Income Tax Act - National Assembly of Zambia

1 The Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaREPUBLIC OF ZAMBIATHE Income TAX ACTCHAPTER 323 OF THE LAWS OF ZAMBIACHAPTER 323 THE Income TAX ACTTHE Income TAX ACTARRANGEMENT OF SECTIONSPART IPRELIMINARY AND INTERPRETATIONS ection 1. Short title 2. Interpretation 3. Repealed by Act No. 7 of 1996 4. Resident 5. Receipt of incomePART IIADMINISTRATIONThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia 6. Appointment of staff 7. Officers and delegation of functions 8. Secrecy 9. Regulations10. Records of assessment11. Forms and notices12. Notices and service13. Repealed by Act No. 7 of 1996 PART IIICHARGE OF TAX14. Charge of Tax15. Exemptions from tax15A. Suspension and rebate of Income Tax16. Chargeability of Income that cannot be remitted on accrual17.

2 Classification of income18. Income deemed within the Republic19. Income deemed received20. Repealed by Act No. 7 of 199621. Apportionment of gratuities and compensation for loss of officeSection22. Apportionment of income23. Provisions relating to Income from business24. Provisions relating to Income after cessation of business25. Insurance business26. Income of partner27. Special provisions relating to deceased's estate and trusts28. Income of non-resident air, sea or land transport businessPART IVDEDUCTIONS29. Deductions generally29A. Foreign currency exchange gains and losses30. Losses30A. Repealed by Act No. 27 of 1995 The Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia31. Transfer of losses32. Losses prior to bankruptcy, etc33. Capital allowances34. Investment allowances34A.

3 Development allowance35. Preliminary business expenses36. Amount paid after cessation of business37. Approved fund deductions38. Technical education39. Subscriptions40. Repealed by Act No. 3 of 199741. Charities42. Repealed by Act No. 3 of 199743. Deduction for research43A. Deduction for bad and doubtful debts43B. Repealed by Act No. 17 of 198843C. Deduction for Mortgage interest43D. Deduction for employing a handicapped person43E. Repealed by Act No. 7 of 199644. Case of no deductionPART VRETURNS AND ASSESSMENTSThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaSection45. Notice to Commissioner-General45A. Duty to provide taxpayer identification number45B. Taxpayer identification number required for certain transactions46. Returns generally46A. Provisional Income47.

4 Further provisions as to returns48. Information generally49. Statement of bank accounts, assets, Return of lodgers and inmates51. Information as to business matters52. Repealed by Act No. 3 of 199753. Public documents54. Information as to companies55. Accounts and records56. Documents in support of returns57. Examination by Commissioner-General58. Production and preservation of books and documents59. Repealed by Act No. 7 of 199660. Amount of dividends, interest or royalties to be included in income61. Partnership returns62. Business accounts62A. Averaging of farming and fishing income63. Commissioner-General's power to assess64. Estimated assessments65. Assessment rules66. Taxpaying agents67. Assessment of taxpaying agent68. Right of taxpaying agent69. Company's taxpaying agent70.

5 Errors in formPART VIPAY AS YOU EARNThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaSection71. Assessment, charge, collection and recovery72. Assessment not always necessary73. Priority on insolvencyPART VIIDOUBLE TAXATION RELIEF74. Double taxation agreements75. Double taxation relief76. Unilateral double taxation reliefPART VIIICOLLECTION, RECOVERY, REFUND AND RELIEFS77. When tax due and payable78. Penalty for non-payment of tax78A. Interest on overdue payments79. Recovery and proceedings79A. Recovery by distress79B. Recovery through court79C. Charge on land79D. Recovery of partner's tax from partnership80. Deduction of tax from interest and royalties81. Deduction of tax from dividends81A. Repealed by Act No. 7 of 199681B. Tax clearance certificate81C. Deduction of tax for use of patent, design, trade mark etc82.

6 Deduction on tax from lump sum payments82A. Deduction of tax from certain payments82B. Definition of property83. Property not in possession84. Agent for payment of tax85. Repealed by Act No. 7 of 1996 The Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia86. Liability where property alienatedSection87. Refunds in general88. Refunds in cases of accumulated income89. Refund or set-off of tax chargeable on a beneficiary90. Refund or set-off of tax deducted from dividends, etc90A. Job credits90B. Repealed by Act No. 9 of 197791. Error or mistake relief92. Remission of Tax93. Tax less than three thousand kwacha not payablePART IXAVOIDANCE94. No set-off or refund where that is the object of change of ownership of sharesin company95. Transactions designed to avoid tax liability95A.

7 Repealed by Act No. 12 of 198295B. Inter-company shareholdings95C. Repealed by Act No. 7 of 199695D. Loans to effective shareholders96. Incurred loss not deductible in certain cases97. Commissioner-General may avoid trustPART XOFFENCES AND PENALTIESThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia98. General penalty99. Penalty for failure to comply with notice, Penalty for incorrect returns, Time limit102. Penalty for fraudulent returns, Bodies corporate104. Power to search and seize105. Documents in evidencePART XIOBJECTIONS AND APPEALSS ection106. Assessments good until disproved107. Establishment of Tax Appeal Court, its composition and powers108. Objection to assessment109. Appeal against assessment110. Determination of appeals111. Appeal to High Court and Supreme Court112.

8 Privacy of proceedings113. Adjustment on successful objection or appeal114. Appeals from Commissioner-General's discretion and determinations115. Loss certificate for appeal115A. Repealed by Act No. 7 of 1996 PART XIIREPEALS AND TRANSITIONAL PROVISIONSThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia116. RepealsARRANGEMENT OF SCHEDULESFIRST SCHEDULE-Further Classification of IncomeParagraph 1. Maintenance 2. Improvements 3. Commencement and cessation of employment 4. Lump sum payments 5. Capital recoveries 6. Exotic timber 7. Farm stock 8. Repealed by Act No. 9 of 1979 SECOND SCHEDULE-ExemptionsPART IParagraph EXEMPT OFFICE HOLDERSPART II FOREIGN EXEMPTIONSPART IIIEXEMPT ORGANISATIONS 5. Various organisations 6. CharitiesThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaPART IVEXEMPT Income 7.

9 Various exemptions 8. Passages 9. Interest10. Annuities11. Repealed by Act No. 2 of 199512. Repealed by Act No. 11 of 199213. Repealed by Act No. 11 of 1992 THIRD SCHEDULE-Insurance Business 1. Insurance other than life 2. Life insurance 3. Insurance and other business 4. Mutual and proprietary companiesFOURTH SCHEDULE-Approved FundsParagraph 1. Definition of "trustees" 2. Approval of pension funds 3. Procedural provisions relating to approval of fund and withdrawal of approval 4. Approval of annuity contracts and withdrawal of approval 5. Approval of foreign fund or scheme established by law 6. Appeals 7. RemotenessThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaFIFTH SCHEDULE-Capital Allowances for Buildings, Implements, Machinery and Plant,and PremiumsPART IBUILDINGS 1. Definition of industrial building 2. Definition of commercial building 3.

10 Initial allowance for industrial buildings 4. Wear and tear allowance for buildings 5. Balancing allowance for buildings 6. Divided usePART IIIMPLEMENTS, MACHINERY AND PLANT 7. Business to include employment in this Part 8. Frequently replaceable articles not within this Part 9. Repealed by Act No. 11 of 197410. Wear and tear allowance for implements, machinery and plantParagraph11. Capital recoveries for implements, machinery and plant12. Divided use13. Valuation in exceptional circumstancesPART IIIPREMIUM ALLOWANCEThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia14. Deduction of premium allowancePART IV15. Successions16. Subsidies17. Controlled salesPART VRATES OF INITIAL AND WEAR AND TEAR ALLOWANCES18. Rates of initial and wear and tear allowancesPART VIMINING DEDUCTIONS19. Interpretation of terms20. Capital expenditure deductions21.