*2⃣ Cents Tax Comes💸 into Effect Today🗓*

The Intermediated Money Transfer Tax, now commonly known as 2 cents tax, announced by Government last week comes into effect today after it was gazetted yesterday.

This tax was gazetted in Statutory Instrument 205 of 2018 published in the Government Gazette.

The new tax has been introduced by way of amendments to section 22G of the Finance Act (Chapter 23:04) and the Thirteenth Schedule of the Income Tax Act (Chapter 23:06).

Reads part of the Statutory Instrument:

“With effect from the day after the promulgation of these regulations, the intermediated money transfer tax chargeable in terms of section 36 G of the Taxes Act shall be calculated at the rate of zero comma zero two (0,02) United States dollars on every dollar transacted for each transaction on which the tax is payable: provided that if a single transaction on which the tax is payable is equivalent to or exceeds five hundred thousand ($500 000) United States dollars, a flat intermediated money transfer tax of ten thousand ($10 000) United States dollars shall be chargeable on such transaction.”