CONSOLIDATED ACTS OF SAMOA 2009

INCOME TAX RATE ACT 1974

Arrangement of Provisions

TITLE
1. Short title, etc.
2. Interpretation
3. Rates of Income Tax 
4. Rates of tax deductions
5. Rates of Salary and Wage Tax
Schedules

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THE INCOME TAX RATE ACT 1974
1974 No.16

AN ACT to fix the rates of income tax and tax deductions for the year commencing on the 1st January 1975 and every subsequent year.

(30 December 1974)
(Commencement date: 1 January 1975)

1. Short title, etc.- (1) This Act may be cited as the Income Tax Rate Act 1974.

(2) This Act shall come into force on the 1st day of January 1975 and except where otherwise provided, shall apply with respect to tax for the income year commencing on that date and for every subsequent year.

(3) This Act is hereby declared to be one of the Inland Revenue Acts within the meaning of the Income Tax Administration Act 1974.

2. Interpretation - The provisions of section 2 of the Income Tax Act 1974 defining certain terms for the purposes of the Inland Revenue Acts apply for the purposes of this Act.

3. Rates of income tax - Income tax shall be assessed, levied and paid pursuant to the Income Tax Act 1974 at the rates specified in the First Schedule to this Act.

4. Rates of tax deductions - Tax shall be deducted and withheld pursuant to the Income Tax Administration Act 1974 at the rates specified in the Second Schedule to this Act.

5. Rates of Salary and Wage Tax – (1) Salary and Wage tax shall be assessed, levied, deducted and paid pursuant to the Income Tax Act 1974 and the Income Tax Administration Act 1974 at the rates specified in clause 7A of the First Schedule.

(2) For the purposes of this section and clause 7A of the First Schedule, "income" includes salary and wages income and the rate specified in that item also applies to salary and wages tax payable on salary and wages income.

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SCHEDULES

FIRST SCHEDULE

RATES OF INCOME TAX

1. Insurance Companies- The income tax payable by an insurer on income taxable under section 34 of the Income Tax Act 1974, shall be calculated at the following rates:

(i) Income taxable under subsection (3) 7 1/2%

(ii) Income taxable under subsection (4) 10%

(iii) Income taxable under subsection (5) 15%

(iv) Income taxable under subsection (6) 7 1/2%

(v) Income taxable under subsection (7) 2 1/2%

This item was substituted for the original item 1 2.3 of the Income Tax Rate Amendment Act 1978.

2. Trustees- On income taxable under section 36 other than dividends, income tax payable pursuant to Part IV of the Income Tax Act 1974, the income tax payable on the taxable income shall be 27% thereof..

3. Overseas Freight and Passage Money- On income taxable under section 38 of the Income Tax Act 1974, the income tax payable on the taxable income shall be 5% thereof.

4. Film Revenue of Non-Residents- On income taxable under section 39 of the Income Tax Act 1974, the income tax payable on the taxable income shall be 15% thereof.

5. Withholding Income- On income taxable under section 40 of the Income Tax Act 1974, the income tax payable on the taxable income shall be:

(i) In the case of income consisting of dividends derived from Samoa by a resident, 10% thereof.

(ii) In the case of income consisting of dividends derived from Samoa by a non-resident, 15% thereof; and

(iii) In the case of withholding income (other than or withholding income paid by an approved company) 15% thereof.

(iv) In the case of withholding income paid by an approved company, 50% thereof or such lower rate as the Minister may approve in writing from time to time.

6. Other Companies- On income of companies other than income taxable pursuant to Part IV of the principal Act not included under Clauses 1 to 5 of this Schedule, the income tax payable on the taxable income shall be:

(i) In the case of a company that is deemed to be resident in Samoa within the meaning of Part II of the Income Tax Act 1974.

(a) For the income year which commenced 1st January 1974 on all such taxable income, at the rate of 5% increased by 1/48,000 of every whole tala of the taxable income but so as not to exceed 50%.

(b) For the income year commencing on 1st January 1975, 35% on so much of the taxable income as does not exceed $10,000 and 42% on so much of the taxable income as exceeds $10,000.

(c) For the income year commencing on 1st January 1976, 38% on so much of the taxable income as does not exceed $10,000 and 42% on so much of the taxable income as exceeds $10,000.

(d) For the income year commencing on 1st January 1977 and succeeding years, 42% on all such taxable income.

(e) For the income year commencing 1st January 1987 and succeeding years, 39% on all such taxable income.

(f) For the income year commencing on 1st January 1994 and succeeding years, 35% on all such taxable income.

(g) For the income year commencing on 1st January 2000 and succeeding years, 29% on all such taxable income.

(h) For the income year commencing on 1st January 2007 and succeeding years, 27% on all such taxable income.

(ii) In the case of a company that is not deemed to be resident in Samoa within the meaning of Part II of the Income Tax Act 1974:

(a) For the income which commenced on 1st January 1974, on all such taxable income at the rate of 10% increased by 1/48,000 of every tala of the taxable income but so as not to exceed 55%.

(b) For the income year commencing on 1st January 1975 and succeeding years, 48% on all such taxable income.

(c) For the income year commencing on 1st January 1994 and succeeding years, 35% on all such taxable income.

6A. Capital Gains- The income tax payable by every taxpayer on all income taxable pursuant to Part IV of the Income Tax Act 1974 [as inserted by the income Tax Amendment (Capital Gains) Tax Act 1989] shall be calculated at the rate of 27 sene for every tala of taxable income.

7. Other Taxpayers- (1) On all income derived on or before the 31st day of December 1989 not included under clauses 1 to 6 of this schedule the income tax payable on the taxable income shall be:

(i)	On so much of the income as

Does not exceed $,1000

Exceeds $1,000 but does not exceed $3,000

Exceeds $3,000 but does not exceed $5,000
Exceeds $5,000 but does not exceed $7,000

Exceeds $7,000 but does not exceed $10,000

Exceeds $10,000
	The rate of the tax for every tala shall be
Sene

5

15

25

35

45

50

(ii) There shall be a rebate of income tax payable under subclause (i) for the income year commencing 1st January 1988.

(a) where such tax does not exceed $3,000 of 15%.

(b) where such tax exceeds $3,000 of 15% of the first $3,000 and 10% of the remainder.

(iii) There shall be a rebate of income tax payable under subclause (i) of the income year commencing 1 January 1988

(a) where such tax does not exceed $3000 of 15% and 

(b) where such tax exceeds $3000 of 15% on the first $3000 and 10% of the remainder;

(iv) There shall be a rebate of income tax payable under subclause (1) for the tax year commencing on 1 January 1989.

(a) where such tax does not exceed $3000 of 15%; and

(b) where such tax exceeds $3000 of 15% on the first $3000 and 10% of the remainder.

7A. Other Taxpayers:

(i) On all income derived on or after the 1st day of January 1990 up to and including the 31st day of December 1993 not included under clauses 1 to 6A of this Schedule the income tax payable on the taxable income shall be:

(i)	On so much of the income as

Does not exceed $,400

Exceeds $4000 but does not exceed $8000

Exceeds $800 but does not exceed $12000

Exceeds $12000 but does not exceed $16000

Exceeds $16000 	The rate of the tax for every tala shall be
Sene

10

20

30

40

45	

(ii) On all income derived on and after the 1st day July 1995 not included under clauses 1 to 6A of this Schedule the income. 

 	On so much of the income as

Does not exceed $,6000

Exceeds $6000but does not exceed $12000

Exceeds $12000 but does not exceed $17000

Exceeds $17000 	The rate of the tax for every tala shall be

0

10

20

35	

(iii) On all income derived on or after the 1st day of January 1999 not included under clauses 1 to 6A of this Schedule the income: 

 	On so much of the income as

Does not exceed $8,001

Exceeds $8,001 but does not exceed $14,000

Exceeds $14,001 but does not exceed $18,001

Exceeds $18,000 	The rate of tax on every tala shall be

0%

10%

20%

35%	

(iv) On all income derived on or after the 1st day of January 2000 not included under clauses 1 to 6A of this Schedule, the income tax payable on the taxable income shall be: 

 	On so much of the income as

Does not exceed $10,000

Exceeds $10,000 but does not exceed $15,000

Exceeds $15,000 but does not exceed $20,000

Exceeds $20,000 	The rate of tax on every tala shall be

NIL

10%

20%

29%

(v) On all income derived on or after 1 January 2007 not included under clauses 1 to 6A, the income tax payable on the taxable income shall be: 

 	On so much of the income as

Does not exceed $12,000

Exceeds $12,000 but does not exceed $15,000

Exceeds $15,000 but does not exceed $20,000

Exceeds $20,000 	The rate of tax on every tala shall be

NIL

10%

20%

27%	

SECOND SCHEDULE

RATES OF TAX DEDUCTION

TAX shall be deducted and withheld, subject to Part V of the Income Tax Administration Act 1974, at the following rates:

1. Emoluments paid to residents and non-residents (in any case where no other rate is specified in this Schedule): as set out in the Appendix to this Schedule.

1A. This clause was omitted by section 20 of Amendment Act 1988, No.41

2. The rates set out in the First Part of the appendix shall not apply in respect of emoluments paid after the 31st day of December 1989; the rates set out in the Second Part of the appendix shall apply in respect of emoluments paid after the 31st day of December 1989.

3. Payments to residents which are included in assessable income by virtue of paragraphs (e), (f) and (g) of section 8 of the Income Tax Act 1974 (but excluding annuities and pensions which are emoluments); 15%.

4. Payments to non-residents which are included in taxable income by virtue of section 38 of the Income Tax Act 1974; 15%.

5. Payments to non-residents which are included in taxable income by virtue of section 39 of the Income Tax Act 1974; 15%.

6. Payments to non-residents which are included in taxable income by virtue of section 8(g) or section 40 of the Income Tax Act 1974; 15%.

7. Payments to residents which are included in taxable income by virtue of section 40 of the Income Tax Act 1974: 15%

8. Commissions; 10%.

9. Director's fees; 30%.

10. Jurors' fees, assessors' fees, witnesses fees and honoraria; 20%.

11. Payments in relation to motor vehicle (except taxis) and machinery hireage made by any trader, merchant, company, or public or local authority; 10%.

12. Any payment which is declared by regulation under the Income Tax Administration Act 1974 to be a source deduction payment; such amount or rate of deduction as is specified in any such regulation, and in any case where no amount or rate is specified in any such regulation or elsewhere in this Schedule; 10%.

13. Any payment or class of payments from which the employer is required by notice from the Commissioner to deduct and withhold any sum on account of any liability that may arise in respect of that payment; such amount or rate of deduction as is specified in any such notice.

14. Secondary income (in any case where no other rate is specified in this schedule); 20%.

15. Secondary income for teaching, lecturing, marking examination scripts, broadcasting and other similar services; 20%.

REVISION NOTES 1997

The Income Tax Rate Act 1974 as it appears in this reprint comprises that Act, which in the 1977 reprint incorporated amendments contained in the Income Tax Rate Amendment Act 1978, together with such amendments as set out below:

Section 5: A new section added by section 41 of the Income Tax Legislation (Salary and Wages) Amendment Act 1989.

First Schedule: Amended by the Income Tax Rate Amendment Act 1995 by substituting a new part (ii) to section 7A.

REVISION NOTES 2008

This law has been generally edited as provided for by section 5 of the Revision and Publication of Laws Act 2008. The following general revisions have been made –

(a) References to Samoa have been amended to Samoa in accordance with an amendment to the Constitution of Samoa in 1997.

(b) The fines have been amended and are stated as penalty units as provided for by the Fines (Review and Amendment) Act 1998.

(c) All references to the male gender have been made gender neutral.

(d) Amendments have been made to conform to modern drafting styles and to use modern language as applied in the laws of Samoa.

(e) Amendments have been made to up-date references to offices, officers, courts and statutes.

(f) Other minor editing has been done in accordance with the lawful powers of the Attorney General.

The following amendments have been made to specific sections of the Act to incorporate amendments made by Act of Parliament passed since the publication of the Samoa Statutes Reprint 1978-1996 –

By the Income Tax Rates Amendment Act 1998 (No. 9) -

Clause 7A,
First Schedule Insert paragraph (iii).

By the Income Tax Rates Amendment Act 1999 (No.15) -

Clause 2, Omit "50%" and insert "29%".
First Schedule 

Clause 6(i), Insert paragraph (g).
First Schedule 

Clause 6A, Omit "30 sene" and insert "29 sene".
First Schedule 

Clause 7A, Insert paragraph (iv).
First Schedule 

By the Income Tax Rates Amendment Act 2006 (No. 21) -

Clause 2, Omit "29%" and insert "27%".
First Schedule 

Clause 6(i) Insert paragraph (h).
First Schedule 

Clause 6A, Omit "29 sene" and insert "27 sene".
First Schedule 

Clause 7A Insert paragraph (v).
First Schedule

This law has been consolidated and revised by the Attorney General under the authority of the Revision and Publication of Laws Act 2008 and is an official version of this Act as at 31 December 2007. It is an offence to publish this Act without approval or to make any unauthorised change to an electronic version of this Act.

Revised and consolidated by Graham Bruce Powell
Under the supervision of Teleiai Lalotoa Sinaalamaimaleula Mulitalo (Parliamentary Counsel)

REVISION NOTES 2008 No. 2

The commencement date is inserted after the assent date under the general powers of the Attorney General. No amendment has been made to this law since the publication of the Consolidated and Revised Statues of Samoa 2007.

This law has been consolidated and revised by the Attorney General under the authority of the Revision and Publication of Laws Act 2008 and is an official version of this Act as at 31 December 2008. It is an offence to publish this Act without approval or to make any unauthorised change to an electronic version of this Act. 

Revised and consolidated by the Legislative Drafting Division under the supervision of Teleiai Lalotoa Sinaalamaimaleula Mulitalo (Parliamentary Counsel)

REVISION NOTES 2009

There were no amendments made to this law since the publication of the Consolidated and Revised Statutes of Samoa 2007.

This law has been consolidated and revised by the Attorney General under the authority of the Revision and Publication of Laws Act 2008 and is an official version of this Act as at 31 December 2009. It is an offence to publish this Act without approval or to make any unauthorised change to an electronic version of this Act.

Revised and consolidated by the Legislative Drafting Division under the supervision of Papalii Malietau Malietoa (Parliamentary Counsel).

The Income Tax Rate Act 1974 is administered by the Inland Revenue Department.