The Income Tax (Amendment) Bill, 2016

Parliamentary Period: 
First Session of the Twelfth Assembly

The object of this Bill is to amend the Income Tax Act so as to -

(a) increase the pay as your earn tax free threshold for individuals from thirty - six thousand kwacha to thirty - nine thousand, six hundred per annum;

(b) increase the pay as you earn top marginal tax rate from thirty - five percent to thirty - seven point five percent;

(c) make it mandatory for all financial institutions to facilitate the acquisition of a taxpayer identification number by an account holder;

(d) provide for the Kwacha/United States Dollar exchange rate to be used in translating books of accounts;

(e) make it mandatory for a person changing ownership of a motor vehicle to obtain a tax clearance certificate;

(f) revise the turnover tax regime for persons carrying on business with annual turnover of eight hundred thousand kwacha or less;

(g) increast the rate of tax for the advance income tax from six percent to fifteen percent;

(h) extend the charge of tax on rental income to statutory bodies;

(i) allow deductions on the skills development levy as an expense; and

(j) provide for matters connected with, or incidental to, the forgoing.

Bill Stage: 
First Reading
Second Reading
Committee Stage
Third Reading