Property Transfer Tax (Amendment) Act, 2022

3. Section 4 of the principal Act is amended by the deletion of subsection (2) and the substitution therefor of the following: (2) The rate of tax is — Act No. 7 of 2017 Amendment of section 4 (a) ten percent of the realised value in respect of a mining right for a mining licence; (b) five percent of the realised value in respect of a mining right for an exploration licence; (c) (d) (e) (f) ten percent of the realised value in respect of a mineral processing licence; five percent of the realised value in respect of land; five percent of the realised value in respect of shares; and five percent of the realised value in respect of intellectual property. Amendment of section 5

4. Section 5 of the principal Act is amended by— (a) the deletion of subsection (2A) and the substitution there- for of the following: (2A) Where the property to be valued is a share issued by a company incorporated outside the Republic that directly or indirectly owns at least ten percent of a company incorporated in the Republic, the realised value shall be, whichever is greater of the— (a) proportion that the value of the company incorporated in the Republic bears to the value of the company whose shares are being transferred multiplied by the value of the transferred shares; Property Transfer Tax (Amendment) [No. 27 of 2022 557 (b) proportion that the value of the company incorporated in the Republic bears to the value of the company whose shares are being transferred multiplied by the consideration for the transferred shares; and (c) proportion that the value of the company incorporated in the Republic bears to the value of the company whose shares are being transferred multiplied by the nominal value of the transferred shares.; (b) the deletion of subsection (2B) and the substitution there- for of the following: (2B) Despite subsection (2A), where the Commissioner-General is satisfied that a transfer is made for the purpose of group reorganisation and that there is no change in the shareholding with respect to the company incorporated in the Republic, the Commissioner-General may determine a nil value for that transfer, except that this subsection shall only apply to a company that has been part of the group of companies for three years or more preceding the transfer.; (c) the deletion of subsection (2C); (d) the renumbering of subsections (2D) and (2E) as subsections (2C) and (2D), respectively; (e) the deletion of subsection (3) and the substitution therefor of the following: (3) Where the property to be valued is an intellectual property or a mining right, the realised value of the intellectual property or mining right shall be the actual price of the intellectual property or mining right or as determined by the Commissioner- General, whichever is higher.; and (f) the insertion of the following new subsection immediately after subsection (5): (5A) Where a financial service provider trans- fers a foreclosed property, the realised value of the property shall be the actual price, if any, received by the financial service provider. 558 No. 27 of 2022] Property Transfer Tax (Amendment) Amendment of section 6 Amendment of section 9 Cap. 184

5. Section 6 (1) of the principal Act is amended by the insertion of the following new paragraph immediately after paragraph (g): (h) the surrender or forfeiture of shares for no consideration, except that a subsequent transfer to a different person shall be liable to tax.

6. Section 9 of the principal Act is amended— (a) in subsection (2)(b), by the deletion of subparagraph (i) and the substitution therefor of the following: (i) in the case of land, to the Commissioner-General together with the consent to transfer or assign issued under the Lands Act; and; (b) by the deletion of subsection (3); and (c) by the renumbering of subsections (4), (5), (6) and (7) as subsections (3), (4), (5) and (6), respectively.