The Property Transfer (Amendment)

An Act to amend the Property Transfer Tax Act. [22nd December, 2017
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Property Transfer Tax
(Amendment) Act, 2017, 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, 2018. 2. Section 2(1) of the principal Act is amended—
(a) by the insertion of the following definitions in the
appropriate places:
“intellectual property” includes a patent, trade mark,
copyright or industrial design; and
“related company” includes—
(a) companies connected directly or indirectly
through shareholding or equity;
(b) any joint venture owned or operated jointly with
or an unrelated company;
(c)connected companies; or
(d) companies connected through management and
control; and
(b) in the definition of “property” by the—
Property Transfer (Amendment) [No. 11 of 2017 635
Short title
and
commencement
Cap. 340
Amendment
of section 2
Enactment
GOVERNMENT OF ZAMBIA
ACT
No. 11 of 2017
I hereby signify my assent to the Bill
Date of Assent: 19th December, 2017
Single copies of this Act may be obtained from the Government Printer,
P. O.

hereby signify my assent to the Bill
Date of Assent: 19th December, 2017
Single copies of this Act may be obtained from the Government Printer,
P. O.

Box 30136, 10101 Lusaka. Price K8.00 each

Box 30136, 10101 Lusaka. Price K8.00 each

(i) deletion of paragraph (b) and the substitution
therefor of the following:
(b) a share issued by a company
incorporated in the Republic or a share
issued by a company incorporated
outside the Republic where the
company directly or indirectly owns at
least ten percent of the shares in a
company incorporated in the Republic.;
and
(ii) insertion of the following paragraph immediately
after paragraph (c):
(d) intellectual property;
3. Section 4 of the principal Act is amended by the—
(a) insertion of the following new subsection
immediately after 4(1):
(1A) in the case of the transfer of a share issued by
a company incorporated outside the Republic
where that company directly or indirectly owns
at least ten percent of a company incorporated
in Zambia, tax shall be charged and collected
from the Zambian incorporated company.; and
(b) insertion of the following new paragraph immediately
after paragraph (c)—
(d) five percent of the realised value in respect of
intellectual property. 4.

sertion of the following new paragraph immediately
after paragraph (c)—
(d) five percent of the realised value in respect of
intellectual property. 4.

Section 5 of the principal Act is amended by the—
(a) deletion of subsection (2) and the substitution therefor of
the following:
(2) Where the property to be valued is a share
issued by a company incorporated in the Republic,
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.;
(b) insertion of the following new subsections immediately
after subsection (2):
(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
636 No. 11 of 2017] Property Transfer (Amendment)
Amendment
of section 5
Amendment
of section 4

Republic that directly or indirectly owns at least ten
636 No. 11 of 2017] Property Transfer (Amendment)
Amendment
of section 5
Amendment
of section 4

percent of a company incorporated in Zambia, the
realised value shall be the proportion that the value
of the Zambian entity bears to the value of the
transferred shares. (2B) For the purposes of this Act, a share,
that is registered outside the Republic and that is
transferred by a related company is deemed to have
been a transfer by a company incorporated in Zambia
if before the transaction, the company incorporated
in Zambia was indirectly owned by a related company. (2C) The Commissioner-General, in
determining the realised value for shares, may make
adjustments in accordance with the provisions of
sections 97A, 97AA, 97C and Paragraph 22A of the
Fifth Schedule to the Income Tax Act.; and
(c) the deletion of subsection (3) and the substitution therefor
of the following:
(3) Where the property to be valued is intellectual
property or a mining right or an interest in a
mining right, the realised value of the intellectual
property or mining right or interest shall be the
actual price of the intellectual property or mining
right or interest or as determined by the
Commissioner- General, whichever is higher. 5.

ll be the
actual price of the intellectual property or mining
right or interest or as determined by the
Commissioner- General, whichever is higher. 5.

Section 11 of the principal Act is amended by the insertion
of the following subsection immediately after subsection (3):
(4) The Commissioner-General may remit the whole or
part of any penalty and interest due under this Section. 6. The principal Act is amended by the insertion of the following
section immediately after section 12 A:
12B (1)A company shall, within one month after
another company has become related to it, lodge with the
Commissioner-General a notice of that fact together with
particulars identifying that company. (2) If a company fails to comply with this section, the
company, and each officer in default, commits an offence
and is liable, on conviction to a penalty not exceeding ten
thousand penalty units for each day that the failure continues. Property Transfer (Amendment) [No. 11 of 2017 637
Cap. 323
Amendment
of section 11
Insertion of
section 12B
Disclosure
of
information

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