Personal

PERSONAL, COMPANY, DOMESTIC SALES,

AND CAPITAL GAINS TAXES RATES

• Personal Income Tax

Individuals who earned income of between D0.00 to D7,500.00 per annum (D625.00 per month) are taxed at a zero rated percent. Therefore those who earned income of less than D7,500.00 per annum (D625.00 per month) are not subject to pay tax provided they do not have other sources of income which when added together would be taxable.

Personal income tax rates are levied on chargeable incomes. A Chargeable Income is the balance of income remaining after deducting from the Gross Income, all allowable deductions claimed including the tax free allowance of D7,500.00 (Personal Tax Relief). The rates levied on a chargeable income are specified below:-

ANNUAL INCOME

BRACKETS                           DIFFERENCE            CUMMULATIVE      PERCENTAGE

0         -           7,500                        7,500                            7,500                                  0%

7,501    –      17,500                      10,000                         17,500                                 10%

17,501   –    27,500                      10,000                         27,500                                 15%

27,501   –   37,500                      10,000                         37,500                                 20%

37,501   –   47,500                      10,000                         47,500                                 25%

47,501   AND ABOVE  ………………………………………………………………………..35%

• Domestic Sales Tax

Domestic Sales Tax is imposed on taxable supply of goods and services.  The taxable supply of goods and services will include Manufacturing Factories, Telecommunication Services, Insurance Services, Air Transport Services and Shipping Agency Services among a list of Service Operators. The rates are 20% for Telecommunication Services and 15% for all others.

• Capital Gains Tax

Capital Gains Tax is the tax imposed on a person or Institution who has disposed of a Capital Asset (Land; Building; Structural improvement to land; Plant, Machinery; Fixture and Equipment; Shares; Security or other Financial Assets; Any interest in a Partnership or Any right, title, or interest in an Asset referred above).

The Capital Gains tax payable by a person, body of persons or personal Trustee on the disposal of Capital Asset is 15% of the capital gain arising on the disposal or 5% of the consideration received on the disposal. In the case of Company, Partnership or corporate Trustee it is 25% of the capital gain arising from the disposal or 10% of the consideration received for the disposal which ever is greater.