The Income Tax (Amendment) Act, 2023

Income Tax (Amendment) [No. 22 of 2023 401
An Act to amend the Income Tax Act. [ 26th December, 2023
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Income Tax (Amendment)
Act, 2023, 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, 2024. 2. Section 2(1) of the principal Act is amended by the—
(a) deletion of the definition of “electronic fiscal device”;
(b) deletion of the definition of “rural enterprise” and the
substitution therefor of the following:
“rural enterprise” means an enterprise located in a
rural area except an enterprise carrying on
business of mining operations or mineral
processing;; and
(c) insertion of the following new definitions in the appropriate
places in alphabetical order:
“electronic invoicing system” has the meaning
assigned to the words in the Value Added Tax Act;
and
“special economic zone” has the meaning assigned
to the words in the Investment, Trade and Business
Development Act, 2022;. Enactment
Short title
and
commence-
ment
Cap. 323
Amendment
of section 2
Cap. 331
Act No. 18 of
2022
GOVERNMENT OF ZAMBIA
ACT
No.

elopment Act, 2022;. Enactment
Short title
and
commence-
ment
Cap. 323
Amendment
of section 2
Cap. 331
Act No. 18 of
2022
GOVERNMENT OF ZAMBIA
ACT
No.

22 of 2023
Date of Assent: 22nd December, 2023
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K12.00 each.

of Assent: 22nd December, 2023
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K12.00 each.

402 No. 22 of 2023] Income Tax (Amendment)
3. The principal Act is amended by the deletion of section 45
and the substitution therefor of the following:
45. (1) A person shall obtain a taxpayer identification
number from the Authority. (2) A person carrying on a business in partnership shall
obtain a taxpayer identification number for that partnership
from the Authority. (3) A person or partnership shall, within thirty days
from first receiving income liable to tax under this Act,
register with the Authority for an appropriate tax type. 4. Section 48 of the principal Act is amended by the deletion of
subsection (1) and the substitution therefor of the following:
(1) Despite any other written law, the Commissioner-
General may request a person to furnish to the
Commissioner-General information, whether relating to the
affairs of that person or any other person that the
Commissioner-General determines is necessary for the
purposes of this Act. 5.

ther relating to the
affairs of that person or any other person that the
Commissioner-General determines is necessary for the
purposes of this Act. 5.

Section 55B of the principal Act is amended by the—
(a) deletion of subsections (1) and (2) and the substitution
therefor of the following:
(1) A person or partnership carrying on a
business shall use an electronic invoicing system to
record sales for income tax purposes. (2) Despite subsection (1), the Commissioner-
General may approve the use of a document, device
or equipment, other than an electronic invoicing
system, for a certain category of persons or
partnerships carrying on business.; and
(b) insertion of the following new subsection immediately after
subsection (2):
(2A) The Commissioner-General may, on
prescribed conditions, exempt a person or partnership
or a category of persons or partnerships from using
the electronic invoicing system. Amendment
of section
45
Amendment
of section
48
Amendment
of section
55B
Taxpayer
identification
number and
registration
for tax type

nvoicing system. Amendment
of section
45
Amendment
of section
48
Amendment
of section
55B
Taxpayer
identification
number and
registration
for tax type

Income Tax (Amendment) [No. 22 of 2023 403
6. Section 56 of the principal Act is amended by the insertion
of the following new subsection immediately after subsection (1):
(1A) The accounts referred to in subsection (1) shall,
in the case of a person classified as a large taxpayer by
the Authority, be audited accounts. 7. Section 82A of the principal Act is amended by the deletion
of subsection (11) and the substitution therefor of the following:
(11) The payment of an amount in excess of the
original issue price for any treasury bill or similar financial
instrument sold at a discount from face value shall be
considered for the purposes of this section to be payment
of interest when the treasury bill or any other similar
financial instrument is presented for redemption or
rediscount. 8. Section 97A of the principal Act is amended by the insertion
of the following new subsection immediately after subsection (11A):
(11B) The date of assessment referred to under
subsection (11A) shall, where a decision under this section
is appealed against or is before a court, be considered to
be the date on which the decision on appeal is given or the
final ruling is rendered by a court. 9.

led against or is before a court, be considered to
be the date on which the decision on appeal is given or the
final ruling is rendered by a court. 9.

Section 100(1)(e) of the principal Act is amended by the—
(a) insertion of the following new subparagraph immediately
after subparagraph (iv):
(v) in relation to artisanal mining—
(a) in the case of negligence, one-point five
percent of the amount;
(b) in the case of wilful default, three percent
of the amount; and
(c) in the case of fraud, four-point five percent
of the amount;; and
(b) renumbering of subparagraph (v) as subparagraph (vi). Amendment
of section
56
Amendment
of section
82A
Amendment
of section
97A
Amendment
of section
100

numbering of subparagraph (v) as subparagraph (vi). Amendment
of section
56
Amendment
of section
82A
Amendment
of section
97A
Amendment
of section
100

404 No. 22 of 2023] Income Tax (Amendment)
10. The Fifth Schedule to the principal Act is amended in
paragraph 10, by the deletion of subparagraph (6) and the insertion
of the following new subparagraph:
(6) Despite the other provisions of this Act, a person
operating a business in a priority sector and a developer in
a special economic zone, may claim on a straight-line basis,
wear and tear at an accelerated rate, not exceeding 100
percent in respect of any new implement, plant or
machinery acquired and used by the business for the
purposes of that business. 11.

not exceeding 100
percent in respect of any new implement, plant or
machinery acquired and used by the business for the
purposes of that business. 11.

The Charging Schedule to the principal Act is amended—
(a) in paragraph 2(1)—
(i) item (c), by the deletion of the words “fifty-seven
thousand six hundred Kwacha” and the
substitution therefor of the words “sixty-one
thousand two hundred Kwacha”;
(ii) by the deletion of items (d), (e) and (f) and the
substitution therefor of the following:
(d) on the balance of so much of an
individual’s income as exceeds sixty-
one thousand two hundred Kwacha
but does not exceed eighty-five
thousand two hundred Kwacha, at
the rate of twenty percent per
annum;
(e) on the balance of so much of an
individual’s income as exceeds
eighty-five thousand two hundred
Kwacha but does not exceed one
hundred and ten thousand four
hundred Kwacha, at the rate of
thirty percent per annum; and
(f) on the balance of so much of an
individual’s income as exceeds one
hundred and ten thousand four
hundred Kwacha, at the rate of
thirty-seven percent per annum.;
and
Amendment
of Fifth
Schedule
Amendment
of Charging
Schedule

d and ten thousand four
hundred Kwacha, at the rate of
thirty-seven percent per annum.;
and
Amendment
of Fifth
Schedule
Amendment
of Charging
Schedule

Income Tax (Amendment) [No. 22 of 2023 405
(b) in paragraph 5—
(i) item (a), by the deletion of the words “one-seventh”
and the substitution therefor of the words “one-
fifth”; and
(ii) by the insertion of the following new items
immediately after item (l):
(m) maximum rate of tax charged on the
income earned by a producer of cotton
seed or from ginning of cotton shall be
zero percent for the first five charge
years for which that business is carried
on; and
(n) maximum rate of tax charged on the
income earned from spinning of cotton
and weaving of thread shall be zero
percent for the first ten charge years
for which that business is carried on.

406