The Property Transfer Tax (Amendment) Act (2012)

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Property Transfer Tax (Amendment) [No. 13 of2012 229

GOVERNMENT OF ZAMBIA

ACT

No. 13 of 2012

Date of Assent: 19th December, 2012

An Act to amend the Property Transfer Tax Act.

[21st December, 2012

ENACTED by the Parliament of Zambia.

1. (1) This Act may be cited as the Property Transfer Tax
(Amendment) Act, 2012, 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, 2013.

2. Section two of the principal Act is amended in subsection
(1) —

(a) by the insertion, in the appropriate places, of the following
new definitions:

“group of companies” means a holding company
together with all its subsidiaries;

“holding company” means a company that—

(a) holds the majority of the voting rights in
another company;

(b) is a member of another company and
controls a majority of the voting rights on
its own or pursuant to an agreement
entered into with the other members; or

(c) is a member of another company and
controls, and has the right to appoint or
remove a majority of, the board of
directors in that other company; and

) is a member of another company and
controls, and has the right to appoint or
remove a majority of, the board of
directors in that other company; and

“mining right” has the meaning assigned to it
in the Mines and Minerals Development Act,
2008; and

(b) by the deletion of the definition of “property” and the
substitution therefor of the following:

Single Copies of this Act can be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka Price K2,000 each

Enactment
Short title and
commencement
Cap. 340
Amendment
of section 2
Act No. 7 of
2008

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230  No. 13 of 2012]          Property Transfer Tax (Amendment)

                         “property” means—
                                 (a) any land in the Republic;
                                 (b) any share issued by a company incorporated
                                      in the Republic; or
                                 (c) a mining right issued under the Mines and
                                      Minerals Development Act, 2008, or an
                                      interest therein.

nder the Mines and
                                      Minerals Development Act, 2008, or an
                                      interest therein.

Act No. 7 of    3. Section four of the principal Act is amended by the deletion
           2008    of subsection (2) and the substitution therefor of the following:
                             (2) The rate of tax shall be five percent of the realised
                        value of the land or shares and in the case of a mining right
                        or an interest in the mining right, ten percent of the realised
                        value of the mining right.

ining right
                        or an interest in the mining right, ten percent of the realised
                        value of the mining right.

Amendment     4. Section five of the principal Act is amended—
     of section 4                  (a) by the insertion immediately after subsection (2) of the
                                         following new subsection:
                                        (3) Where the property to be valued is a mining
                                     right or an interest in a mining right, the realised value
                                     of the mining right or interest shall be the actual price
                                     of the mining right or interest at the time of the transfer
                                     of that mining right or interest or as determined by
                                     the Commissioner-General, whichever is higher.; and
                                    (b) by the re-numbering of subsections (3), (4) and
                                         (5) as subsections (4), (5) and (6) respectively.

(b) by the re-numbering of subsections (3), (4) and
                                         (5) as subsections (4), (5) and (6) respectively.

Amendment     4. Section five of the principal Act is amended—
     of section 4                  (a) by the insertion immediately after subsection (2) of the
                                         following new subsection:
                                        (3) Where the property to be valued is a mining
                                     right or an interest in a mining right, the realised value
                                     of the mining right or interest shall be the actual price
                                     of the mining right or interest at the time of the transfer
                                     of that mining right or interest or as determined by
                                     the Commissioner-General, whichever is higher.; and
                                    (b) by the re-numbering of subsections (3), (4) and
                                         (5) as subsections (4), (5) and (6) respectively.     Amendment       5.

umbering of subsections (3), (4) and
                                         (5) as subsections (4), (5) and (6) respectively.     Amendment       5.

Section nine of the principal Act is amended—
    of section 5                  (a) by the insertion immediately after subsection (4) of the
                                        following new subsection:
                                        (5) Notwithstanding any other written law,
                                    the Minister responsible for mines, the Director of
                                    Mines or the Director of Geological Survey, as
                                    applicable, shall not approve the transfer,
                                    assignment, encumbrance or other dealing with a
                                    mining right or interest therein, if the transferor
                                    fails to pay the tax due in respect of the transfer,
                                    assignment, encumbrance or other dealing with a
                                    mining right or interest therein, under this Act; and
                                   (b) by the re-numbering of subsections (5) and (6) as
                                        subsections (6) and (7) respectively. Amendment       6.

(b) by the re-numbering of subsections (5) and (6) as
                                        subsections (6) and (7) respectively. Amendment       6.

The principal Act is amended by the insertion, immediately
   of section 9    after section twelve of the following new section:

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Property Transfer Tax (Amendment)  [No. 13 of 2012 231

12A. (1) The President may enter into an agreement, which may have retrospective effect, with the Government of any other country or territory for the exchange of information on tax matters or for mutual assistance in tax matters with the objective of rendering reciprocal assistance in the—
(a) provision of data on fraud, civil and criminal tax offences;
(b) administration and collection of taxes under the property transfer tax laws of the Republic and such other country or territory;
(c) carrying out of tax examinations in Zambia or abroad; and
(d) carrying out of simultaneous or joint tax examinations.

other country or territory;
(c) carrying out of tax examinations in Zambia or abroad; and
(d) carrying out of simultaneous or joint tax examinations.

(2) Any information received by a country or territory under an agreement entered into under subsection (1) shall be treated as secret in the same manner as information obtained under the domestic laws of that country or territory and shall be disclosed only to persons or authorities involved in the assessment, collection enforcement, prosecution or determination of appeals in relation to, the taxes under this Act.

(3) Subsection (1) shall not be construed so as to impose on a country or territory the obligation to—
(a) carry out administrative measures at variance with the laws and administrative practices of that country or territory;
(b) supply information which is not obtainable under the laws of that country or territory or under the laws of Zambia; or
(c) supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy.

(4) The Minister shall lay a copy of an agreement referred to in subsection (1) before Cabinet for approval.

hich would be contrary to public policy.

(4) The Minister shall lay a copy of an agreement referred to in subsection (1) before Cabinet for approval.

(5) The President shall, as soon as practicable after the conclusion and approval of any agreement under this section, notify the public of the terms of the agreement by statutory instrument, 

Insertion of 
new section
12A
Tax 
information
exchange
agreements
and mutual
assistance in
tax matters

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232    No. 13 of 2012]    Property Transfer Tax (Amendment)

and the agreement shall, from the date of commencement of the 
statutory instrument, have effect as if enacted under this Act as
long as the agreement has the effect of law in the other country or
territory.