The Income Tax (Amendment)

Income Tax (Amendment)(No. 2) [No. 19 of 2015 445
GOVERNMENT OF ZAMBIA
ACT
No. 19 of 2015
Date of Assent: 17th December, 2015
An Act to amend the Income Tax Act. [ 24th December, 2015
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Income Tax (Amendment)
(No. 2) Act, 2015, and shall be read as one with the Income Tax
Act, in this Act referred to as the principal Act. (2) This Act shall come into operation on 1st January, 2016. 2. Section two of the principal Act is amended in subsection
(1) by—
(a) the deletion of the definition of “ hydro and thermo power
generation ”;
(b) the deletion, in the definition of “ retirement age ”, of the
word “ fifty-five ” and the substitution therefor of the
word “ sixty ”; and
(c) insertion, in the appropriate place, of the following new
definition:
“ electricity generation ” means the production of
electrical energy using physical and non-
physical sources of energy such as water, wind,
solar, petroleum, coal, biomass and any other
source of energy except wood. 3.

using physical and non-
physical sources of energy such as water, wind,
solar, petroleum, coal, biomass and any other
source of energy except wood. 3.

Section twenty-one of the principal Act is amended in
paragraph (b) of subsection (5) by the insertion, immediately after
the words “ normal retirement ”, of a comma and the words “ late
retirement ”. Enactment
Short title
and
Commencement
Cap. 323
Amendment
of section 2
Amendment
of section
21
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K 6.00 each.

tion 2
Amendment
of section
21
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K 6.00 each.

446 No. 19 of 2015 ] Income Tax (Amendment)(No. 2)
4. Section thirty of the principal Act is amended in paragraph
(a) of subsection (3) by the deletion of the words “ hydro and
thermo power ” and the substitution therefor of the word “ electricity ”. 5. Section forty-three B of the principal Act is amended in
subsection (1) by the deletion of the words “ section sixty-six of
the Mines and Minerals Act ” and the substitution therefor of the
words “ the Mines and Minerals Development Act, 2015 ”. 6. Section forty-six of the principal Act is amended by the—
(a) deletion of subsection (3) and the substitution therefor of
the following:
(3) The return referred to in subsection (1) shall
be furnished to the Commissioner-General—
(a) in the case of an electronic return, not later than
30th June following the end of any charge year;
and
(b) in the case of a manual return, not later than 5th
June following the end of any charge year.; and
(b) deletion of subsection (4) and the renumbering of
subsection (5) as (4). 7.

rn, not later than 5th
June following the end of any charge year.; and
(b) deletion of subsection (4) and the renumbering of
subsection (5) as (4). 7.

Section forty-six A of the principal Act is amended in
subsection (3) by the deletion of paragraph (a) and the substitution
therefor of the following:
(a) in any charge year —
(i) in the case of an electronic return, not later
than 31st March of the charge year to which the return
relates; and
(ii) in the case of a manual return, not later than
5th March of the charge year to which the return
relates. 8. Section seventy-seven of the principal Act is amended by
the insertion immediately after subsection (4) of the following:
(4A) Any tax payable by a person on the income received
from letting property is due and payable within fourteen days
after the end of the month in which the income is received as
provided in section five. Amendment
of section
30
Amendment
of section
43B
Amendment
of section 46
Amendment
of section
46A
Amendment
of section 77
Act No. 11
of 2015

ion five. Amendment
of section
30
Amendment
of section
43B
Amendment
of section 46
Amendment
of section
46A
Amendment
of section 77
Act No. 11
of 2015

9. Section eighty-one B of the principal Act is amended by
the deletion —
(a) of subsections (2) and (3) and the substitution therefor of
the following:
(2) A person, institution or authority
empowered to issue a trading licence under any
written law shall not issue the trading licence to an
applicant unless the applicant produces a tax clearance
certificate. (3) A person, institution or authority
empowered to issue an exploration licence, mining
licence, mineral processing licence, gold panning
certificate, mineral trading permit or mineral import
or export permit under the Mines and Minerals
Development Act, 2015, shall not issue the licence,
certificate or permit to the applicant unless the
applicant produces a tax clearance certificate.; and
(b) in subsection (7), of the definition of “ mining licence ”. 10.

t to the applicant unless the
applicant produces a tax clearance certificate.; and
(b) in subsection (7), of the definition of “ mining licence ”. 10.

Section eighty- two A of the principal Act is amended in—
(a) subsection (1) by the deletion of paragraphs (a) and (g)
and the substitution therefor of the following:
(a) a management or consultant fee from a source
within or deemed under section eighteen to be
from a source within the Republic;
(g) winnings from gaming, lotteries and betting other
than winnings received by an individual by virtue
of employment or office; and
(b) subsection (2) by the deletion of paragraphs (b) and (c)
and the substitution therefor of the following:
(b) the payment of an amount in excess of the original
issue price for a treasury bill sold at a discount
from face value shall be deemed for the
purposes of this section to be payment of interest
when the treasury bill is presented for
redemption or rediscount;
(c) the Commissioner-General may determine that
the provisions of paragraph (a), (b), (c) or (d)
of subsection (1) do not apply in a particular
case and shall, in writing, notify the person or
[No. 19 of 2015 447Income Tax (Amendment)(No. 2)
Amendment
of section
82A
Amendment
of section
81B
Act No. 11
of 2015

in writing, notify the person or
[No. 19 of 2015 447Income Tax (Amendment)(No. 2)
Amendment
of section
82A
Amendment
of section
81B
Act No. 11
of 2015

partnership concerned that the provisions of
paragraph (a),(b), (c) or (d) of subsection (1),
as applicable, do not apply to that person or
partnership to the extent and to the period
specified in the notification;. 11. The principal Act is amended by the repeal of section one
hundred and eleven and the substitution therefor of the following:
111. A person dissatisfied with a decision of the
Tribunal may appeal against the decision in accordance
with the Tax Appeals Tribunal Act, 2015. 12. Section one hundred and twelve of the principal Act is
amended in subsection (2) by the deletion of the words “ the High
Court or ”. 13. The First Schedule to the principal Act is amended by the
deletion of paragraph 9 and the substitution therefor of the following:
(9) Amounts refunded to any person carrying on mining
operations pursuant to paragraph (a) of subsection 4 of
section eighty-six of the Mines and Minerals
Development Act, 2015, shall be deemed to be income
in the year that the refund is made. 14.

section 4 of
section eighty-six of the Mines and Minerals
Development Act, 2015, shall be deemed to be income
in the year that the refund is made. 14.

The Fourth Schedule to the principal Act is amended
(a) in paragraph 2 by the deletion—
(i) in item (ii) of clause (b) of subparagraph (2), of
the figure “ 55” and the substitution therefor of
the figure “ 60 ”; and
(ii) in item (iii) of clause (a) of subparagraph (3), of
the figure “ 55” wherever it appears and the
substitution therefor of the figure “ 60 ”; and
(b) in paragraph 4 by the deletion—
(i)in clause (b) of subparagraph (3), by the deletion
of the figure “ 55 ” and the substitution therefor
of the figure “ 60 ”; and
(ii) in clause (c) of subparagraph (3), by the deletion
448 No. 19 of 2015 ] Income Tax (Amendment) (No. 2)
Repeal and
replacement
of section
111 Appeals
from Tax
Appeals
Tribunal
Act No.1
of 2015
Amendment
of
section 112
Amendment
of the
First
Schedule
Amendment
of the Fourth
Schedule
Act No 11
of 2015

from Tax
Appeals
Tribunal
Act No.1
of 2015
Amendment
of
section 112
Amendment
of the
First
Schedule
Amendment
of the Fourth
Schedule
Act No 11
of 2015

of the figure—
(aa) “ 55 ” and the substitution therefor of
the figure “ 60 ”; and
(bb) “ 50 ” and the substitution therefor of
the figure “ 55 ”. 15. The Fifth Schedule to the principal Act is amended—
(a) in subparagraph (5) of paragraph 10 by the insertion,
immediately after the word “ in ”, of the words “
electricity generation,”; and
(b) in subparagraph (3) of paragraph 22 by the deletion of
the words “ one hundred and twenty two of the Mines
and Minerals Development Act, 2008 ” and the
substitution therefor of the words “ eighty-six of the
Mines and Minerals Development Act, 2015 ”. 16. The Charging Schedule to the principal Act is amended—
(a) in subparagraph (1) of paragraph 3 by the deletion of
clause (a) and the substitution therefor of the following:
(a) on the income of any company whose shares are
listed on the Lusaka Stock Exchange in the first
year of its listing, at the rate of two per cent
below the rates specified—
(i) in clauses (b), (c), (d) and (e) of this
subparagraph; and
(ii) in clauses (b), (c) and (d) of paragraph 5:
Provided that—
A.

the rates specified—
(i) in clauses (b), (c), (d) and (e) of this
subparagraph; and
(ii) in clauses (b), (c) and (d) of paragraph 5:
Provided that—
A.

a company whose shares
were listed on the Lusaka
Stock Exchange prior to 1st
April, 2004, shall not qualify
for the tax incentive
referred to in this clause;
B. where a company, whose
shares are listed on the
Lusaka Stock Exchange on
or after 1st April, 2004,
offers and sells one third of
its shares to indigenous
Zambians in the year of
[No. 19 of 2015 449Income Tax (Amendment) (No. 2)
Amendment
of the
Charging
Schedule
Amendment
of the Fifth
Schedule
Act No. 11 of
2015
Act No. 7 of
2008

. 19 of 2015 449Income Tax (Amendment) (No. 2)
Amendment
of the
Charging
Schedule
Amendment
of the Fifth
Schedule
Act No. 11 of
2015
Act No. 7 of
2008

listing, the income of that company shall
be charged at an additional discounted
rate of five per cent below the rates
specified—
(i) in clauses (b), (c), (d) and (e) of
this subparagraph; and
(ii) in clauses (b), (c) and (d) of
paragraph 5;and
C. where a company, whose shares are listed
on the Lusaka Stock Exchange on or after
1st April, 2004, offers and sells one third
of its shares to indigenous Zambians, the
income of that company shall be charged
at a rate of five per cent below the rates
specified—
(i) in clauses (b), (c), (d) and (e) of
this subparagraph; and
(ii) in clauses (b), (c) and (d) of
paragraph 5;
for the period that the one-third of the
company’s shares are owned by
indigenous Zambians; and
(b) in paragraph 5 by the insertion of the following new clause:
(g) the maximum rate of tax for income received by a person
from the letting of property shall be ten percent per annum.
450 No. 19 of 2015 ] Income Tax (Amendment) (No. 2)

f tax for income received by a person
from the letting of property shall be ten percent per annum.
450 No. 19 of 2015 ] Income Tax (Amendment) (No. 2)

This printed impression has been carefully compared by me with the Bill
which has passed the National Assembly, and found by me to be a true and
correctly printed copy of the said Bill.
Signed......................................................
Speaker/Deputy Speaker/
Clerk of the National Assembly
Date of Authentication: