INSURANCE PREMIUM LEVY ACT
Arrangement of Sections
Section
3. Powers of Commissioner-General
AN ACT
to provide for the imposition, payment and collection of an insurance premium levy; and to provide for matters connected with, or incidental to, the foregoing.
[1st January, 2016]
Act 21 of 2015,
Act 15 of 2017
{mprestriction ids="2,3,5"}
Act 16 of 2018,
Act 47 of 2021.
This Act may be cited as the Insurance Premium Levy Act.
In this Act, unless the context otherwise requires-
"broker" has the meaning assigned to it in the Insurance Act;
"Commissioner-General" has the meaning assigned to it in the Zambia Revenue Authority Act;
"electronic fiscal device" has the meaning assigned to the words in the Value Added Tax Act;
[Ins by s 2 of Act 16 of 2018.]
"insurance agent" has the meaning assigned to it in the Insurance Act;
"insurance business" has the meaning assigned to it in the Insurance Act;
"insurer" has the meaning assigned to it in the Insurance Act;
"levy" means the insurance premium levy charged under section 4; and
"policy" has the meaning assigned to it in the Insurance Act.
3. Powers of Commissioner-General
The Commissioner-General shall, subject to the direction of the Minister, give effect to the provisions of this Act and shall, for that purpose, have all the powers conferred on the Commissioner-General by the Zambia Revenue Authority Act and the Value Added Tax Act.
(1) A five per cent levy shall be charged, levied, collected and paid, on insurance premiums in respect of insurance policies for all classes of insurance business carried on by insurers, insurance agents or brokers except reinsurance.
[S 4(1) am by s 2 of Act 15 of 2017; s 2 of Act 47 of 2021 w.e.f. 1 January 2022.]
(2) Value added tax is not payable on an insurance premium.
(3) An insurer, an insurance agent or a broker shall use an electronic fiscal device to record a payment of the levy and issue a tax invoice generated by the electronic fiscal device to a person that pays the levy.
[S 4(3) ins by s 3 of Act 16 of 2018.]
The levy is due at the time when an insurance premium is paid or becomes payable and shall be remitted by the insurer, insurance agent or broker to the Commissioner-General not later than the eighteenth day of the next month following the month in which the levy becomes due.
[S 5 am by s 4 of Act 16 of 2018.]
The Minister may, by statutory instrument, exempt any person from the payment of the levy.
Subject to the provisions of this Act, the Value Added Tax Act applies, with necessary changes, to this Act in respect of-
(a) the recovery of the levy;
(b) the filing of returns;
(c) assessments;
(d) the keeping of records;
(e) the furnishing of information and production of documents;
(f) delegation of authority;
(g) the appointment of authorised officers;
(h) penalties and sanctions;
(i) reviews and appeals; and
(j) the priority of tax debts in bankruptcy.
The Minister may, by statutory instrument, make regulations for the proper administration of this Act.
The Commissioner-General may, by notice in the Gazette, make administrative rules for the proper administration of this Act.
{/mprestriction}