Income Tax (Amendment) Act, 2004

2. Section twelve of the principal Act is amended- (a) in paragraph"(a) of subsection (2) by"the insertion of the · words �• or electronically " after the word " personally; " . ·and (b) in paragraph (a) of subsection (5)by the insertion of a ·comma and the word" electronically" after the word "personally".

3. Secticin-sixty-fourA of the principal Act is amended- (a) in subsection (1) by the insertion of the words" Part I of" after the words-'! as set out in "; and (/,) by the insertion immediately after subsection (1) of the following new subsection: Amendment of section 12 . Amendment of seetiOn 64A (2) The Comnrlssioner:Gerieral may make a stajulard asses�i:nt requiring· any person carrying· on any business, lither than the ·bµsiness referred to in subsection (!), with an annual turnover of two hundred million kwacha or less to pay tax on tum over at the rate set out in Part II of the Ninth Schedule. Single copies of this Act can be obtained.from the Government Printer. P.O. Box 30136, JOJO/ L�akll. PriceK/500each 2 No. 1 of 2004) Income Tax (Amendment) Amendment of section 79

4. Section seventy-nine of the principal Act is amended by the insertion immediately" after subsection ( 1) of the following new subsection: (2) Notwithstanding the other provisions of this Act, where tax is found to be owing to the Republic under this Act the Commissioner-General may, by notice in writing issued to any individual or person, fix a date for, the payment of such tax: . ' . Provided that where paymenfofthe tax referred to in · this section is to be made by instalment�, the Commissioner-General may set different dates for .the payment of such tax. · ' , 's Am!'Ddment of section 82A

5. Sec;tion eighty-hvoA of the principal Act is amended in subsection (1) by the deletion in paragraph (i) of the proviso to . paragraph (b) of the words " twenty-five thousand kwacha " and the .substitution therefor of the words• .. sixty-two thousand five hundred kwacha: " ' · Amendment of Second Schedule ' Interest on treasury bills, etc received by charitable institution subjectto withholding tax Cap.354

6. The Second Schedule to the principal Act is amended- (a) by the deletion of paragraph 6A and the substitution therefor of the following paragraph:

6A. (1) Notwithstanding the provisions of subparagraph (1) of paragraph 5 and.·subparagraph (1) of paragraph 6, or any other provisions of this Act, any interest on treasury bills, government bonds, corporate bonds or any :tinancial.instrumelit or securities received by any charitable institution, body, person or trust referred to in those subparagraphs, · shall be subject to withholding tax under section . eighty-twoA. (2) In this paragraph " securities " has the meaning assigned to it by. section two of the Securities Act. . ,, (b) in subparagraphs (4) and(S) ofparagraph9 by the deletion _ .-.. . of the words " three hundred thousand " and the ' ,.- ·. substitution'therefor ofthe words".seve1i'hundred fifty .,· '.,, · tlioii'siind ". · .. · . : 7. TheFo�Schedµletot!J,eprincip�lf\�t is"�erided in clause (b) of subparagraph (2).of paragraph 2 by the deletion of subclause (i) and the substitution therefor of the following subclause: · · Amendment ofFou.-th Schedule Income Tax (Amendment) _[No. 1 of2004 , 3 ---------------------- :✓ (i) provide for the payment to any employee during the employee's life of any suin except a pension which may, subject to this paragraph, be commuted or, in the event of the employee leaving the service of the employee's employer in circumstances in which no pension is payable to the employee, any contributions to-- (a) a defined contributory fund or scheme made by the employee and the employee's employer together· with reasonable interest; or (b) a defined benefit fund or scheme made by the employee and the employee's employer together with reasonable interest;.

8. The Sixth Schedule to the principal Act is amended in paragraph 1 by the deletion in the definition of" farm dwelling" of the words" five million·kwliclia·" a:nd the substitution therefor of the words-I' ten million kwacha ". · · 9. the principal Act is amended by the repeal of the Ninth Schedule and the substitution therefor of the Ninth Schedule set out in the Appendix to·this Act:

12- 17 seater Below 12 seater (including taxis) Amount of Tax Per Vehicle (Per annum) K7,200,00D.OO K6,000.00D.OO K4,800,000.00 K3,600,000.00 K2,400,000.00 K1,2oo',ooo.oo K600,000.00 PARTII TAX 0NTlJRN0�R , ,,,,,. T�rn�ver pei- annum· K200,000,000.00 and below Tax rate 3 percent

10. The Charging �chedule to the principal Act is amended- (a) in clause(a) of subparagraph (1) ofparagraph2- . . . . ' . ; . -, ._(i) b y the dtletion o_fthe seipi-colon after the word " annum " and the substitution therefor of a colon; and (ii) by the insertion after the colon of the following proviso: Provided that the refund of employer's contribution from a defined contributory pension fund or scheme shall be taiced in accordance with clauses (b), (c), (d), (e) and (j) of this subparagraph. (b) in subparagraph (i) ofp�agraph 2- (i) by the deletion in clause (c) of the words " one -million nine hundred twenty thousand" and the substitution therefor of the words" three million one hundred twenty thousand"; (ii)"by the deletion of clause ( d) and the substitution therefor of the following clause: Amendment­ of Sixth Schedule Repeal and replacement ofNinth Schedule Amendment ofCharging Schedule 4 No. 1 of 2004] Income Tax (Amendment) ( d) on the balance of. so much of an individual's income as exceeds three million one hundred twenty thousand kwacha but does not exceed eleven million seven hundred sixty thousand kwacha at the rate of thirty per centum per annum; and (iii) by �e insertion immediately after clause {d) of the following new clauses: (e) on the balance of so much of an· individual'.s income as exceeds eleven million seven hundred sixty thousand kwacha but does not exceed sixty million kwacha at the rate of thirty-five per centum per annum; and I -,, (j) on the balance of so. much of an individual's income as exceeds sixty million kwacha at the rate of forty per centum per annuDL (c) in subparagraph (1) of paragraph 3- (a) by the deletion of clause {a) and the substitution therefor of the following clause: {a) on the income of any company whose shares are listed on the Lusaka Stock Exchange in the first year of its listing at the rate of two per centum below the rates specified- (i) in clauses (b), (c), (d) and (e) of · this subparagraph; and (ii) in clauses (b}, {c) and (d) of paragraph 5: Provided that- A. any company whose shares were listed on tlie Lusaka Stock Exchange prior to 1st April, 2004 shall not qualify for the tax incentive referred to in this clause; and Income-Tax. (Amendment) [No. 'tof 2004 S R where any company, whose shares are listed on the Lusaka Stock Exchange on or after Isl April, 2004, offers and sells one third of its shares to indigenous Zambians, the income of that company sha!J be charged at an additional rate of five per centum below the rates specified-- (i) in clauses (b), (c), (d) and. (e) of the subparagraph; and (ii) in clauses (b), (c),and (d) of paragraph 5;. (b) by the deletion of clause (e) and the substitution therefor of the following clause: (e) on the income from mining operations of any former Zambia Consolidated CopperMiningCompany oranymining company carrying out mip.ing operations in copper and cobalt at the I rate of twenty-five per centum per annum. j ,. 6 No, .I of)004] Income, z::ax (Amendment) APPENDIX (Section 9) NINTI-ISCHEDULE (Section 64A) PRESUMPTIVE TAX PART! TAX ON MOTOR VEHICLES FOR 111B CARRIAGBOPPERSONS Type a/Vehicles (Sitting Capacity) 64 seater and above