2006/07 TAX TABLES

The tax year for both individuals and companies, referred to as the charge year, runs from 1 April to 31 March. Company Tax This is levied on business profits of incorporated companies and branches of foreign companies. Taxpayers are required to compute taxable income on an actual basis by reference to the charge year. A Company that has an accounting year end other than 31 March can apply to the !"A to base its tax return on the accounting year end. The final tax returns are due by 3# $eptember follo%ing the end of the respective charge year.

Company Standard Tax Rates &usinesses %ith turnover of up to !' (## m excluding consultancy business &an)s * +irst !' (,# m profit "emainder -xporters of non traditional products .e.g. cotton, flo%ers, tobacco/ Copper 0 Cobalt mining companies +armers and producers of chemical fertilisers Manufacturers and others including those listed on 1u$2ncome on commercial activities of exempt organisations

Rate % 3 3, 3# 1, (, 1, 3, 1,

4e% listing on the 1u$- attracts (5 discount on the rates sho%n above and a further ,5 discount %here at least 335 of shares are ta)en up by !ambians. The discounts are available for 1 year only. Micro and small enterprises are exempt from income tax for the first 3 and , years of operations for enterprise operating in urban area and rural area respectively.

Provisiona tax A provisional tax return sho%ing an estimate of the income for the charge year must be filed by 3# 6une of each year. A revised return should be submitted if the estimate of taxable income changes substantially There are penalties for late submission of tax returns of !' 37#,### per month or part thereof that the return is late.

1 3.4 Advanced Taxation Amendment Act 2006

Capita A o!an"es Capital expenditure incurred in mining operations +arm %or)s and improvements -quipment used in manufacturing, farming and tourism All leased assets 8lant, machinery and commercial vehicles 4on commercial vehicles 9evelopment allo%ance on selected gro%ing plants 2ndustrial buildings Commercial buildings Carry #or!ard Losses

Rate % 1## 1## ,# ,# (, (# 1# , (

:ther than for successor companies to the !ambia Consolidated Copper Mines limited .;!CCM;/, carry for%ard of company tax losses is restricted to , years. $uccessor companies to !CCM no% include successor buyers of privatised mines or any ne% mining companies formed. Con"ession Rates $or Copper % Co&a t 'inin( Companies Mineral royalty on gross revenue <=T on interest to shareholders, affiliates 0 other lenders on> "oyalties, management fees and dividends to shareholders 0 affiliates Capital expenditure deduction on all mining operations Period o$ "arry $or!ard o$ tax osses 'CM, $melter Co and MCM :ther successor !CCM companies (#yrs 1#yrs Rate % #.7 4il 1##

)ndexation o$ minin( osses =olders of large scale mining licences are allo%ed to 2ndex the carry for%ard losses and capital allo%ances. Con"essions $or Companies *nder t+e Proposed ,am&ia -eve opment A(en"y .,-A/ A"t0 Compute corporation tax at current rates on ,#5 of the profits earned for a period of , years starting from the first year profits are returned. -xempt dividends from tax for a period of , years from the date of first declaration. Allo% capital expenditure on improvement or for the upgrading of infrastructure to qualify for improvement allo%ance of 1##5 of such expenditure for tax purposes.

ii 3.4 Advanced Taxation Amendment Act 2006

Persona Taxation Pay As 1o* Earn 8A?- is collected at source from employees in gainful employment. The employer deducts the tax from the employees@ salaries or %ages and remits the tax to the !"A by the 13th of the month follo%ing the month of deduction. The employees are entitled to a tax exempt threshold of !'3, A3#,### per annum or !' 3(#,### per month. The structure for 8A?- is as sho%n in the table belo%. Taxa& e )n"ome per ann*m .,4/52006/06 +irst 3,37#,### 4ext A,73#,### 4ext 3A,###,### &alance G G G G #5 3#5 3,5 3#5 Taxa& e )n"ome per ann*m .,4/52006/07 +irst 3,A3#,### 4ext H,A,A,(3# 4ext ,3,F7A,### &alance G #5 G 3#5 G 3,5 G 3F.,5

-ach disabled 2ndividual is entitled to a tax credit of !'37, ### per annum. A company employing persons %ith disabilities is entitled to a deduction of !',##, ### per annum for each such person employed. The annual deductible limit for contributions to Approved 8ension +unds remains at the lo%er of 1,5 of income and !'1A#, ###. +urther, an employee %ho contributes to an approved pension contribution scheme is allo%ed a refund of both his contribution and that of the employer@s share upon loss of employment. :n cessation of employment, the 2ncome Tax Act .;2TA;/ provides for exemption from tax of the first !'1# million on terminal benefits paid to retirees and retrenched persons. The balance of such payments is subBect to tax at 1#5.

2a *e Added Tax .32AT3/ Companies and individuals dealing in supplies classified as taxable are required to register for CAT and submit returns to the !"A for each month %ithin (1 days of the end of the month to account for excess output over input CAT The turnover threshold for registration is !M'(## million per annumD Coluntary registration for businesses %ith turnover belo% the registration threshold is no longer allo%edD CAT registered suppliers %ith a turnover of over '1 billion are required to submit input tax schedules electronicallyD $upplies of goods and services are categorised into three taxable, exempt .infant cereals and maiEe and flour made from it/, and Eero rated. 2nput tax on exempt supplies is not claimable. The standard rate of CAT is 1F.,5 for all domestic taxable supplies and #5 for exports and selected medical equipmentD and The period in %hich input CAT on pre production activities on mineral prospecting companies can be recovered has been extended from four to five years.

iii 3.4 Advanced Taxation Amendment Act 2006

)mport 2AT 2mport CAT is levied on imports of taxable goods at the rate of 1F.,5. Reverse 2AT "everse CAT is charged on services provided by non resident suppliers including management consultancy, research, advertising, construction and royalties at the standard rate of 1F.,5. "everse CAT is applicable %ith effect from 1 April (##3 irrespective of %here the service is rendered from provided the beneficiary is in !ambiaD ho%ever services that constitute local supplies in other CAT Burisdiction are excluded. 'inera Roya ty Tax Mineral royalty tax is payable by all holders of mining 2icenses and is calculated on the gross value of minerals produced. The rate for small and medium scale companies involved in the mining of gemstones and other precious stones and metals is ,5. The successor companies to !CCM have a concessionary rate of #.75 The due date for the submission of the monthly mineral royalty return and payment of mineral royalty is 13th of the month follo%ing the month of sale. "ene%al of mining licenses is subBect to a tax clearance certificate.

Property Trans$er Tax .3PTT3/ 8roperty transfer tax is charged at 35 on the realisable value of the property being transferred. 2t is payable by the transferor. 8roperty definition 2ncludes. Any land .including any buildings, structures, or other improvements thereon/D and Any share 2ssued by a company in !ambia that is not listed on the 1usa)a $toc) -xchange .;1u$-;/. The realised value is the price at %hich the shares or land could, at the time of transfer, reasonably have been sold on the open mar)et. There is an exemption for transfers of shares or land %ithin the same group of companies .as long as the transferee is a company resident in !ambia/ and shares in companies listed on the 1u$-.

C*stoms -*ties Car&on tax on motor ve+i" es An annual carbon tax on motor vehicles has been introduced on all motor vehicles effective from 1 April (##7 as follo%s> Cy inder "apa"ity 1,## CC or less 1,## CC to (###CC (###CC to 3###CC :ver 3### CC 4!a"+a ,#,### 1##,### 1,#,### (##,###

iv 3.4 Advanced Taxation Amendment Act 2006

7it++o din( Tax .378T3/ The rate of <=T on the follo%ing is 1,5> 9ividends, interest, royalties, rent, commissions, management and consultancy fees. Construction and haulage by non residents. 8ayments to non resident entertainers and sports persons. Commissions paid to non resident and residents %ho are not employees of the payer.

The rate is reduced under certain 9ouble Taxation Treaties .;9TT;/ %here the payment is to a resident of a treaty country. Advance clearance in %riting is required from the !"A to %ithhold tax at a reduced rate. +or non resident recipients, the <=T is a final tax. +or !ambian residents the <=T is a credit against the liability in respect of that income Pres*mptive Tax <ith effect from 1 April (##3, 8resumptive Tax is levied at 35 on businesses %ith turnover of up to !' (## million per annum and on operators of buses, mini buses and taxis but excluding consultancy businesses. The taxes payable for transport operators are as follo%s>

Sittin( "apa"ity o$ ve+i" e &elo% 1( including taxis 1( 1F 1A (1 (( 3, 37 3H ,# 73 Temporary )mports

Tax per ve+i" e per ann*m .,4/ 7##,### 1,(##,### (,3##,### 3,7##,### 3,A##,### F,(##,###

Ioods may be temporarily imported into !ambia, tax free, under a temporary import permit. 2n practice permits are granted for up to a maximum of t%elve months. Jpon importation, the importer must give security for the temporary imports. This is refundable upon exporting the goods %ithin the period of the permit.

KKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK

v 3.4 Advanced Taxation Amendment Act 2006