Property Transfer Tax Act

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
REPUBLIC OF ZAMBIA
THE PROPERTY TRANSFER TAX ACT
CHAPTER 340 OF THE LAWS OF ZAMBIA
CHAPTER 340 THE PROPERTY TRANSFER TAX ACT
THE PROPERTY TRANSFER TAX ACT
ARRANGEMENT OF SECTIONS
Section
1. Short title and commencement
2. Interpretation
3. Functions and powers of Commissioner
4. Property transfer tax
5. Realised value
6. Exemptions
7. Liquidators, receivers, trustees in bankruptcy etc.
8. Transfer by agents, mortgages etc.
9. Returns, notices, etc.
9A. Penalties under the Income Tax Act to apply
10. Objections and appeals
11. Payment of tax and penalty for late payment
12. Recovery of tax
13. Regulations
CHAPTER 340

the Income Tax Act to apply
10. Objections and appeals
11. Payment of tax and penalty for late payment
12. Recovery of tax
13. Regulations
CHAPTER 340

The Laws of Zambia
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PROPERTY TRANSFER TAX Act No. 12 of 1984
4 of 1986
11 of 1987
28 of 1990
4 of 1994
An Act to provide for the charging and collection of a tax based on the value
realised from the transfer of certain property in the Republic; and to provide
for matters connected with or incidental to the foregoing. [30th March, 1984
1. This Act may be cited as the Property Transfer Tax Act, and shall come into
operation on the 1st April, 1984. Short title and
commencement
2.

1984
1. This Act may be cited as the Property Transfer Tax Act, and shall come into
operation on the 1st April, 1984. Short title and
commencement
2.

(1) In this Act, unless the context otherwise requires-
"Commissioner-General" means the Commissioner-General appointed under the
Zambia Revenue Authority Act;
"immediate family" means a spouse, child, duly adopted child or step-child;
"land" includes any building, structure or other improvement thereon;
"person" includes a partnership;
"property" means-
(a) any land in the Republic;
(b) any share issued by a company incorporated in the Republic;
"realised value" means the value, as calculated in accordance with the provisions
of section five, of any property liable to tax;
"Registrar" shall have the meaning assigned thereto in the Lands and Deeds
Registry Act;
"share" includes any stock or any certificate or warrant relating to any share or
stock;
"tax" means the property transfer tax charged under this Act;
"transfer"-
(a) in relation to land, excludes-
(i) letting or sub-letting;
(ii) leasing, under-leasing or sub-leasing, for a period of less than
five years;
(b) in relation to a share, excludes the allocation of the same by the
company to the member in whose name it is first registered. Interpretation
Cap. 321
Cap.

lation to a share, excludes the allocation of the same by the
company to the member in whose name it is first registered. Interpretation
Cap. 321
Cap.

185
(2) Unless the context otherwise requires, words and expressions not defined in this
Act but defined in the Income Tax Act shall, in this Act, have the meaning assigned
thereto in the Income Tax Act. Cap. 323
Cap. 323

t defined in this
Act but defined in the Income Tax Act shall, in this Act, have the meaning assigned
thereto in the Income Tax Act. Cap. 323
Cap. 323

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3. (1) The Commissioner-General shall, subject to the direction of the Minister, be
responsible for giving effect to the provisions of this Act, and shall for that purpose have
all the powers conferred on the Commissioner-General by the Income Tax Act. Functions and powers
of Commissioner. Cap. 323
(2) The Commissioner-General may, by writing under his hand and subject to such
conditions as he may specify, delegate to a Deputy Commissioner or to any officer in the
Department of Taxes any power conferred, or any duty imposed, on him by this section. 4. (1) Whenever any property is transferred, there shall be charged upon, and
collected from, the person transferring such property a property transfer tax in accordance
with the provisions of this Act. Property transfer tax
(2) The rate of tax shall be two and one-half per centum of the realised value of the
property. (3) For the purpose of establishing the taxable value of transactions, the
Commissioner-General may use assessments done by the Government Valuation
Department or any other relevant organisation he considers expedient.

s, the
Commissioner-General may use assessments done by the Government Valuation
Department or any other relevant organisation he considers expedient.

(As amended by Act 4 of 1984, 28 of 1990 and No. 4 of 1994)
5. (1) Where the property to be valued is land, the realised value shall be the price
at which it could, at the time of its transfer, reasonably have been sold on the open market
as determined by the Commissioner-General. Realised value
(2) Where the property to be valued is a share, the realised value shall be the price
at which it could, at the time of its transfer, reasonably have been sold on the open market
as determined by the Commissioner-General or its nominal value, whichever is the
greater. (3) Where the Commissioner-General determines that there has been unreasonable
delay between the date on which the property is sold and the date on which it is
transferred, and that as a result of such delay the value of the property is different at the
two dates, the realised value of such property shall be the greater of the two values. (4) Where a person transfers his property to a member of his immediate family, the
realised value of such property shall be the actual price, if any, received therefor by such
person.

property to a member of his immediate family, the
realised value of such property shall be the actual price, if any, received therefor by such
person.

(5) Where, within a group of companies, a company transfers property to another
company (other than a company which is not resident in the Republic) within the same
group and the Commissioner-General is satisfied that such transfer was carried out for the
purpose of effecting internal organisation of that group, he may determine that such
transfer shall have no realised value.

er was carried out for the
purpose of effecting internal organisation of that group, he may determine that such
transfer shall have no realised value.

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6. (1) The following shall be exempt from the provisions of this Act: Exemptions
(a) the Government;
(b) any foreign government;
(c) such international organisation, foundation or agency as the Minister may
approve for the purpose;
(d) any charitable organisation or trust registered as such under the Income
Tax Act;
Cap. 323
(e) any co-operative society registered under the Co-operative Societies Act; Cap. 397
(f) the various organisations listed in paragraph 5 (1), 5 (2), 5 (2) (a) and 5 (2)
(b) of the Second Schedule to the Income Tax Act;
Cap. 323
(g) any transfer of property by a shareholder of a company incorporated under
the Companies Act, if such transfer is his contribution towards the equity of
that company. (2) Where property held in trust or constructive trust is transferred to another person
to hold in trust or constructive trust for the same beneficiaries, such transfer shall not be
liable to tax.

ve trust is transferred to another person
to hold in trust or constructive trust for the same beneficiaries, such transfer shall not be
liable to tax.

(3) Where property is settled in trust for the benefit of a member of the immediate
family of the settler, the transfer of such property to the trustees or the transfer by the
trustees to such beneficiary shall not be liable to tax. (4) Where property devolves upon death, the resulting transfer of such property
shall not be liable to tax if the transferee is a member of the immediate family of the
deceased; nor shall any intermediate transfer to or by an executor, administrator, personal
representative or other person acting in similar capacity be liable to tax if such
intermediate transfer is carried out to give effect to such devolution. (5) The Minister may, by statutory order, exempt from tax any person, transfer or
property, or any class thereof. (As amended by Act No. 11 of 1987)
7. (1) Any transfer of property to a person in his capacity as a liquidator shall not be
liable to tax. Liquidators, receivers,
trustees in bankruptcy
etc.

) Any transfer of property to a person in his capacity as a liquidator shall not be
liable to tax. Liquidators, receivers,
trustees in bankruptcy
etc.

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(2) Where a person in his capacity as a liquidator holds any property belonging to a
debtor, any transfer of such property by him to any person other than the debtor shall be
liable to tax and the amount of such tax shall be recoverable from the liquidator. (3) In this section-
"debtor" includes a bankrupt or other person whose property has been placed in
the hands of a liquidator for the purpose of settling the affairs or debts of
such debtor, and in the case of a company, for the purpose of winding up
such company;
"liquidator" includes receiver, trustee in bankruptcy, assignee in bankruptcy or
under a deed of arrangement, or any other person acting in a similar
capacity. 8. (1) Where a mortgagee transfers any mortgaged property to enforce his rights
under a mortgage, the mortgagee shall be deemed to be an agent of the mortgagor and
subsection (2) shall apply. Transfer by agents,
mortgagees, etc.

s
under a mortgage, the mortgagee shall be deemed to be an agent of the mortgagor and
subsection (2) shall apply. Transfer by agents,
mortgagees, etc.

(2) Where an agent, attorney, sheriff, or other person acting in the name of the
owner or holder of any property transfers such property, the owner or holder of such
property and such agent, attorney, sheriff or other person, as the case may be, shall both
be jointly and severally liable for tax in respect of such transfer. (3) In this section "mortgagee" includes any person entitled to security in any
property, or to the benefit of a charge, encumbrance or other similar liability over any
property, of another, and "mortgage", "mortgagor" and "mortgaged property" shall be
construed accordingly. 9. (1) Every person who transfers any property, whether such property was
transferred on his own behalf or on behalf of another, shall render a provisional return of
tax in such form and giving therein such details of the property and the transaction as may
be prescribed by the Commissioner-General. Returns, notices, etc.

such form and giving therein such details of the property and the transaction as may
be prescribed by the Commissioner-General. Returns, notices, etc.

(2) The provisional return referred to in subsection (1) shall be submitted-
(a) in the case of land, to the Commissioner of Lands together with the
application for consent to transfer such property;
(b) in all other cases, to the Commissioner-General within thirty days of the
transfer. (3) The Commissioner of Lands shall satisfy himself that the details given in the
provisional return received by him under sub-section (2) are correct and shall thereafter
forward it to the Commissioner-General.

details given in the
provisional return received by him under sub-section (2) are correct and shall thereafter
forward it to the Commissioner-General.

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(4) The Registrar shall not register any transfer of property unless he is satisfied that
any tax due under this Act in respect of such transfer has been paid. (5) Without prejudice to the other provisions of this Act, sections forty-five, forty-six,
forty-seven, forty-eight, fifty-seven, fifty-eight, sixty-six, sixty-nine and seventy of the
Income Tax Act shall apply, mutatis mutandis, in relation to the tax under this Act as they
apply in relation to the tax under the Income Tax Act. Cap. 323
Cap. 323
(6) An assessment shall be made in respect of every person liable to tax under this
Act, and sections sixty-three to sixty-nine (inclusive) of the Income Tax Act shall apply,
mutatis mutandis, in relation to the assessments under this Act as they apply in relation to
the assessments under the Income Tax Act. Cap. 323
Cap. 323
9A. Subject to the other provisions of this Act, the provisions of Part X of the
Income Tax Act relating to offences and penalties shall apply, with necessary changes, to
the offences and penalties under this Act. (As amended by Act No.

e Tax Act relating to offences and penalties shall apply, with necessary changes, to
the offences and penalties under this Act. (As amended by Act No.

11 of 1987)
Penalties under
Income Tax Act to
apply. Cap. 323
10. Any determination or assessment made under this Act may be objected to or
appealed against by the person affected thereby; and without prejudice to the other
provisions of this Act, the provisions of Part XI of the Income Tax Act relating to objections
and appeals shall apply, mutatis mutandis, in relation to objections and appeals under this
Act as they apply in relation to objections and appeals under the Income Tax Act. Objections and
appeals
Cap. 323
Cap. 323
11. (1) The tax shall become due and payable within fourteen days of the date of
issue of the assessment in respect thereof. Payment of tax and
penalty for late
payment
(2) Where any amount of tax is not paid within the period specified in subsection (1),
a penalty equal to five per centum of the unpaid amount shall be charged for each month
or part thereof for which the tax remains unpaid; and for the purposes of recovery and
collection such penalty shall be deemed to be part of the tax.

or part thereof for which the tax remains unpaid; and for the purposes of recovery and
collection such penalty shall be deemed to be part of the tax.

(3) (a) Where any amount of tax or penalty due is not paid within the period
specified in sub-section (1), such an amount shall attract interest at the rate prescribed in
paragraph (b) and shall continue to attract such interest until such date as the payment of
the tax has been remitted;
(b) the rate of interest prescribed for the purpose of paragraph (a) shall be the
discount rate published from time to time by the Bank of Zambia plus two per centum per
annum. (As amended by Act No. 4 of 1994)

raph (a) shall be the
discount rate published from time to time by the Bank of Zambia plus two per centum per
annum. (As amended by Act No. 4 of 1994)

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12. Subject to the provisions of this Act, sections seventy-nine, seventy-nine A,
seventy-nine B, seventy-nine C and seventy-nine D of the Income Tax Act shall apply,
mutatis mutandis, to the recovery of tax under this Act as they apply to the recovery of tax
under the Income Tax Act. Recovery of tax
Cap. 323
Cap. 323
13. The Minister may, by statutory instrument, make regulations for the better
carrying out of the purposes of this Act. Regulations
SUBSIDIARY LEGISLATION
SECTION 6-THE PROPERTY T RANSFER T AX
(EXEMPTION) O RDER
Statutory Instrument
104 of 1993
Order by the Minister
1. This Order may be cited as the Property Transfer Tax (Exemption) Order. Title
2. There shall be exempt from tax under the Act any instrument entered into,
granted or issued in connection with the exchange, transfer, sale or other disposal of any
stock or share listed by any stock exchange licensed under the Securities Act, and traded
through a licensed Securities Market. Exemption from tax
Cap. 354
1. This Order may be cited as the Property Transfer Tax (Exemption) Order. Statutory Instrument
50 of 1997
Title
2.

arket. Exemption from tax
Cap. 354
1. This Order may be cited as the Property Transfer Tax (Exemption) Order. Statutory Instrument
50 of 1997
Title
2.

The Zambia Venture Capital Fund Limited shall be exempt from paying any tax
under the Act for any transfer of shares by Zambia Venture Capital Fund Limited. Exemption from
payment of property
transfer tax