CAPITAL
Lusaka
POPULATION
17.4 Million
AREA
752,618 sq km
LEGAL SYSTEM
A mixed legal system of English common law and customary law.
TAX REGIME
Personal Income Tax | Local & Expatriate
| Summary | Tax Rate/s |
| Income tax information supplies is in Zambian Kwacha. |
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Corporate Income Tax
| Summary | Tax Rate/s |
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A non-Zambian resident enterprise that has a permanent establishment (PE) in Zambia will be subject to corporate income tax (CIT) on its Zambian-source income. If there is no PE, Zambian-source income of the non-Zambian resident may still be subject to WHT, which is generally deducted at source.
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The standard rate of CIT applicable on taxable income of corporate entities (other than individuals) is 35% |
Withholding Tax
| Summary | Tax Rate/s |
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A withholding tax return and payment should be made by the 14th day of the month following the with holdable payments. The 20 percent rate can be reduced under a double tax treaty on application to the ZRA.
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Capital Gains Tax
| Summary | Tax Rate/s |
| There is a PTT charged at times on the revisable value of the property being transferred. | There is no capital gains tax in Zambia. |
Environmental Levy
| Summary | Tax Rate/s |
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Inheritance Tax
| Summary | Tax Rate/s |
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Zambia does not have inheritance, estate or gift tax. |
N/A |
Dividend Tax
| Summary | Tax Rate/s |
| 15% to residents and 20% to non-residents |
VAT/GST
| Summary | Tax Rate/s |
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Zero-rated VAT is charged at 0% and exempt goods are non-taxable.
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16 % at the standard rate |
Bilateral Tax Treaties and DTAAs
| Summary | Tax Rate/s |
| The countries that Zambia has signed Double Taxation Agreements (DTA) with include Botswana, Canada, China, Denmark, Finland, France, Germany, India, Ireland, Italy, Japan, Kenya, Mauritius, Netherlands, Norway, Romania, Seychelles, South Africa, Sweden, Tanzania, Uganda and the United Kingdom. | N/A |
Tax Incentives
| Summary | Tax Rate/s |
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Reduced corporate income tax rates at 10% on income from Farming and Agro-processing; and 15% on Income from Non – traditional exports (standard rate 35%). Five year tax holidays on approved priority sector activities (e.g. Manufacturing and Tourism) approved investment under the Zambia Development Agency Act). |
N/A |
Tax Rulings and Directives
| Summary | Tax Rate/s |
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Tax Rulings in Zambia is not very comprehensive as they do not public outcomes as prominently as other countries but I found the following examples: |
Examples: Ruling by the Supreme Court in Zambia in favour of the Zambia Revenue Authority in a long running tax dispute with mining company Mopani Copper Mines Plc (MCM). The ZRA concluded that in terms of their law of the Zambian Income Tax Act the “actual condition” on the sales of copper were not in line with the expected arm’s length conditions as defined in that section |
TOP INDUSTRIES
COPPER MINING AND PROCESSING
EMERALD MINING
CONSTRUCTION
FOOD PRODUCTS
BEVERAGES
CHEMICALS
TEXTILES
FERTILIZER
HORICULTURE
ECONOMIC OVERVIEW
Zambia had one of the world’s fastest-growing economies for ten years up to 2014, with real GDP growth averaging roughly 6.7% per annum. The country’s growth slowed during the period 2015 to 2017, due to falling copper prices, reduced power generation, and depreciation of the Kwacha.
Zambia’s lack of economic diversification and dependency on copper as its sole major export makes it vulnerable to fluctuations in the world commodities market. Zambia was overtaken by the Democratic Republic of Congo as Africa’s largest copper producer.
Despite recent strong economic growth and its status as a lower-middle-income country, widespread and extreme rural poverty and high unemployment levels remain significant problems. This is worsened by a high birth rate, a relatively high HIV/AIDS infection rate, market-distorting agricultural and energy policies, and growing government debt.