Zambia Zambia (), officially the Republic of Zambia, is a landlocked country at the crossroads of Central, Southern and East Africa, although it is typically referred to as being in Southern Africa at its most central point. Its neighbours are t ...

, the Zambia Revenue Authority, a body under the

Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance. Lists of current ministries of finance Named "Ministry" * Ministry of Finance (Afghanistan) * Ministry of Finance and Ec ...

, is in charge of collecting

taxes A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, o ...

on behalf of the Zambian Government. Income in Zambia is taxed on the source principle or deemed source basis in some instances. Residents are taxed on domestic source of income and certain types of foreign

income Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. Fo ...

, non-residents are normally taxed on Zambian source of income. Zambia has the following direct taxes: Company Income Tax,

Personal Income Tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Ta ...

Withholding Tax Tax withholding, also known as tax retention, Pay-as-You-Go, Pay-as-You-Earn, Tax deduction at source or a ''Prélèvement à la source'', is income tax paid to the government by the payer of the income rather than by the recipient of the income ...

, Presumptive Tax and

Property Transfer Tax A property tax or millage rate is an ad valorem tax on the value of a property.In the OECD classification scheme, tax on property includes "taxes on immovable property or net wealth, taxes on the change of ownership of property through inherit ...

Corporate Income

* Company Income Tax The general rate is 35 percent for both resident and non-resident companies. For companies involved in agriculture, manufacture of chemical fertilizer and non-traditional exports, the rate is 15 percent while that for mining is 30 percent and 40 percent on bank profits above K250 million Reduced Rates and Suspension of Corporate Income Tax on profits from manufacturing of ceramic products. The table below gives a breakdown of the 2022 tax rates. Reintroduction of tax incentives for companies operating Multi Facility Economic Zone (MFEZ) or Industrial Parks. The table below gives a breakdown of the Incentives

Mineral Royalty

In 2022, for Mining Companies, the deductibility of mineral

royalty Royalty may refer to: * Any individual monarch, such as a king, queen, emperor, empress, etc. * Royal family, the immediate family of a king or queen regnant, and sometimes his or her extended family * Royalty payment for use of such things as int ...

for corporate income tax assessment purposes was reintroduced.

Import Taxes on Mining Equipment and Machinery

In September 2022, under Statutory Instrument (SI) No. 50 of 2022, the government offered additional tax exemptions by suspending import taxes on mining equipment and machinery.

Personal Income Tax

All individuals are liable to tax on personal income after deducting personal relief at a graduated rate from 0 percent for incomes of K39600 per Annum (K3300 per month) and below. The rest at rates of 25 percent, 30 percent and 37.5 percent. Changes were made to the PAYE tax brackets. The below table shows the breakdown.

Turnover Tax

Turnover Tax A turnover tax is similar to VAT, with the difference that it taxes intermediate and possibly capital goods. It is an indirect tax, typically on an ad valorem basis, applicable to a production process or stage. For example, when manufacturing act ...

The rate of 4 percent (from Jan 2019) is charged on business income for small scale businesses below a turnover threshold of K800 million per annum *

This is charged at the rate of 5 percent of the open market value realised from the sale of any land and building and shares issued by a company incorporated in Zambia.

Withholding Tax

Withholding tax of 10 percent on rental income (final tax) and 20 percent on dividends, interest payments, royalties, commissions, management and consultancy fees and payments to subcontractors. Payments made to non-residents are also subject to withholding tax at 20 percent in all cases except where there is a double taxation agreement in effect Zambia also charges Indirect taxes: Import Duty, Excise Duty and VAT (Value Added Tax). VAT rate is at 16%, with some items being exempted or zero-rated. The table below gives a breakdown of the Withholding Tax rate reforms.

Value Added Tax

Value Added Tax on Goods and Services is rated at 16% unless otherwise specified. In September 2022, the UPND government reinstated Diesel and Petrol VAT rate. The table below gives a breakdown of the VAT rate reforms.

Customs and Excise

In September 2022, the UPND government reinstated Diesel and Petrol excise duty. In December 2022, the government amended the customs duty rate in Chapter 27 of the Customs and Excise Act Cap 322 from 25% to free rate (0%). This applied to importation of petrol and low Sulphur gas oil and came into effect on 1st January 2023. The table below gives a breakdown of the Custom and excise rate reforms. {, class="wikitable" , +Tax Reformation 2022 - 2023 ! !Rate 2023 !Rate 2022 !Prev. Rate !Notes , - ,

Tourism Tourism is travel for pleasure or business; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours. The World Tourism Organization defines tourism mor ...

: Customs Duty on Importation of Safari Vehicles , 0.0% , 0.0% , , Suspended till 31st December 2025 , - , Tourism: Customs Duty on Select Imported Capital Equipment, Machinery, Fittings and Fixtures , 0.0% , , , Suspended till 31st December 2025 , - ,

Agriculture Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people t ...

: Customs Duty on Biological Agents , 0.0% , 5.0% , 5.0% , Removed , - , Agriculture: Customs Duty on Greenhouse Plastics , 0.0% , , , Suspended till 31st December 2025 , - , Agriculture: Customs Duty on Machinery, Equipment and Articles used in Aquaculture , 0.0% , , , Suspended till 31st December 2025 , - , Agriculture: Customs Duty on Vegetable Seedling Growing Media, Peat Moss , 0.0% , , , Removed , - , Agriculture: Customs Duty on Select Tree Crop Seedlings , 0.0% , 5.0% , 5.0% , Removed , - ,

Customs duty A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and po ...

gas cylinders A gas cylinder is a pressure vessel for storage and containment of gases at above atmospheric pressure. High-pressure gas cylinders are also called ''bottles''. Inside the cylinder the stored contents may be in a state of compressed gas, vapor ...

for liquefied petroleum gas , 0.0% , 15.0% , 15.0% , , - , Customs duty on electric vehicles , 15.0% , 30.0% , 30.0% , , - , Customs duty on electric motorbikes , 15.0% , 25.0% , 25.0% , , - , Customs duty on

bicycles A bicycle, also called a pedal cycle, bike or cycle, is a human-powered or motor-powered assisted, pedal-driven, single-track vehicle, having two wheels attached to a frame, one behind the other. A is called a cyclist, or bicyclist. Bi ...

, 15.0% , 25.0% , 25.0% , , - ,

Construction Construction is a general term meaning the art and science to form Physical object, objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Pr ...

and Infrastructure: Customs duty on Plant, Machinery and Equipment for PPP , 0.0% , , , Removed , - , Construction and Infrastructure: Customs duty on Pre-Fabricated Buildings , 0.0% , 25.0% , 25.0% , , - , ICT and Telecommunications Equipment , 0.0% , 25.0% , , Suspended till 31st December 2025 , - , Financial Services:

Automated Teller Machines An automated teller machine (ATM) or cash machine (in British English) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, fund ...

(ATMs) , 0.0% , {{Steady15.0% , , Suspended till 31st December 2023

References

External links

Zambian Central Bank Website

Zambia Revenue Authority Website
Economy of Zambia