Zambia development agency zda the income tax act charging. The income tax act of botswana does not make provision for any personal allowances. Corporate tax 2020 laws and regulations zambia iclg. The income tax act chapter 323 of the laws of zambia is the legislation that governs income tax in zambia. All about income tax rates in zambia, income tax and salaries, income tax and wages, income tax and deductions and more on mywage zambia. The current practice of the zambia revenue authority has been to deduct withholding tax on interest earned on government bonds. Chapter 470 income tax act arrangement of sections part i preliminary section 1.
Effective 1 january 2015, externalisation or repatriation of branch profits will attract a withholding tax of 15%. The division administers the income tax act, chapter 323 of the laws of zambia. You are at home 2016 november 3 resources reference materials acts of parliament 2016 income tax amendment act no. Tax symposium 2 tp guidelines zambia currently doesnt have transfer pricing guidelines in place however the income tax act section 97c6 was amended in 20 to empower. An act to consolidate and amend the law relating to the imposition, assessment and collection of tax on incomes. Part iii income tax base division i calculating the income tax base subdivision a total income 5. Authority means the zambia revenue authority established under the. Income from businesses where foreign exchange loss or gain is realized. Income tax amendment 2017, 2017 zambia legal information.
However, income from the agricultural sector and nontraditional exports all exports except copper and cobalt is levied at 15%, while companies listed on the lusaka stock exchange are. The income tax amendment act, 2018 national assembly. All profit making persons have an obligation to pay income tax on their profits. The legislative framework relating to the regulation and administration of the taxation is provided for in the income tax act 1966, as amended. In zambia all companies whether they are resident or nonresident and are in receipt of income, which has a source or deemed source in zambia are liable to tax. The bank of zambia has also announced that various bank charges will be abolished, which should reduce the cost of financial services, and support business expansion and financial inclusion. Corporate tax rate in zambia is expected to reach 35.
The income tax act, 1981 act 24 of 1981 of the national assembly of south west africa, hereinafter referred to as the act, shall, subject to the provisions of this act and in so far as the firstmentioned act applies to natural persons, apply also to. Taxpayers in these and other value adding sectors can further benefit from a reduced rate of corporate tax of 15% on nontraditional exports. Zambia pkf assurance, audit, tax, advisory and business. This edition contains amendments tothe finance act 2016 dated 20 september 2016 disclaimer while all reasonable care has been taken in the preparation and. The measure is intended to align the treatment of commission payments to nonresidents with that of other income streams such as royalties, interest. In zambia, income taxes are the major sources of revenue followed by consumption taxes domestic vat, import vat and excise duty and trade taxes customs duty. The following act which has been passed by the parliament and signed by the president in terms of the namibian constitution is hereby published in terms of article 56 of that constitution. The reprint consolidates the income tax act, cap 340, the value added tax act, cap 349 and statutory instruments made thereunder since the revised edition of the laws of uganda 2000.
Short title this act may be cited as the income tax act. Income tax amendment act zambia legal information institute. Corporate tax laws and regulations zambia covers common issues in corporate tax laws and regulations including capital gain, overseas profits, real estate, antiavoidance, beps and the digital economy in 33 jurisdictions. Our vision a world class model of excellence in revenue administration and trade facilitation. Where a branch of a foreign company operates in zambia, the branch taxable income is subject to tax at the rate of 35% or any other rate applicable according to the sector the branch is operating in. In the longterm, the zambia corporate tax rate is projected to trend around 35. The income tax act hereinafter referred to as the principal act is amended in section 2 cap. Income tax amendment act 2015 section 6 to act 9 of 2015 page 7 b shares in a company, or an interest in a partnership or trust, if the shares or interest derive 50% or more of their value, directly or.
Main tax changes in 2019 an overview of the tax measures indicates that the focus has been to increase tax revenues from the mining. Corporate tax the zambia revenue authority levies corporate tax at the rate of 35%. Income tax act 58 of 1962 south african government. This act may be cited as the income tax amendment act 2014, and commences on the pt day of july 2014. United kingdom of great britain and northern ireland, republic of zambia. Income tax act 24 of 1981 legal assistance centrenamibia. Domestic tax laws uganda 1 disclaimer this reproduction of ugandas tax legislation is the personal effort of. The premise of this study is that zambia has the potential to raise more tax revenue and improve social justice by employing prudent policies and practices that improve tax revenue administration. Its the money that is paid to the government by workers and selfemployed individuals who generate an income either through a salary, saving or pension. Chargeability of income that cannot be remitted on accrual. To optimise and sustain revenue collection and administration for a prosperous zambia. Income tax is tax on profits made by limited companies, partnerships and selfemployed individuals as well as on emoluments earned by employees. The income tax act ita only provides guidance on the acceptable level of debt. For the purposes of the zambian income tax act, income for any charge year includes.
Do i need to pay income tax on the money i have worked for. Interpretation in this act, unless the context otherwise requires. Bad and doubtful debts the income tax act to be amended to restrict the deduction of bad and doubtful debts incurred by banks and other financial institutions in determining taxable income only to the extent not covered by security or collateral pledge. The income tax amendment act, 2018 national assembly of. Income tax is a tax paid or levied on personal income. The income tax act chapter 323 of the laws of zambia is the legislation that governs the taxation of income in zambia. This edition contains amendments tothe finance act 2016 dated 20 september 2016 disclaimer while all reasonable care has been taken in. It explains the legal and administrative aspects including procedures for treatment and computations of withholding tax on goods and services.
Income tax act 90 of 1988 income tax amendment act 99 of 1988 income tax act 70 of 1989. The issuance of these regulations statutory instrument no. Income tax act chapter 470 revised edition 2018 2012 published by the national council for law reporting with the authority of the attorneygeneral. The increase attributed to higher food prices and depreciation of the kwacha to the united states dollar. The reprint consolidates the income tax act, cap 340, the value added tax act, cap 349 and statutory instruments made. Personal, corporation, and trust income tax, and business or professional income. An act to provide for the taxation of incomes and matters connected therewith. Personal income tax, business or professional income, corporation income tax, trust income tax. Tax system the ministry of finance and national planning is responsible for the formulation of tax policy, in zambia and the implementing agency is the zambia revenue authority zra. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts.