Here are the key points summarized from the Finance Act 2016: Amendments to the Income Tax Act, 2000: New definitions are added, including “branch,” “compliance certificate,” “micro taxpayer,” “small taxpayer,” and “small and micro taxpayer.” Public educational institutions funded by the government are exempt from certain taxes. The “Small Medium Enterprises (SME) Regime” is replaced with the “Small and Micro Taxpayer Regime.” Tax rates and regulations regarding income derived from mineral rights, prospecting, and exploration licenses are specified. Thresholds and rates for various tax categories, such as small taxpayer turnover and income exemptions for Sierra Leone airlines, are defined. Amendments to Specific Sections: Section 32 is amended to allow taxpayers to carry forward allowable losses. Section 35 is amended to specify exceptions to interest expenses included in asset cost base or borne on loans from shareholders. Section 95 is amended to require disclosure of transactions with related parties, including relationship, volume, value, price, and comparative pricing. Section 97 is amended to specify annual accounting requirements for different types of organizations and businesses, including those under the Small and Micro Taxpayer Regime. Withholding Agent Obligations: Section 128 is amended to clarify that the obligations of withholding agents remain in effect regardless of their organizational status under section 9. These amendments outline changes to tax definitions, rates, exemptions, disclosure requirements, and obligations for withholding agents under the Income Tax Act, 2000.
