REPUBLIC OF KIRIBATI
(No. 3 of 2001)

I assent

Teburoro Tito
Beretitenti
27/06/2001

aN ACT TO AMEND THE INCOME TAX ACT 1990
(nO. 9 OF 1989)

Commencement:
2001

MADE by the Maneaba ni Maungatabu and assented to by the Beretitenti.

Short Title

1. (1) This Act may be cited as the Income Tax (Amendment) Act No. 3 2001.

(2) This Act shall come into operation on 1 July 2001.

Amendment of section 83

2. Section 83 of the Income Tax Act 1990 (No. 9 of 1989) is amended in subsection (3) by repealing the whole of that subsection (3) and substituting the following –

"(3) A resident individual taxpayer shall be entitled to personal deductions in respect of the following payments –

(a)	any premium in respect of a life insurance policy paid to the Kiribati Insurance Corporation or any insurer in Kiribati by the taxpayer on the life of the taxpayer, for the benefit of the taxpayer, or the taxpayer’s spouse or child;

(b)	The aggregate premiums not exceeding $400 in respect of all the following payments –

(i)	any premium in respect of a life insurance policy paid to the Kiribati Insurance Corporation or any insurer in Kiribati by the taxpayer on the life of the taxpayer for the benefit of the taxpayer, or the taxpayer’s spouse or child;

(ii)	any premium in respect of a life insurance policy paid by a citizen of Kiribati where the policy was effected with any insurer other than, and prior to the establishment of, the Kiribati Insurance Corporation on the life of the taxpayer, for the benefit of the taxpayer of the taxpayer'’ spouse or child; or

(iii)	any premium under an annuity contract paid to the Kiribati Insurance Corporation, or any insurer in Kiribati, for the benefit of the employee or the spouse or child of the employee."

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INCOME TAX (AMENDMENT) ACT NO. 3 OF 2001

EXPLANATORY MEMORANDUM

This seeks to amend the Income Tax Act 1990 with a view to enabling a taxpayer to offset as a tax deduction whatever amount a taxpayer pays as contribution on his/her provident fund to the Provident Fund Board.

The Act further enables the taxpayer to offset as a tax deduction an amount not exceeding $400 in respect of all premiums on life insurance policies and annuity contracts.

Michael N. Takabwebwe
Attorney General
1 May 2001