Income Tax (Amendment) Act, 2005

1. (I) This Act may be cited as the Income Tax (Amendment) Short title and Act, 2005, and shall be read as one with the Income Tax Act, in this commencement Act referred to as the principal Act. Cap. 323 (2) TirisAct shall come into operation on 1 g April, 2005, and subject to any provisions to the contrary, shall have effect in relation to the charge of tax for the charge year whichends on 31 n March, 2006, and in relation to each subsequent charge year.

2. Section two of the principal Act is amended in subsection (I) by the deletion of the definition of" former Zambia Consolidated Copper Mining Company " and the ·substitution therefor of the following: Amendment to section 2 " former Zambia Consolidated Copper Mining Company" means any division or metal treatment operation of Zambia Consolidated Copper Mines Limited sold under the PrivatisationAct and includes any ofits successors in title or assigns." Cap. 386 3� Section twenty-one of the principal Actis amended in subsection Amendment tosection21 (5) by the deletion of the words" five million kwacha "and the substitution thereforofthe words" ten iliillio�·kwacha ". '"

4. Sectionforty-fouroftheprincipa!Actisamendedby the deletion Amendment of paragraph (m) and the substitution therefor ofthe following new of section 44 paragraph: {m) any copper price participation payment or cobalt price participation payment: Copies of this Act can be obtained from the Government Printer, P.O. Box 30/36, /0/0/ Lusaka. PriceKJ,000each. r 2 No. 1 of 2005] T11come Tax (Ame11dme11t) Amendment of section 46 Provided that a deduction shall be allowed to Konkol a Copper Mines Pie and Mopani Mines Pie in respect of any payments made pursuant to cobalt price participation and copper price participation agreements between Konkola Copper Mines Pie or Mopani Copper Mines Pie and Zambia Consolidated Copper Mines Limited;

5. Section.fony-sixof theprincipa!Actis amended in subsection ( 4)­ ( a) by the deletion in paragraph (a) of the words" one hundred and seventy penalty units" and the substitution therefor of the words" one thousand penalty units"; and (b) by_ the deletion in paragraph (b) of the words" three hundred and forty penalty units" and the substitution therefor of the words" two thousand penalty units". Amendment ofscction46A . 6. Section Jorry-six A of the principal Act is amended in subsection (8)- Amendment of section 64 A Repeal and replacement of section 8 lB Tax clearance certificate (a) by the deletion in paragraph (a) of the words" one hundred and seventy penalty units" and the substitution therefor of the words "one thousand penalty units"; and (b) by the deletion in paragraph (b) of the words" three hundred and forty penalty units" and the substitution therefor of the words" two thousand penalty units".

7. Section sixty-four A of the principal Act is amended in subsection (2)- (a) by the deletion of the full stop at the end of that subsection and the substitution therefor of a colon; and (b) by the insertion after the colon of the following new proviso: Provided that the provisions of this subsection shall not apply- to income earned from the provision of consultancy services.

8. The principal Act is amended by the repeal of section eighty­ one B and the substitution therefor of the following new section:

81B. (1) Where any person, institution or authority is empowered by any written law or otherwise to register the transfer of any property, that person, institution or authority shall not register the transfer unless the person or partnership transferring the property produces a tax clearance certificate issued to them for the purpose of the transfer. (2) Any person, institution or authority empowered to issue a trading licence under the Trades Licensing Act or any other • Income Tax (Amendment) [No. 1 of 2005 3 written law shall not issue the trading licence to any applicant unless the applicant produces a tax clearance certificate. Cap.393 (3) Any person, institution or authority empowered to issue a permit or mining licence under the Mines and Minerals Act shall not issue the permit or licence to any applicant unless the applicant produces a tax clearance certificate. Cap.213 (4) A person, partnership, institution, organisation, or association shall not transact with a supplier of goods or services unless the supplier produces a tax clearance certificate issued pursuant to subsection (2) . (5) The Commissioner-General may by notice in writing cancel a tax clearance certificate and the cancellation shall have effect from the date of service of the notice on the holder of the tax clearance certificate. (6) The holderofa tax clearance certificate shall, within thirty days after the date of service and of the notice of cancellation of the certificate, return the certificate to the Commissioner-General. (7) For purposes of this section- " mining lice::-re "means a gemstone, small scale or large scale mining licence; "permit" means a prospecting licence; "property " means- ( a) any land in Zambia; or (b) any share issued by a company incorporated in Zambia;and "tax clearance certificate " means a certificate issued by the Commissioner-General, valid for such period as may be specified in it, stating that the person or partnership to whom or to which it is issued fulfilled all obligations imposed upon them or it by this Act and by any other Act for which the Commissioner-General is responsible or has made arrangements satisfactory to the Commissioner-General for doing so.

9. The Charging Schedule to the principal Act is amended--- (a) in clause (b) of subparagraph(!) of paragraph 1 by the deletion of the words " eighteen thousand kwacha per annum" and the substitution therefor of the words" thirty- Amendment of Charging Schedule 4 No. 1 of 2005) Income Tax (Amendment) six thousand kwacha per annum"; and (b) in subparagraph (I) ofparagraph2- (i) by the insertion in the proviso to clause (a) of the words " and defined benefit fund or, scheme. " after the word" scheme "; (ii) by the deletion in clause ( c) of the words " three million, one hundred twenty thousand kwacha" and the substitution therefor of the words" three million, three hundred and sixty thousand kwacha "; and (iii) by the deletion ofclauses (d), (e) and (f) and the substitution therefor of the following new clauses: ( d) on the balance of so much of an individual's income as exceeds three million, three hundred and sixty thousand kwacha but does not exceed twelve miliion kwacha attherateofthirtyper centum perannum; (e) on the balance of so much of an individual's income as exceeds twelve million kw a cha but does not exceed sixty million kwacha at the rate of thirty-five per centum per annum;and (f) on the balanceofso much of an individual's incomeas exceeds sixty million kwacha at the rate of thirty-seven point five per centum per annum.