Income Tax (Amendment) Act, 2016

5. Section 46 (3) (a) of the principal Act, is amended by the deletion of the date “ 30th June ” and the substitution therefor of the date “ 21st June ”.

6 . Section 55 of the principal Act is amended by the insertion, immediately after subsection (3), of the following: (4) The kwacha against the United States Dollar exchange rate to be used for purposes of translating the books of account referred to in subsection (3) is the average Bank of Zambia mid rate for the accounting period. Amendment of section 77 Amendment of section 78 Amendment of section 81B

7. Section 77 (1) of the principal Act is amended by the deletion of the date “ 30th June ” and the substitution therefor of the date “21st June”.

8. Section 78 (1) (c) of the principal Act is amended by the deletion of the word “ fourteenth ” and the substitution therefor of the word “ ten ”.

9 . Section 81B of the principal Act is amended by the insertion of the following immediately after subsection (2): Amendment of section 98 Insertion of section 98A Summary imposition of penalties (2A) A person, institution or authority empowered to register the ownership of a motor vehicle under any written law shall not register the motor vehicle unless the applicant produces a tax clearance certificate.

10. Section 98 of the principal Act is amended by the deletion of the words “ ten thousand ” and the substitution therefor of the words “ one hundred thousand ”.

11. The principal Act is amended by the insertion of the following immediately after section 98:

98A. (1) The Commissioner-General may, where satisfied that a person has committed an offence for which the penalty does not exceed two hundred thousand penalty units or where a person has admitted the commission of an offence under this Act for which the penalty does not exceed two hundred thousand penalty units, summarily demand from the person the payment of a fine not exceeding one hundred thousand penalty units in respect of the offence. (2) The Commissioner-General shall, where the Commissioner-General demands a payment under subsection (1), inform the person against whom the demand is made of the right to admit or dispute the liability. Income Tax (Amendment) [ No. 45 of 2016 1029 (3) A person from whom payment of a fine has been demanded under subsection (1) may elect to admit liability and pay the fine, or dispute liability. (4) The payment of a fine shall operate as a bar to any further criminal proceedings against the person making the payment in respect of the offence concerned. (5) The Commissioner-General on payment of a fine shall give a receipt to the person making the payment in such form as may be prescribed.

12. Section 102 (1) of the principal Act is amended by the deletion of the words “ thirty thousand ” and the substitution therefor of the words “ three hundred thousand”.

13. The Second Schedule to the principal Act is amended by the insertion, immediately after paragraph 6A, of the following:

6B. Despite paragraph 5 (1) or any other provision of this Act, any rent received by a statutory body referred to in that paragraph is subject to withholding tax under section 82A.

14. The Fifth Schedule to the principal Act is amended by the— (a) deletion in paragraph 10(5) of the words “ farming ” and “ agro-processing ”; and (b) insertion, immediately after paragraph 10(5), of the following: (5A) Despite any other provisions of this Act to the contrary, the wear and tear allowance on any implement, machinery or plant which is exclusively and directly used in farming or agro- processing for any charge year, shall be calculated on a straight-line basis at the rate of one hundred per centum of the cost. Amendment of section 102 Amendment of Second Schedule Rent received by statutory body subject to withholding tax Amendment of Fifth Schedule

15. The Ninth Schedule to the principal Act is amended by the deletion of Part II and the substitution therefor of the new Part set out in the Appendix.

16. The Charging Schedule to the principal Act is amended— (a) in paragraph 2(1) by the deletion in— Amendment of Ninth Schedule Amendment of Charging Schedule (i) item (c) of the words “ thirty-six thousand kwacha” and the substitution therefor of the words “thirty-nine thousand six hundred kwacha ”; 1030 [ No. 45 of 2016 Income Tax (Amendment) (ii) item (d) of the words “ thirty- six thousand kwacha ” and “ forty-five thousand six hundred kwacha ” and the substitution therefor of the words “ thirty-nine thousand six hundred kwacha ” and “ forty-nine thousand two hundred kwacha ”, respectively; (iii) (iv) item (e) of the words “ forty-five thousand six hundred kwacha ” and “ seventy thousand eight hundred kwacha ” and the substitution therefor of the words “ forty-nine thousand two hundred kwacha ”and “ seventy-four thousand four hundred kwacha ”, respectively; and item (f) of the words “ seventy thousand eight hundred kwacha ” and “ thirty five ” and the substitution therefor of the words “ seventy- four thousand four hundred kwacha ” and “thirty-seven point five ” respectively; (b) in paragraph 5(e) by the insertion immediately after the words “ carrying on ”, of the words “ electricity generation or ”; (c) in paragraph 5 (f) by the insertion, immediately after the words “ carrying on ”, of the words “ electricity generation or ”; and (d) in paragraph 6 (2), by the deletion of the word “ six ” and the substitution therefor of the word “ fifteen ”. Income Tax (Amendment) [ No. 45 of 2016 1031 APPENDIX (Section 8) TAX ON TURNOVER (Section 64A) PART II Monthly Turnover Category Tax Payable K0-K4,200 3% of monthly turnover above K3,000 K4,200.01-K8,300 K225 per month+3% of monthly turnover above K4,200 K8,300.01-K12,500 K400 per month+3% of monthly turnover above K8,300 K12,500.01-K16,500 K575 per month+3% of monthly turnover above K12,500 K16,500.01-K20,800 K800 per month+3% of monthly turnover above K16,500 Above K20,800 K1,025 per month+3% of monthly of turnover above K20,800 1032