Sectionforty-rme of the principal Act is amended- , (a) in paragraph (c) of subsection (1) by the addition after " is made or is to be made " of " and the Minister may in like manner withdraw such approval and such withdrawal may be made retrospectively "; Amendment of section 41 (b) in subsection (2)- . . (i) by the· deletion of " ten per centtim " and, the substitution therefor of " fifteen per centum "; i,- , 1 · and � · (ii) i;i the proviso by the insertion , imme<;li'\tely - after the " Republic " of " or for the construc­ tion in Lusaka of the Headquarters of the . United lfational Indepep,dence Party ". \ 10, Section-forty-three O of the principal Aot is amended by the deletion of subsection ( 5) and the substitution therefor of the following: ' ' ' (5) No deduction shall be allowed under subsection (1) if the individual, or his wife living with him in a 'cnarge year, is in receipt of an owneraoccupied housing allowance payable to an employee or office holder, and such indivi­ dual has irrevocably elected for such charge year the exemption under sub-paragraph (v), of paragraph 7 of the Second Schedule.
§ 11Section forty-four of the principal Act is amended inSubstitution

The text amends tax rules by replacing K5.00 with K20.00, and adds or restates exceptions about when a right of election does not apply and when section 82A does not apply to certain interest payments.

11. Section forty-four of the principal Act is amended in proviso (ill) to paragraph (h) by the deletion of "K5.00" and the substitution therefor of" K20.00 ". . 12. ,S�ction sixty-two A, of the principal Act is amended by the, d�Jetion of the proviso and the suJ?stitut�on therefor of the following :i · · • · · · · , Amendment of section 430 Amendment of section 44: Amendment of section 62A Provided that there shall .be no right· of �lection under this. section where an _electiop, has already-been made unq.er this· section in respect of cine of' two consecutive charge years in respect of the same income or loss. · , . : , 1�. Section eighty,two A of the principal Act �- amended in subsection (1) by the- Amendment ofseotion 82A (i) deletion_ of paragraph (d) and the re-numbering of the ; . existing (e) as (d); and " - 62 �o. 14 of 1987] Income Tax (Amendment) (ii) deletion of the proviso thereof and the substitution therefor of the following new proviso : Provided that the provisions of this section shall not apply- (i) to interest payable to an individual or persons in partnership, not resident in the Republic; and (ii) to interest payable on a bill of exchange drawn for one hundred and eighty days or less. Amendment of Sooond Schedule
Section 11Verify source

Part

Schedule

§ 14(I) The Second Schedule to the principal Act is amendedSubstitution

This section amends the Second Schedule to the principal Act and adds or changes entries, including an exemption for certain interest income received by a resident individual.

14. (I) The Second Schedule to the principal Act is amended in sub-paragraph (5) by the insertion after sub-paragraph (c) of the following new sub-paragraph: (d) the Zambia National Holdings Limited; . (2) The Second Schedule to the pdncipal Act is amended in . paragraph 7- (a) by the deletion of sub-paragraph (m) and the sub stitution therefor of the following: (m) by way of inducement allowance, as defined in subsection (I) of section two, payable by an employer to an expatriate employee, or by · way of an inducement allowance or gratuity paid by the British Government to public officers; (b) by� (i) the deletion in sub-paragraph (v) of the semi­ colon at the end and the substitution therefor of a comma; and (ii) the addition of: Provided the employee irrevocably elects in respect of any charge year at least three months before the and of the charge year to which such election relates, and makes a claim in that behalf. (c) by the addition after "service " of " , Party service, the office of Attorney-General, the office of Clerk of the National Assembly or an office in the Clerk's department where such office is held on permanent and pensionable terms. (3) The Second Schedule to the principal Act is amended . in paragraph 9- (a) by the deletion- (i) in sub-paragraph (b) of sub-paragraph (4), o f " up to the first five hundred kwacha, " (ii) of the full stop at the end of the sub-paragraph and the substitution therefor of "; and "; and Income Tax (Amendment) [No. 14 of 1987 63 (b) by the addition after sub-paragraph (b) of the following sub-paragraph: (o) interest earned on any sum deposited or invested in a savings or deposit account with any building society or commercial bank registered outside the Republic shall, if received by an individual resident in the Republic, be exempt.
Section 14Verify source
§ 15The Fifth Schedule to the principal Act is amended inRepeal

This section amends paragraph 21(4) of the Fifth Schedule by replacing a colon with a full stop and deleting the proviso.

15. The Fifth Schedule to the principal Act is amended in sub-paragraph (4) of paragraph 21- (a) by the deletion of the colon immediately preceding the proviso and the substitution therefor of a full stop; and Amondment ofFifth Sohodulo (b) by the repeal of the proviso.
Section 15Verify source
§ 16The Sixth Schedule to the principal ActRepeal

This section amends the Sixth Schedule by changing the amount in the definition of “farm dwelling” from eight thousand kwacha to twenty thousand kwacha.

16. The Sixth Schedule to the principal Act-- (a) is amended in paragraph I by the deletion in the definition of " farm dwelling " of " eight thousand kwacha " and the substitution therefor of "twenty thousand kwacha " ; (b) amended by the repeal of paragraph 7 and the sub­ stitution therefor of the following: Amendment of Sixth Sohodule
Section 16Verify source
§ 7In ascertaining a farmer's gains or profits, theRepeal

For a farmer's gains or profits, livestock value is taken as the lower of market value or the farmer's cost.

7. In ascertaining a farmer's gains or profits, the value of his livestock, including livestock bought by him for stud, is the market value or the cost to the farmer of the livestock, whichever is the lower. "; and (c) amended by the repeal of paragraphs 8 and 9; (d) amended by the re-numbering of the existing para­ graph IO as paragraph 8.
§ 17The Charging Schedule to the principal Act isRepeal

This section amends the Charging Schedule to the principal Act, including a new time limit for making a return and claim.

17. The Charging Schedule to the principal Act is- (a) amended in paragraph 1 by the deletion of proviso (ii) and the substitution therefor of the following: Amondmont ofOharging Sohedule (ii) such return and claim is made not later than six years after the end of the charge year to which it relates or, if later, six years after the date of service of a notice of assessment for that charge year; (b) amended by the repeal of paragraph 2 and the substi­ tution therefor of the following:
Section 17Verify source
§ 2A married allowance shall be deductibleSubstitution

A claimant may deduct a married allowance if they live with their spouse during the charge year, and it is normally split equally between spouses.

2. A married allowance shall be deductible where the claimant lives with his spouse at any time during the charge year, and such married allowance shall be equally apportioned between the spouses, unless the cla.ima.nt proves that his spouse is, for the relevant charge year, not in receipt of earned income in which case the allowance deducti­ ble from the claimant's income under this paragraph 64 No; 14 of.1987], Income Ta,,; (Amendment) _ . . shall not e:S:ceed sixty per centum of the allo-/vance due under this paragraph.; '. ·,.(c)''ainended by the repealofparagraph 3; . __ (d) amended.in paJagraph5- · · . (i) by: the deletion of the full stop and the substi­ tution therefor of a colon; (ii) by the addition of the following proviso to sub-regulation (1): Provided that in the case of - a child, to•· whom an individual stii.nds in place. of a parent, child allowance shall only be deductible commencing from the cho.rge year in which the .claim is made to .the Commissioner.; ·· · · - . ,. . ··- . (iii) amended_ .. by ,the insertion immediately after sub-paragr'°ph (1) of the following: - (2) The individual entitled to _ a child allowance under this paragraph may, by notice in writing to the Commissioner, elect to apportion the child allowance for ·,my charge year: .. Provided that- (i) such notice shall- (a) be signed by both spouses or claimants; , (b) specify the proportion or amounts in which the child allowance is to be appor­ tioned; (c) be irrevocable in respect of the charge year for which it is made; and (d) be received by the Com­ missioner not • later than three months before the com­ mencement of the charge year to which it relates; · · • (ii) for a child born during a charge year, such notice shall be given not later than three months before the end of the charge year in which the child is born; (e) by the re-numbering of the existing sub-pragraphs (2), (3) and (4) as (3), (4) and (5). (f) an:i�nd�d in paragraph 6- : . .. . . .. (a) by the deletion in sub-paragraph (b) of sub­ . , . _ paragraph. (1) .of "·any.part" .and the substi- lncomeT= (Amendment) [No. 14 of 1987 65 tution therefor of " an equivalent amount "; and (b) by the deletion of sub-paragraph (2) and the substitution therefor of the following: (2) Where an insurance premium is· paid by a wife on her own life or on the life of her husband or her minorichild, she shall be deemed to be the claimant for the purposes of this paragraph and the provisions of paragraph 9 of this Schedule shall be construed accordingly. (g) amended- (i) by the insertion in Annexure " A " of the following additional Table: Table 12: With effect from 1st.April, 1987 (a) Married Allowance under paragraph 2 (subject to apportionment) (b) Single Allowance under paragraph 4 (c) Child Allowance under paragraph 5 (subject to apportionment) (d) Insurance Allowance under paragraph 6 (e) Handicapped Person's Allowance under paragraph SA (ii) by the insertion in Annexure "C" of the following Table: Table 9: With effectfr<>m l•t April, 1986 Manufacturing company on manufacturing Others income from 4,600 1,800 330 the amount of premium up to a maximum of 800 600 Rate per centum 35 45 SCHEDULE (Bedion I (2)) PART I Seotion 7 Sections 14 (2) (a) and (b) and 17 (g) (U) PAR\l?II PART ill Sections 4 and 14 (2) (o) 66

Legislative relationships

3 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

1 instrument

  • Charging Schedule to the principal Act

    Section 17

N–S

2 instruments

  • principal Act

    Sections 5, 6
  • Second Schedule to the principal Act

    Section 14

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  • 22 Apr 1988 · currentEnglish

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