The Income Tax Act of 1973 lays out the basic regime under which corporations and individuals are taxed.
The corporate income tax rate in 2002 was 30% (down from 35%) of taxable profits. Withholding taxes include 15% for dividends, 15% for interest; 20% on management and professional fees; 20% on royalties, 20% on rents, 10% on aircraft leases; 3% or 20% on technical services and management fees in the mining sector, and 20% on remittances of profits by resident branches of foreign companies. Capital gains tax is levied at rates of 0-30%, but only on gains derived from the sale of premises.
Income taxes are levied on wages and salaries, profits, and rental income; rates vary from 7.5-30%. There is a Housing Levy of 4% of payroll and a Vocational Education Training Levy of 2% of gross payroll. There is a value-added tax (VAT) introduced in July 1998 with a standard rate of 17.5%, but subsequently raised to 20%. Exemptions from VAT include computers, tour operations, hospital equipment, and investments in educational equipment. Other taxes include a stamp duty on sales of 1.2%, a transport withholding tax of 2%, local government development levies, an entertainment tax (for non-VAT-registered taxpayers) and airport and seaport departure charges.