Mastering the Definition of Income for Tax Purposes

Income tax is a tax on a person's income, not on transactions or things.

It is important to know the definition of income for tax purposes because income tax is levied on the 'income' of an entity.

'Income' is classified for tax purposes according to the Income Tax Act, Chapter 323 of the Laws of Zambia. Section 17 of the Act includes gains or profits from any business, emoluments, annuities, and dividends in the definition of 'income'.

<p>Emoluments are salaries, fees, or profits from employment or office.</p> Signup and view all the answers

<p>Dividends are distributions of a company's profits to its shareholders.</p> Signup and view all the answers