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Income Tax (Amendment) Act, 2018

This provision amends section 30A and replaces the rule for calculating indexed losses and the exchange rate used for that calculation. Section 33 is amended to change how indexed capital allowanc…

amendmentbetting and gamingbusiness compliancecapital allowancescharitable organisationcompliancedocument retentionexchange rate calculationfinancial definitionsgamingincome taxlegislation updateloss indexingpenaltiespresumptive taxrepealskills development levystatutory amendmentstatutory schedule amendmentstatutory text amendmentTax lawtax assessment deadlinestax compliancetax computationtax exemptionturnover taxwithholding tax
Jurisdiction
Zambia
Structure
17 provisions
Citation
Act 17 of 2018
Dates
Undated source snapshot
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01

Purpose and legislative effect

“This provision amends section 30A and replaces the rule for calculating indexed losses and the exchange rate used for that calculation.”

This provision amends section 30A and replaces the rule for calculating indexed losses and the exchange rate used for that calculation. Section 33 is amended to change how indexed capital allowances are calculated, using exchange rates and the Bank of Zambia mid-rate. This section amends the principal Act by repealing section 43B. This section changes section 44 of the principal Act by deleting paragraph (o) and replacing it with new text, and by adding paragraph (p). Businesses covered by Part IX must keep business books, accounts, documents, records, and other information for 10 years from the last entry.

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Showing 17 of 17 provisions

Substitution 8Repeal 5Amendment 3Provision
§ 3Section 30A of the principal Act is amended by the deletionSubstitution

This provision amends section 30A and replaces the rule for calculating indexed losses and the exchange rate used for that calculation.

3. Section 30A of the principal Act is amended by the deletion of subsection (2) and the substitution therefor of the following: Amendment of section 30A (2) For the purposes of this section indexed losses shall be computed as follows: [1 + (R2-R1)/R1] x loss brought forward Where: R1 is the Kwacha against the United States dollar at the average exchange rate for the accounting year preceding the accounting year in which the loss is being claimed; and R2 is the Kwacha against the United States dollar at the average exchange rate for the accounting year in which the loss is being claimed. (3) The Kwacha against the United States dollar exchange rate to be used for the purpose of subsection (2) is the average Bank of Zambia mid-rate for the relevant accounting years.
Section 3Verify source
§ 4Section 33 of the principal Act is amended by the deletionRepeal

Section 33 is amended to change how indexed capital allowances are calculated, using exchange rates and the Bank of Zambia mid-rate.

4. Section 33 of the principal Act is amended by the deletion of subsection (3) and the substitution therefor of the following: Amendment of section 33 (3) For the purposes of this section indexed capital allowances shall be computed as follows: [1 + (R2 - R1)/R1] x capital allowance] Where: R1 is the Kwacha against the United States dollar at the average exchange rate for the accounting year preceding the accounting year in which the capital allowance is being claimed; and R2 is the Kwacha against the United States dollar at the average exchange rate for the accounting year in which the capital allowance is being claimed. (4) The Kwacha against the United States dollar exchange rate to be used for the purpose of subsection (3) is the average Bank of Zambia mid-rate for the relevant accounting years. (5) Despite the other provisions of this Act, a capital allowance granted under this section shall be granted for a charge year irrespective of the period covered by the accounts being assessed. 322 No. 17 of 2018] Income Tax (Amendment) Repeal of section 43B Amendment of section 44 Act. No. 11 of 2015 Amendment of section 55 Amendment of section 64A
Section 4Verify source
§ 5The principal Act is amended by the repeal of section 43BRepeal

This section amends the principal Act by repealing section 43B.

5. The principal Act is amended by the repeal of section 43B.
Section 5Verify source
§ 6Section 44 of the principal Act is amended by the repealRepeal

This section changes section 44 of the principal Act by deleting paragraph (o) and replacing it with new text, and by adding paragraph (p).

6. Section 44 of the principal Act is amended by the repeal of paragraph (o) and the substitution therefor of the following: (o) provision for a contingent employee cost that is not paid out to the employee in the charge year; and (p) mineral royalty payable under the Mines and Minerals Development Act, 2015.
Section 6Verify source
§ 7Section 55 of the principal Act is amendedSubstitution

Businesses covered by Part IX must keep business books, accounts, documents, records, and other information for 10 years from the last entry.

7. Section 55 of the principal Act is amended— (a) in subsection (1), by the deletion of the words “ books and accounts ” and the substitution therefor of the words “ books, accounts, documents, records and other information ”; (b) by the insertion of the following new subsection immediately after subsection (1): (2) Despite subsection (1), businesses covered by Part IX shall retain books, accounts, documents, records and other information relating to the business for ten years from the date of the last entry in those books, accounts, documents, records and that other information.; (c) by the renumbering of subsections (2), (3) and (4) as subsections (3), (4) and (5) respectively; and (d) by the deletion of the figure “ (3) ”in subsection (5) and the substitution therefor of the figure “ (4) ”.
Section 7Verify source

Part

Part IX shall retain books, accounts, documents, records

§ 8Section 64A of the principal Act is amended by theAmendment

The Commissioner-General may assess betting and gaming businesses for presumptive tax and may appoint an agent to withhold turnover tax on payments for goods or services.

8. Section 64A of the principal Act is amended by the— (a) insertion of the following new subsections immediately after subsection (2): (3) The Commissioner-General may make a standard assessment requiring a person carrying on the business of betting and gaming to pay a presumptive tax as set out in Part III of the Ninth Schedule. (4) The Commissioner-General may appoint a person as an agent to withhold turnover tax before making any payments for the supply of goods or services. Income Tax (Amendment) [No. 17 of 2018 323 (b) renumbering of subsection (3) as subsection (5).
Section 8Verify source

Part

Part III of the Ninth Schedule.

§ 9Section 65 of the principal Act is amended by theSubstitution

The amendment changes the time limits for making tax assessments: generally no assessment may be made after six years from the end of the charge year, with listed exceptions, and some section 97A–97D assessments have a ten-year limit.

9. Section 65 of the principal Act is amended by the— (a) deletion of subsection (2) and the substitution therefor of the following: Amendment of section 65 (2) Subject to subsection (3), an assessment shall not be made for a charge year after six years from the end of that charge year. (3) Despite subsection (2), an assessment may be made for a charge year after six years from the end of that charge year— (a) in cases of fraud or wilful default; or (b) for the purposes of— (i) sections 21, 88, 91, 97A, 97B, 97C, 97D or 113, except that an assessment for the purposes of sections 97A, 97B, 97C and 97D shall not be made after ten years from the end of that charge year; (ii) part VII; (iii) paragraph 25 of the Fifth Schedule; or (iv) granting tax credits as provided in the Charging Schedule.; and (b) renumbering of subsections (3) and (4) as subsections (4) and (5) respectively.
Section 9Verify source

Part

Schedule; or

§ 10The principal Act is amended by the repeal of sectionRepeal

This section repeals section 97AA of the principal Act.

10. The principal Act is amended by the repeal of section 97AA.
Section 10Verify source
§ 11Section 97C (7) of the principal Act is amended by theSubstitution

This amendment replaces the words “ten thousand” with “eighty million” in Section 97C(7).

11. Section 97C (7) of the principal Act is amended by the deletion of the words “ ten thousand ” and the substitution therefor of the words “ eighty million ”.
Section 11Verify source
§ 12Section 100 (1) (e) of the principal Act is amended byRepeal

This amendment adds percentage amounts for cases involving negligence, wilful default, or fraud in relation to a person liable to pay skills development levy.

12. Section 100 (1) (e) of the principal Act is amended by the— (a) insertion of the following new subparagraph immediately after subparagraph (ii): Repeal of section 97AA Amendment of section 97C Amendment section 100 324 No. 17 of 2018] Income Tax (Amendment) Act No 46 of 2016 (iii) in relation to a person liable to pay skills development levy in accordance with the Skills Development Levy Act, 2016— (A) in the case of negligence, zero point two five percent of the amount; (B) in the case of wilful default, zero point five percent of the amount; and (C) in the case of fraud, zero point seven five percent of the amount; of any income omitted or understated, in consequence of such failure, incorrect return, information or submission.; and (b) renumbering of subparagraph (iii) as subparagraph (iv). Amendment of Second Schedule
Section 12Verify source

Part

Schedule

§ 13The Second Schedule to the principal Act is amendedSubstitution

This provision amends the Second Schedule and says certain public benefit organisations may be exempt from tax on income if the income is used only for the permitted purpose and the Minister approves the exemption.

13. The Second Schedule to the principal Act is amended— (a) by the deletion of paragraph 6 (1) and the substitution therefor of the following: (1) There is exempt from tax the income of a public benefit organisation established for the promotion of religion or education, or for the relief of poverty or other distress, if— (a) in relation to the people of the Republic, the income may not be expended for any other purpose; and (b) the Minister has approved the exemption from tax the income of that public benefit organisation.; and (b) in paragraph 6 (2), by the deletion of the comma and the words “ body or persons or trust ” immediately after the word “ organisation ”. Amendment of Third Schedule Amendment of Fifth Schedule
Section 13Verify source
§ 14The Third Schedule to the principal Act is amended byAmendment

This provision amends the Third Schedule to the principal Act by deleting paragraph 3.

14. The Third Schedule to the principal Act is amended by the deletion of paragraph 3.
Section 14Verify source
§ 15The Fifth Schedule to the principal Act is amendedSubstitution

This section amends the Fifth Schedule to the principal Act by adding a definition, deleting one paragraph, and changing wording in another paragraph.

15. The Fifth Schedule to the principal Act is amended— (a) in paragraph 19, by the insertion of the following new definition in the appropriate place: Income Tax (Amendment) [No. 17 of 2018 325 “ non-contiguous ” means not one despite touching or sharing a common border; (b) by the deletion of paragraph 22A; and (c) in paragraph 23 (1), by the deletion of the words “ not contiguous ” and the substitution therefor of the word “non-contiguous ”.
Section 15Verify source
§ 16The Ninth Schedule to the principal Act is amended by theSubstitution

This provision changes the Ninth Schedule to the principal Act by deleting Part II and replacing it with new Parts II and III in the Appendix.

16. The Ninth Schedule to the principal Act is amended by the deletion of Part II and the substitution therefor of Parts II and III set out in the Appendix.
Section 16Verify source
§ 17The Charging Schedule to the principal Act is amendedSubstitution

This section amends the charging schedule and changes several tax rates and thresholds.

17. The Charging Schedule to the principal Act is amended— (a) in paragraph 3 (1) (g), by the deletion of the figure “ 6 “and the substitution therefor of the figure “ 6 (2) ”; (b) in paragraph 5, by the— (i) deletion of subparagraph (c) and the substitution therefor of the following: Amendment of Ninth Schedule Amendment of Charging Schedule (c) the maximum rate of tax on income the Commissioner-General determines as originating from the export of non- traditional products is fifteen percent, except that where the Commissioner- General determines as originating from the export of non- traditional products from farming or agro-processing, the maximum rate of tax on that income is ten percent;; and income (ii) insertion of the following new subparagraph immediately after subparagraph (e): (f) the maximum rate of tax on income received by a company, from the manufacture of products made out of copper cathodes, is fifteen percent per annum.; (c) in paragraph 6 (1)— (i) by the insertion of the words “ payable to residents ” immediately after the word “ dividends ” in item (a); and (ii) by the deletion of item (b) and the substitution therefor of the following: 326 No. 17 of 2018] Income Tax (Amendment) (b) the rate of twenty percent for— (i) dividends payable to non- residents; and (ii) payments to non-resident contractors;; (d) in paragraph 6A, by the deletion of the word “ fifteen ” and the substitution therefor of the word “ twenty ”; and (e) in the proviso to paragraph 7, by the insertion of the following new item immediately after item (ix): (x) tax required to be deducted from the payment of interest to a non resident shall be at the rate of twenty percent. APPENDIX (Section 17) PART II TAX ON TURNOVER Turnover per annum K800,000 or below Tax Rate 4 percent PART III TAX ON BETTING AND GAMING Type of Game
Section 17Verify source

Part

PART III

§ 5GamingProvision

This provision lists monthly tax rates and monthly tax amounts for gaming categories, including slot machines and gaming machines.

5. Gaming: (a) Slot Machines (Bonanza) (b) Gaming Machines (Limited Pay Out) NOTES: Monthly Tax Rate or Monthly Tax Amount 20 percent of gross takings 35 percent of gross takings 35 percent of net proceeds 10 percent of gross takings K250 per machine K500 per machine
Section 5Verify source
§ 2Section 29 of the principal Act is amended by theAmendment

This provision defines “Net proceeds” and “Gross takings.”

2. “ Net proceeds ” means the gross proceeds less sums paid out for the prizes “ Gross takings ” means the total amount staked by players less winnings payable
Section 2Verify source

Legislative relationships

7 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

2 instruments

  • charging schedule and changes several tax rates and thresholds. 17. The Charging Schedule to the principal Act

    Section 17

  • Fifth Schedule to the principal Act

    Section 15

N–S

2 instruments

  • of section 43B This section amends the principal Act

    Section 5

  • of section This section repeals section 97AA of the principal Act

    Section 10

T–Z

3 instruments

  • Third Schedule to the principal Act

    Section 14

  • This section changes section 44 of the principal Act

    Section 6

  • Zambia mid-rate. 4. Section 33 of the principal Act

    Section 4

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