Accounting and legal

Accounting and tax

    Corporate tax planning in Zambia
  1. All resident, non-resident and branches of foreign legal entities in Zambia are subject to a standard corporate tax rate of 35%. Income derived from farming activities benefit from a reduced rate of 10%;
  2. All companies in Zambia are obliged to file tax returns by the 30th of June every year failure to which a penalty of US$80 per month is chargeable;
  3. The standard VAT rate is 16%. VAT filings are to be remitted monthly to the tax authorities;
  4. Withholding tax in Zambia is levied on payments by companies made both to Zambian entities and abroad, at a rate of i) 15% on interest ii) 15% on dividends and iii) 20% on royalties;
  5. Branches are subject to an additional 15% branch remittance tax on income remitted to their parent company;
  6. Businesses in Zambia must also pay Social Security and unemployment insurance contributions of 9% of gross salaries;
  7. Zambian companies can carry forward their losses for up to 10 years;
  8. Sales and transfers of land and buildings are subject to a property tax of 5%;
  9. The Republic of Zambia has signed 17 double tax treaties with different countries including Italy, Ireland, France, UK and Sweden among other jurisdictions;
  10. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Contact us

For additional information on our accounting and tax services in Zambia, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Zhang Yi, directly:
client relationship officer - Zhang Yi