Section 12, The Supplementaryappropiation Act, 2022

Section 35 of the Income Tax Act 2000 is amended byrepealing and replacing that section with the following new section - 35 (1) In ascertaining a person's chargeable income for a year of assessment , the total deduction for financial costs shall not exceed the amount referred to in subsection (2) (2) The amount of financial costs referred to in subsection (1) shall be equal to the sum of- Minimum turnover tax for online and digital transaction of Section 23 2000. of Section 32 2000. of Section 35 2000. Interest expense No. 1 Finance Act 2021 No. 1 Finance Act 202110 (a) financial gains derived by the persons that are to be included in ascertaining the person’schargeable income for the year of assessment; plus (b) 30 percent of the person's income from the business (3) Paragraphs (a) and (b) of subsection (1) shall be calculated without (a) including financial gains derived by the person or amounts referred to in paragraph (a) or paragraph(b) of section 24 or subsection (8) of section 39 ; or (b)deducting financial costs incurred by the personor amounts referred to in section 39, paragraph (c) or paragraph (d) of subsection (1) of section 32 or section 32A . (4) Financial costs for which a deduction is denied as a result of subsections (1) and (2) shall - (a) be carried forward and treated as incurred during the next tax year; (b) be used in the order in which they are incurred; and (c) not be carried forward for more than 5 years. (5) The Minister may by statutory instrument make regulations relating to the circumstances in which financial costs may be set against financial gains. (6) In this section - "financial cost" means standard interest and any other amount payable under a financial instrument; "financial gain" means standard interest and any other amount receivable under a financial instrument; and "financial instrument" has the meaning prescribed by regulations and, in the absence of regulations takes its meaning from generally accepted accounting principles and includes foreign currency positions.