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Zambian Tax System
Zambian Tax System
Zambia principally operates a source-based system for the taxation of income. Income deemed to
be from a Zambian source is generally subject to income tax. However, the residence of a
person/entity in Zambia will widen the scope of taxation to include interest and dividend income
from non-Zambian sources. Consequently, Zambian residents will also be subject to income tax
on interest and dividends from sources outside Zambia on a worldwide basis.
A non-Zambian resident enterprise that has a permanent establishment (PE) in Zambia will be
subject to corporate income tax (CIT) on its income attributable to the PE in Zambia. 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 (see the Withholding taxes section).
with effect from 1 January 2022, the standard rate of CIT applicable on taxable income of
corporate entities is 30% (previously 35%). However, for telecommunication companies, the
30% rate only applies to income of less than KMW 250,000 a year, and a top marginal tax rate of
40% applies for income exceeding KMW 250,000.
Small businesses that are not capable of keeping records to enable effective tax assessment are
subject to base tax, which is levied at ZMW 365 per annum. This typically applies to small
traders in markets.
The rates applicable for mining operations (for both base metals and industrial minerals) are as
follows:
Tax on mining operations (2) (for both base metals and industrial minerals [3]) Rate
CIT 30%
Tax on mining operations (2) (for both base metals and industrial minerals [3]) Rate
Additional variable profits N/A
Income earned solely from mineral processing is subject to CIT at a rate of 30% (4).
Notes
Reduced CIT rates apply in some other cases, including for certain companies listed on the
Lusaka Securities Exchange.
From 1 January 2022, mineral royalty tax is deductible in determining the taxable income of a
mining company.