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Income Tax Rate Act 1974

SAMOA

INCOME TAX RATE ACT 1974

Arrangement of Provisions

1. Short title
2. Interpretation
3. Rates of income tax

4. Rates of tax deductions
5. Rates of salary and wage tax

Schedules

INCOME TAX RATE ACT 1974

1974 No.16

AN ACT to fix the rates of income tax and tax deductions for the year commencing on the 1st January 1975 and every subsequent year.

[Assent date: 30 December 1974]
[Commencement date: 1 January 1975]

1. Short title- (1) This Act may be cited as the Income Tax Rate Act 1974.
(2) This Act shall come into force on the 1st day of January 1975 and except where otherwise provided, shall apply with respect to tax for the income year commencing on that date and for every subsequent year.
(3) This Act is declared to be one of the Inland Revenue Acts within the meaning of the Income Tax Administration Act 1974.

2. Interpretation - The provisions of section 2 of the Income Tax Act 1974 defining certain terms for the purposes of the Inland Revenue Acts apply for the purposes of this Act.
3. Rates of income tax - Income tax shall be assessed, levied and paid pursuant to the Income Tax Act 1974 at the rates specified in Schedule 1.

4. Rates of tax deductions - Tax shall be deducted and withheld pursuant to the Income Tax Administration Act 1974 at the rates specified in Schedule 2.

5. Rates of salary and wage tax –(1) Salary and wage tax shall be assessed, levied, deducted and paid pursuant to the Income Tax Act 1974 and the Income Tax Administration Act 1974 at the rates specified in clause 7A of Schedule 1.

(2) For the purposes of this section and clause 7A of Schedule 1, “income” includes salary and wages income and the rate specified in that item also applies to salary and wages tax payable on salary and wages income.

SCHEDULES

SCHEDULE 1
(Sections 3 and 5)

RATES OF INCOME TAX

1. Insurance Companies- The income tax payable by an insurer on income taxable under section 34 of the Income Tax Act 1974, shall be calculated at the following rates:

(i) income taxable under subsection (3) 7 1/2%;

(ii) income taxable under subsection (4) 10%;

(iii) income taxable under subsection (5) 15%;

(iv) income taxable under subsection (6) 7 1/2%;

(v) income taxable under subsection (7) 2 1/2%.

This item was substituted for the original item 1 2.3 of the Income Tax Rate Amendment Act 1978.

2. Trustees- On income taxable under section 36 other than dividends, income tax payable pursuant to Part IV of the Income Tax Act 1974, the income tax payable on the taxable income shall be 27% thereof.
3. Overseas Freight and Passage Money- On income taxable under section 38 of the Income Tax Act 1974, the income tax payable on the taxable income shall be 5% thereof.
4. Film Revenue of Non-Residents- On income taxable under section 39 of the Income Tax Act 1974, the income tax payable on the taxable income shall be 15% thereof.
5. Withholding Income- On income taxable under section 40 of the Income Tax Act 1974, the income tax payable on the taxable income shall be:

(i) in the case of income consisting of dividends derived from Samoa by a resident, 10% thereof; and

(ii) in the case of income consisting of dividends derived from Samoa by a non-resident, 15% thereof; and

(iii) in the case of withholding income (other than or withholding income paid by an approved company) 15% thereof; and

(iv) in the case of withholding income paid by an approved company, 50% thereof or such lower rate as the Minister may approve in writing.

6. Other Companies- On income of companies other than income taxable pursuant to Part IV of the principal Act not included under Clauses 1 to 5 of this Schedule, the income tax payable on the taxable income shall be:

(i) in the case of a company that is deemed to be resident in Samoa within the meaning of Part II of the Income Tax Act 1974:

(a) for the income year which commenced 1st January 1974 on all such taxable income, at the rate of 5% increased by 1/48,000 of every whole tala of the taxable income but so as not to exceed 50%;

(b) for the income year commencing on 1st January 1975, 35% on so much of the taxable income as does not exceed $10,000 and 42% on so much of the taxable income as exceeds $10,000;

(c) for the income year commencing on 1st January 1976, 38% on so much of the taxable income as does not exceed $10,000 and 42% on so much of the taxable income as exceeds $10,000;

(d) for the income year commencing on 1st January 1977 and succeeding years, 42% on all such taxable income;

(e) for the income year commencing 1st January 1987 and succeeding years, 39% on all such taxable income;

(f) for the income year commencing on 1st January 1994 and succeeding years, 35% on all such taxable income;

(g) for the income year commencing on 1st January 2000 and succeeding years, 29% on all such taxable income;

(h) for the income year commencing on 1st January 2007 and succeeding years, 27% on all such taxable income;

(ii) in the case of a company that is not deemed to be resident in Samoa within the meaning of Part II of the Income Tax Act 1974:

(a) for the income which commenced on 1st January 1974, on all such taxable income at the rate of 10% increased by 1/48,000 of every tala of the taxable income but so as not to exceed 55%;

(b) for the income year commencing on 1st January 1975 and succeeding years, 48% on all such taxable income;

(c) for the income year commencing on 1st January 1994 and succeeding years, 35% on all such taxable income.

6A. Capital Gains- The income tax payable by every taxpayer on all income taxable pursuant to Part IV of the Income Tax Act 1974 [as inserted by the income Tax Amendment (Capital Gains) Tax Act 1989] shall be calculated at the rate of 27sene for every tala of taxable income.

7. Other Taxpayers- (1) On all income derived on or before the 31st day of December 1989 not included under clauses 1 to 6 of this schedule the income tax payable on the taxable income shall be:
   

(ii) there shall be a rebate of income tax payable under subclause (i) for the income year commencing 1st January 1988;

(a)where such tax does not exceed $3,000 of 15%;

(b)where such tax exceeds $3,000 of 15% of the first $3,000 and 10% of the remainder;

(iii) there shall be a rebate of income tax payable under subclause (i) of the income year commencing 1 January 1988:

(a)where such tax does not exceed $3000 of 15% and

(b)where such tax exceeds $3000 of 15% on the first $3000 and 10% of the remainder;

(iv) there shall be a rebate of income tax payable under subclause (1) for the tax year commencing on 1 January 1989:

(a)where such tax does not exceed $3000 of 15%; and

(b) where such tax exceeds $3000 of 15% on the first $3000 and 10% of the remainder.

7A. Other Taxpayers:On all income derived on or after the 1st day of January 1990 up to and including the 31st day of December 1993 not included under clauses 1 to 6A of this Schedule the income tax payable on the taxable income shall be:

(ii) on all income derived on and after the 1st day July 1995 not included under clauses 1 to 6A of this Schedule the income.

(iii) on all income derived on or after the 1st day of January 1999 not included under clauses 1 to 6A of this Schedule the income:

(iv) on all income derived on or after the 1st day of January 2000 not included under clauses 1 to 6A of this Schedule, the income tax payable on the taxable income shall be:

(v) on all income derived on or after 1 January 2007 not included under clauses 1 to 6A, the income tax payable on the taxable income shall be:

SCHEDULE 2
(Section 4)
RATES OF TAX DEDUCTION

TAX shall be deducted and withheld, subject to Part V of the Income Tax Administration Act 1974, at the following rates:

1. Emoluments paid to residents and non-residents (in any case where no other rate is specified in this Schedule): as set out in the Appendix to this Schedule.

1A. This clause was omitted by section 20 of Amendment Act 1988, No.41

2. The rates set out in the First Part of the appendix shall not apply in respect of emoluments paid after the 31st day of December 1989; the rates set out in the Second Part of the appendix shall apply in respect of emoluments paid after the 31st day of December 1989.
3. Payments to residents which are included in assessable income by virtue of paragraphs (e), (f) and (g) of section 8 of the Income Tax Act 1974 (but excluding annuities and pensions which are emoluments); 15%.
4. Payments to non-residents which are included in taxable income by virtue of section 38 of the Income Tax Act 1974; 15%.
5. Payments to non-residents which are included in taxable income by virtue of section 39 of the Income Tax Act 1974; 15%.
6. Payments to non-residents which are included in taxable income by virtue of section 8(g) or section 40 of the Income Tax Act 1974; 15%.
7. Payments to residents which are included in taxable income by virtue of section 40 of the Income Tax Act 1974: 15%
8. Commissions; 10%.
9. Director's fees; 30%.
10. Jurors' fees, assessors' fees, witnesses fees and honoraria; 20%.
11. Payments in relation to motor vehicle (except taxis) and machinery hireage made by any trader, merchant, company, or public or local authority; 10%.
12. Any payment which is declared by regulation under the Income Tax Administration Act 1974 to be a source deduction payment; such amount or rate of deduction as is specified in any such regulation, and in any case where no amount or rate is specified in any such regulation or elsewhere in this Schedule; 10%.
13. Any payment or class of payments from which the employer is required by notice from the Commissioner to deduct and withhold any sum on account of any liability that may arise in respect of that payment; such amount or rate of deduction as is specified in any such notice.
14. Secondary income (in any case where no other rate is specified in this schedule); 20%.
15. Secondary income for teaching, lecturing, marking examination scripts, broadcasting and other similar services; 20%.

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REVISION NOTES 2008-2011

This Act has been revised under section 5 of the Revision and Publication of Laws Act 2008.

The following general revisions have been made:

(a) Amendments have been made to conform to modern drafting styles and to use modern language as applied in the laws of Samoa.

(b) Insertion of the commencement date

(c) Other minor editing has been done in accordance with the lawful powers of the Attorney General.

(i) Present tense drafting style:

• “shall be” changed to “is/are”
• “hereby” and “from time to time”

(ii) Authorising section for the Schedules inserted (under the relevant Schedule headings).
(iii) Removal of superflous terms: “to this Act”
(iv) Adopting the drafting style of putting “and” or “or” at the end of paragraphs where appropriate.
(v) Notation (At the end of this Act) indicating the department responsible for administering this Act has been amended to delete “Inland Revenue Department” and substituting “Ministry for Revenue” to suit current and formal alterations to ministry and department names.
(vi) Other formatting and drafting changes (including making arrangement of provisions consistent with the body of the text).

There were no amendments made to this Act since the publication of the Consolidated and Revised Statutes of Samoa 2007.

This Act has been consolidated and revised in 2008, 2009, 2010 and 2011 by the Attorney General under the authority of the Revision and Publication of Laws Act 2008 and is the official version of this Act as at 31 December 2011. It is an offence to publish this Act without approval or to make any unauthorised change to an electronic version of this Act.

Aumua Ming Leung Wai
Attorney General of Samoa

Revised and consolidated in 2008 by the Legislative Drafting Division under the supervision of TeleiaiLalotoaSinaalamaimaleulaMulitalo (Parliamentary Counsel)

Revised in 2009, 2010 and 2011 by the Legislative Drafting Division under the supervision of Papalii Malietau Malietoa (Parliamentary Counsel).

Income Tax Rate Act 1974 is

administered by the Ministry for Revenue.