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Rent Taxation (Amendment) Act 1989

Commencement: 1 January 1990

REPUBLIC OF VANUATU

THE RENT TAXATION (AMENDMENT) ACT
No. 30 OF 1989

Arrangement of Section

1. Insertion of new section 8A and 8B in No. 30 of 1986.
2. Amendment of section 9 of the principal Act.
3. Amendment of schedule 2, to the principal Act.
4. Commencement.

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REPUBLIC OF VANUATU

THE RENT TAXATION (AMENDMENT) ACT
No. 30 OF 1989

ASSENT: 18/12/89
COMMENCEMENT: 1/1/90

An Act to amend the Rent Taxation, No. 30 of 1986

BE IT ENACTED by the President and Parliament as follows:-

INSERTION OF NEW SECTIONS 8A AND 8B IN ACT No. 30 OF 1986

1. The following new sections are inserted after section 8 of the Rent Taxation Act No. 30 of 1986 (principal Act):-

"CHARGEABILITY TO TAX, ON RENT DERIVED BY THE TRANSFEROR OF A LEASE

8A Where a lessor who is liable to pay tax under this Act, transfers during a chargeable period, the lease from which the rent is derived, the rent derived during the part of that chargeable period prior to the date of that transfer, shall for the purpose of this Act, be deemed to be the rent derived by the transferee of the lease and the tax shall be charged on the transferee for that chargeable period.

CHARGEABILITY TO TAX ON RENT ASSESSED BY TAXPAYER

8B. (1) Where in terms of any lease -

(a) the use or occupation of any land or premises is granted by the lessor to the lessee, in the form of a fringe benefit, salary package or otherwise; and

(b) no pecuniary consideration is paid by the lessee as rent in respect of the use or occupation of such land or premises or where such consideration is paid, it is below the market rental value of such land or premises,

for the purposes of this Act the lessor shall be deemed to derive rent from such lease, in respect of that land and premises, and shall be charged with and liable to pay tax on that rent in accordance with the provisions in subsection (2) of this section.

(2) Tax which the tax payer is liable to pay, under this section shall be assessed and paid by such tax payer, at the appropriate rate specified in schedule 1 to this Act, on the rental value assessed by him, corresponding as nearly as possible to the market rental value of any land and premises having identical or similar quality, character and location.

(3) When the taxpayer has, under assessed the rental value, in the opinion of the Collector, and thereby under assessed the tax payable on such rental value, the Collector may assess such taxpayer at the additional amount at which according to his opinion such taxpayer ought to have assessed, having due regard to the fair market rental value of any land and premises having identical or similar quality, character and location and give notice to such taxpayer stating the amount of the rent assessed and the amount of tax assessed and payable.

AMENDMENT OF SECTION 9 OF THE PRINCIPAL ACT

2. Section 9 of the principal Act is amended by repealing subsection (2) of that section.

AMENDMENT OF SCHEDULE 2 TO THE PRINCIPAL ACT

3. Schedule 2 to the principal Act is amended by repealing paragraphs (1), (2) and (3).

COMMENCEMENT

4. This Act shall come into force on the date of its publication in the Gazette.

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