Property Transfer Tax (Amendment), 2020

An Act to amend the Property Transfer Tax Act. [18th December, 2020
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Property Transfer Tax
(Amendment) Act, 2020, and shall be read as one with the Property
Transfer Tax Act, in this Act referred to as the principal Act. (2) This Act shall come into operation on 1st January,
2021. 2. Section 2 of the principal Act is amended by the insertion of
the following new definition in the appropriate place in alphabetical
order:
“Authority” means the Zambia Revenue Authority
established under the Zambia Revenue Authority Act;. 3. Section 3(2) of the principal Act is amended by the deletion
of the words “Domestic Taxes Division” and the substitution
therefor of the word “Authority”. 4. Section 4 of the principal Act is amended by the insertion
of the following new subsection immediately after subsection (1A):
(1B) A transfer of shares referred under subsection
(1A), is not liable to tax if the total value of the transferred
shares over a period of three years represents less than
ten percent of the total value of shares in the company
incorporated in the Republic. Enactment
Property Transfer Tax [No.

years represents less than
ten percent of the total value of shares in the company
incorporated in the Republic. Enactment
Property Transfer Tax [No.

22 of 2020 343
(Amendment)
Title and
Commence-
ment
Cap. 340
Amendment
of section 2
Cap. 321
Amendment
of section 3
Amendment
of section 4
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K8.00 each. GOVERNMENT OF ZAMBIA
ACT
No. 22 of 2020
Date of Assent: 18th December, 2020

om the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K8.00 each. GOVERNMENT OF ZAMBIA
ACT
No. 22 of 2020
Date of Assent: 18th December, 2020

344 No. 22 of 2020] Property Transfer Tax
(Amendment)
5.

344 No. 22 of 2020] Property Transfer Tax
(Amendment)
5.

Section 5 of the principal Act is amended by the—
(a) deletion of subsection (2A) and the substitution therefor
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) effective shareholding multiplied by the value of
the transferred shares;
(b) effective shareholding multiplied by the
consideration for the transferred shares; and
(c) effective shareholding multiplied by the nominal
value of the transferred shares.;
(b) insertion of the following new subsections immediately
after subsection (2A):
(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 effective 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 not apply to a company that has
not been part of the group of companies for at least three
years preceding the transfer.

pt
that this subsection shall not apply to a company that has
not been part of the group of companies for at least three
years preceding the transfer.

(2C) For the purposes of this section, effective
shareholding means the extent of control or ownership in
the company incorporated in the Republic by the company
incorporated outside the Republic expressed as a
percentage.; and
(c) renumbering of subsections (2B) and (2C) as (2D) and
(2E), respectively. 6. Section 6(1)(d) of the principal Act is amended by the deletion
of the words “or trust”. 7. Section 9 of the principal Act is amended by the deletion of
subsection (2) and the substitution therefor of the following:
Amendment
of section 5
Amendment
of section 6
Amendment
of section 9

by the deletion of
subsection (2) and the substitution therefor of the following:
Amendment
of section 5
Amendment
of section 6
Amendment
of section 9

(2) The provisional return referred to in subsection (1) shall
be—
(a) in Kwacha, except that where the transaction which is
the subject of the provisional return is in another currency
the values shall be converted into Kwacha at the
appropriate Bank of Zambia mid-rate as at the end of
the day immediately preceding the day on which the
provisional return is submitted; and
(b) submitted—
(i) in the case of land, to the Commissioner of Lands
together with the application for consent to
transfer the property; and
(ii) in all other cases, to the Commissioner-General
within thirty days of the transfer.
Property Transfer Tax [No. 22 of 2020 345
(Amendment)

346