Budget 2007

You are here: Home > Business Tools > Budget 2007

Related Links

Recommended Titles @ Amazon

Personal Tax Bands - 2007 (as per Budget 2007)
Single Rates			Married Rates
Chargeable Income (Lm)	Tax Rate (multiply by)	Subtract	Chargeable Income (Lm)	Tax Rate (multiply by)	Subtract
0 - 3250	0	0	0 - 4500	0	0
3251 - 5500	0.15	487.5	4501 - 8000	0.15	675
5501 - 6750	0.25	1037.5	8001 - 10000	0.25	1475
6751 & Over	0.35	1712.5	10001 & Over	0.35	2475

Cost of Living Allowances Increases

Duty on inheritance of residential property

Duty on inherited property that constituted the deceased’s ordinary residence will be exempt on the first Lm15000 of the value of the property.
If a person inherits a property that constituted the deceased’s ordinary residence and which he or she would also be living in the duty would be 0% on the first Lm15000 and 3.5% on the next Lm15000.
If a person inherits a property that did not constitute the deceased’s ordinary residence and which he or she would also be living in the duty would be 3.5% on the first Lm30000.
The commencement date of these measures are still to be announced.

Family members to be considered employees of a family business

The budget measures will enable husband or wife to be considered employees of a family business, be registered for tax as employees and start paying social security contributions as employees and not as self-employed.
Family business may deduct these wages and salaries as business expenses.

Social security contributions on part-time work as main employment

Employees whose main employment is part-time, and their basic wage per week does not exceed the national minimum wage, shall pay 10% of their remuneration as social security contributions and therefore no minimum ceiling shall apply.
Such employees will be entitled to social security benefits on a pro-rata basis.

Tax incentives on private school fees

Primary school - a deduction from chargeable income of a maximum of Lm400 per child will be allowed
Secondary School - a deduction from chargeable income of a maximum of Lm600 per child will be allowed

Budget 2007 Links

Budget Speech (English)

2007 Budget Matters - Notice

The Budget 2007 Excerpts are a brief summary and intended solely for general information and should not be acted upon without prior consultation.

The full version of the Budget Speech 2007 may be obtained from the Department of Information website.

Specific detail may become clearer on the enactment of the specific legislation.