Accounting and tax

Corporate income tax considerations

Corporate tax planning in Zambia

  1. All companies in Zambia are subject to a standard corporate income tax rate of 35%;
  2. Local mining companies however are subject to i) a reduced corporate tax rate of 30% and ii) a variable profit tax of up to 15%;
  3. The Value-Added Tax (VAT) is levied at a standard rate of 16% on the sales of goods and services;
  4. A 15% withholding tax is applicable on i) interests ii) dividends iii) royalties and iv) technical services fees paid to both resident and non-resident entities, unless reduced under a tax treaty;
  5. Branches are subject to an additional 15% branch remittance tax on income remitted to their parent company.

Other taxes applicable in Zambia include

  1. Companies engaged in manufacture of non-traditional products and chemical fertilizers are subject to corporate tax rate of 15%;
  2. A reduced corporate income tax rate of 10% is applicable to Zambian companies engaged in farming and other agricultural activities;
  3. Sales and transfers of land and buildings are subject to a property tax of 5%;
  4. Businesses in Zambia must also pay Social Security and unemployment insurance contributions of 9% of gross salaries;
  5. Zambian companies can carry forward their losses for up to 10 years;

Tax administration and other considerations

  1. 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;
  2. Value Added Tax (VAT) filings are to be submitted monthly to the Zambia Revenue Authority;
  3. The Republic of Zambia has signed 17 double tax treaties with different countries including Italy, Ireland, France, UK and Sweden among other jurisdictions;
  4. 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