The Property Transfer Tax (Amendment) Act, 2019

An Act to amend the Property Transfer Tax Act. [27th December, 2019
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Property Transfer Tax
(Amendment) Act, 2019, 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, 2020. 2. Section 2 (1) of the principal Act is amended by the deletion
of the definition of “share” and the substitution therefor of the
following:
“share” includes any stock, any certificate, warrant or
equivalent rights;. 3. 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 Zambia, the
realised value shall be, whichever is greater of the—
(a) proportion that the value of the Zambian
company bears to the value of the
transferred shares;
(b) consideration for the share being
transferred; or
(c) nominal value;
except that—
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ransferred shares;
(b) consideration for the share being
transferred; or
(c) nominal value;
except that—
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340
Amendment
of Section 2
Amendment
of section 5
GOVERNMENT OF ZAMBIA
ACT
No. 13 of 2019
Date of Assent: 27th December, 2019
Property Transfer Tax (Amendment) [No. 13 of 2019 381
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K4.00 each.

(i) where the Commissioner-General
is satisfied that a transfer with the
realised value is made for the
purposes of group reorganisation
and that there is no change in the
effective shareholding with respect
to the Zambian company, the
Commissioner-General may
determine a nil value for that
transfer; and
(ii) this section shall not apply to a
company that has not been part of
the group of companies for at least
three years.; and
(b) deletion of subsection (2C) and the substitution therefor of
the following:
(2C) The Commissioner-General, in determining the realised
value for shares, may make adjustments in accordance
with the provisions of sections 97A and 97C of the Income
Tax Act.
382 No. 13 of 2019] Property Transfer Tax (Amendment)
Cap. 323