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Insurance Premium Levy Act

Act 21 of 2015

Insurance Premium Levy Act
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Citation
Act 21 of 2015
Date
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English
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Zambia

Insurance Premium Levy Act

Act 21 of 2015

  1. [Amended by Insurance Premium Levy (Amendment) Act, 2017 (Act 15 of 2017) on 1 January 2018]
  2. [Amended by Insurance Premium Levy (Amendment) Act, 2018 (Act 16 of 2018) on 1 January 2019]
  3. [Amended by Insurance Premium Levy (Amendment) Act, 2021 (Act 47 of 2021) on 1 January 2022]
  4. [Amended by Insurance Premium Levy (Amendment) Act, 2024 (Act 28 of 2024) on 1 January 2025]
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.ENACTED by the Parliament of Zambia.

1. Short title and commencement

This Act may be cited as the Insurance Premium Levy Act and shall come into operation on 1st January, 2016.

2. Interpretation

In this Act, unless the context otherwise requires—“broker” has the meaning assigned to it in the Insurance Act, 1997;[Act No. 27 of 1997]“Commissioner-General” has the meaning assigned to it in the Zambia Revenue Authority Act;[Cap. 321]“electronic fiscal device” [definition of “electronic fiscal device” inserted by section 2 of Act 16 of 2018 and deleted by section 2(a) of Act 28 of 2024]“electronic invoicing system” has the meaning assigned to the words in the Value Added Tax Act;[Cap. 331][definition of “electronic invoicing system” inserted by section 2(b) of Act 28 of 2024]“insurance agent” has the meaning assigned to it in the Insurance Act, 1997;[Act No. 27 of 1997]“insurance business” has the meaning assigned to it in the Insurance Act, 1997;[Act No. 27 of 1997]“insurer” has the meaning assigned to it in the Insurance Act, 1997;[Act No. 27 of 1997]“levy” means the insurance premium levy charged under section four; and"policy" has the meaning assigned to it in the Insurance Act, 1997.[Act No. 27 of 1997]

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.[Cap. 321; Cap.331]

4. Charge of levy

(1)A five percent 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.[subsection (1) amended by section 2 of Act 15 of 2017 and by section 2 of Act 47 of 2021]
(2)Value added tax is not payable on an insurance premium.
(3)An insurer, an insurance agent or a broker shall use an electronic invoicing system to record a payment of the levy and issue a tax invoice generated by the electronic invoicing system to a person that pays the levy.[subsection (3) added by section 3 of Act 16 of 2018 and substituted by section 3 of Act 28 of 2024]

5. When levy becomes due

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.[section 5 amended by section 4 of Act 16 of 2018]

6. Exemption

The Minister may, by statutory instrument, exempt any person from the payment of the levy.

7. Recovery of 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.
[Cap. 331]

8. Regulations

The Minister may, by statutory instrument, make regulations for the proper administration of this Act.

9. Administrative rules

The Commissioner-General may, by notice in the Gazette, make administrative rules for the proper administration of this Act.
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History of this document

01 January 2025 this version
01 January 2022
Read this version
01 January 2019
Read this version
01 January 2018
Read this version
01 January 2016
Commenced
24 December 2015
Read this version
17 December 2015
Assented to

Subsidiary legislation

Title
Insurance Premium Levy (Exemption) Order, 2016
Statutory Instrument 18 of 2016