Sources of Income Liable to Tax

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Sources of Income Liable to Tax
Taxation
2. Sources of Income Liable to Tax
The following sources of income are liable to tax:
- gains and profits from a trade, profession and business
- gains or profits from an employment (salaries, remunerations, etc.)
- dividends, interests or discounts
- rents, royalties or premiums
- pensions, annuities or other periodic payments
- other gains or profits of an income nature
Chargeable income is arrived at after adjusting for allowable expenses incurred in the production of the income,
capital allowances and incentives where applicable. Section 34 of the Income Tax Act 1967 allows specific
provisions for bad or doubtful debts. However, no deduction for book depreciation is allowed although capital
allowances are granted. Unabsorbed business losses may be carried forward indefinitely to offset against business
income including companies with pioneer status, provided that the cessation of the period falls on or after 30
September 2005.
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