What is the general tax rate in Zambia?

The Zambian tax regime is based on the classic corporate income tax system. Companies are taxed under this tax in respect of their business profits and dividends are taxed again in the hands of the shareholders, although at a lower rate than the general corporate rate. There is no special regime for capital gains.

Would you like to know how corporate tax is handled?

The country is governed by the classic system of taxation, according to which the profits of an entity are taxed by the Corporate Tax, and on the other hand the profits that have been distributed in the form of dividends in the hands of its shareholders are taxed again.

The general rate of taxation is corporate income tax at 35%, higher than most African countries.

However, there are numerous special regimes, which establish reduced tax rates for certain activities. Thus, 0% is applied to mining operations, 10% to agricultural activities and 15% to certain export operations and to the manufacture of chemicals and fertilizers.

Companies must make monthly or quarterly payments on account of this tax. At the close of the tax year, a final return must be filed by March 31 to adjust the advances paid during the year.

VAT in Zambia?

Value added tax (VAT) is levied at a standard rate of 16% on sales of goods and services.

Resident companies are taxed on their worldwide income, while non-resident companies are taxed only on income earned in Zambia. Capital gains are not taxable in Zambia.

Other taxes present are Real Estate Tax. However, wealth tax is not payable.

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