The Income Tax (Amendment) Act, 2015

Link to law: http://www.parliament.gov.zm/node/4543

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The Income Tax (Amendment) Act, 2015.pmd
An Act to amend the Income Tax Act.

[14th August, 2015
ENACTED by the Parliament of Zambia.

1. (1) This Act may be cited as the IncomeTax (Amendment)
Act, 2015, 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 July, 2015.

2. Section two of the principal Act is amended by the deletion,
in subsection (1), of the definitions of “mining operations” and
“mineral processing” and the substitution therefor of the following:

“ mining operations ” means an operation carried out under a
mining right, excluding an operation carried out under a
mineral processing licence only or an exploration licence;

“ mineral processing ” has the meaning assigned to it in the
Mines and Minerals Development Act, 2015.

3. The principal Act is amended by the insertion, immediately
after section twenty-two, of the following new section:

22A. The Commissioner-General may, for the
purposes of determining assessable income relating to
mineral processing and mining operations for the charge
year 2015, determine the appropriate apportionment basis.

4. The principal Act is amended by the deletion of section
thirty and the substitution therefor of the following:

The Income Tax (Amendment) [No. 6 of 2015 143

Enactment

Short title and
commence-
ment
Cap. 323

Amendment
of section 2

Act No. 11
of 2015

Insertion of
section 22A

Assessable
income

Repeal and
replacement
of section 30

GOVERNMENT OF ZAMBIA

ACT
No. 6 of 2015

Date of Assent: 14th August, 2015

Single copies of this Act may be obtained from the Government Printer
P.O. Box 30136, 10101 Lusaka. Price K4.00

144 No. 6 of 2015] The Income Tax (Amendment)

30. (1) A loss incurred by a person in a charge year
from —

(a) a source other than a mining operation, shall be
deducted from that person’s income from the
same source on which the loss was incurred;
and

(b) a mining operation, shall be deducted from fifty
percent of the income of the person from the
mining operation.

(2) Where a loss referred to in —
(a) paragraph (a) of subsection (1) exceeds the

income of a person for a charge year, the
excess shall, as far as possible, be deducted
from that person’s income from the same
source on which the loss was incurred in
the following charge year; and

(b) paragraph (b) of subsection (1) exceeds fifty
percent of the income from a mining
operation for a charge year, the excess
shall, as far as possible, be deducted from
fifty percent of that person’s income from
the mining operation in the following
charge year.

(3) Subject to subsection (1) and (2), a loss incurred
by a person —

(a) carrying on a mining operation or hydro and
thermo power generation, shall not be
carried forward beyond ten subsequent
charge years after the charge year in
which the loss is incurred; and

(b) in any other case shall not be carried forward
beyond five subsequent years after the
charge year in which the loss was incurred.

(4) Losses brought forward as at 31st March, 1997,
shall be deemed to have been incurred in the charge year
ending 31st March, 1997.

(5) Where on the death of an individual, interest in a
business passes to that individual’s spouse, any undeducted
loss attributable to that interest shall be deducted from the
spouse’s income from that business in accordance with
subsection (2).

Losses

5. The Charging Schedule to the principal Act is amended by
the deletion of subparagraphs (e), (f) and (g) of paragraph 3 and
the substitution therefor of the following:

(e) on income from mineral processing, at the rate of thirty-
five percent;

(f) where the income from a mining operation does not exceed
eight percent of the gross sales, at the rate of thirty
percent; and

(g) where the income from a mining operation exceeds eight
percent of the gross sales, at the rate determined in
accordance with the following formula:

Y=30% + [a – (ab/c)]

Where –

Y= the tax rate to be applied per annum;

a= 15%

b= 8%; and

c= the percentage ratio of the assessable
income to gross sales

Amendment
to Charging
Schedule

The Income Tax (Amendment) [No. 6 of 2015 145

146