The Property Transfer Tax (Amendment) Act, 2022.

An Act to amend the Property Transfer Tax Act. [ 27th December, 2022
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Property Transfer Tax
(Amendment) Act, 2022, 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, 2023. 2. Section 2 of the principal Act is amended—
(a) by the deletion of the definitions of—
“property”and “share” and the substitution therefor
of the following definitions in the appropriate
places in alphabetical order:
“property” means—
(a) a land in the Republic;
(b) a share issued by a company incorporated
in the Republic or 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;
(c) a mining right issued under the Mines and
Minerals Development Act, 2015;
(d) a mineral processing licence issued under
the Mines and Minerals Development
Act, 2015; and
Enactment
Short title
and com-
mencement
Cap. 340
Amendment
of section 2
Act No. 11 of
2015
Act No. 11
of 2015
Property Transfer Tax
(Amendment) [No.

Enactment
Short title
and com-
mencement
Cap. 340
Amendment
of section 2
Act No. 11 of
2015
Act No. 11
of 2015
Property Transfer Tax
(Amendment) [No.

27 of 2022 555
GOVERNMENT OF ZAMBIA
ACT
No. 27 of 2022
Date of Assent: 23rd December, 2022
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K8.00 each.

of Assent: 23rd December, 2022
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K8.00 each.

(e) intellectual property; and
“share” includes a stock, certificate, warrant or
equivalent rights, and an interest in a mining right
or an interest in a mineral processing licence;
and
(b) by the insertion of the following new definition in the
appropriate place in alphabetical order:
“financial service provider” has the meaning assigned
to the words in the Banking and Financial
Services Act, 2017;. 3. Section 4 of the principal Act is amended by the deletion
of subsection (2) and the substitution therefor of the following:
(2) The rate of tax is —
(a) ten percent of the realised value in respect of a
mining right for a mining licence;
(b) five percent of the realised value in respect of a
mining right for an exploration licence;
(c) ten percent of the realised value in respect of a
mineral processing licence;
(d) five percent of the realised value in respect of land;
(e) five percent of the realised value in respect of
shares; and
(f) five percent of the realised value in respect of
intellectual property. 4.

land;
(e) five percent of the realised value in respect of
shares; and
(f) five percent of the realised value in respect of
intellectual property. 4.

Section 5 of the principal Act is amended by—
(a) the deletion of subsection (2A) and the substitution there-
for 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 the Republic,
the realised value shall be, whichever is greater of
the—
(a) proportion that the value of the company
incorporated in the Republic bears to
the value of the company whose shares
are being transferred multiplied by the
value of the transferred shares;
Act No. 7 of
2017
Amendment
of section 4
Amendment
of section 5
Property Transfer Tax
(Amendment)556 No. 27 of 2022]

value of the transferred shares;
Act No. 7 of
2017
Amendment
of section 4
Amendment
of section 5
Property Transfer Tax
(Amendment)556 No. 27 of 2022]

(b) proportion that the value of the company
incorporated in the Republic bears to
the value of the company whose shares
are being transferred multiplied by the
consideration for the transferred shares;
and
(c) proportion that the value of the company
incorporated in the Republic bears to
the value of the company whose shares
are being transferred multiplied by the
nominal value of the transferred
shares.;
(b) the deletion of subsection (2B) and the substitution there-
for of the following:
(2B) Despite subsection (2A), where the
Commissioner-General is satisfied that a transfer is
made for the purpose of group reorganisation and
that there is no change in the shareholding with respect
to the company incorporated in the Republic, the
Commissioner-General may determine a nil value for
that transfer, except that this subsection shall only
apply to a company that has been part of the group
of companies for three years or more preceding the
transfer.;
(c) the deletion of subsection (2C);
(d) the renumbering of subsections (2D) and (2E) as
subsections (2C) and (2D), respectively;
(e) the deletion of subsection (3) and the substitution therefor
of the following:
(3) Where the property to be valued is an
intellectual property or a mining right, the realised
value of the intellectual property or mining right shall
be the actual price of the intellectual property or
mining right or as determined by the Commissioner-
General, whichever is higher.; and
(f) the insertion of the following new subsection immediately
after subsection (5):
(5A) Where a financial service provider trans-
fers a foreclosed property, the realised value of the
property shall be the actual price, if any, received by
the financial service provider.

r trans-
fers a foreclosed property, the realised value of the
property shall be the actual price, if any, received by
the financial service provider.

Property Transfer Tax
(Amendment) [No. 27 of 2022 557

5. Section 6 (1) of the principal Act is amended by the insertion
of the following new paragraph immediately after paragraph (g):
(h) the surrender or forfeiture of shares for no consideration,
except that a subsequent transfer to a different person
shall be liable to tax.
6. Section 9 of the principal Act is amended—
(a) in subsection (2)(b), by the deletion of subparagraph (i)
and the substitution therefor of the following:
(i) in the case of land, to the Commissioner-General
together with the consent to transfer or assign
issued under the Lands Act; and;
(b) by the deletion of subsection (3); and
(c) by the renumbering of subsections (4), (5), (6) and (7) as
subsections (3), (4), (5) and (6), respectively.
Amendment
of section 6
Amendment
of section 9
Cap. 184
558 No. 27 of 2022]
Property Transfer Tax
(Amendment)