Bill to Remove Tax Exemption to be Taken to Parliament


Cabinet has given approval for the Income Tax (Amendment) Act 2018 to be introduced into the Houses of Parliament.

The Bill seeks to make permanent the removal of the exemption previously provided for the general insurance companies, insurance brokers and agents from the 15 per cent withholding tax on outgoing premiums in the circumstances specified in the Act.

This is according to a Ministry Paper tabled in the House of Representatives on September 18.

The legislation further seeks to validate and confirm as lawful, the withholding tax on outgoing insurance premiums collected during the period December 2017 to the date of the coming into operation of the more permanent provisions.

The amendment also aims to indemnify the Government and persons purporting to act on behalf of the Government in good faith and inadvertent as to the collection being invalid, improper or unlawful during that period.

JIS Social