Nnnnincome tax act zambia pdf

The source of income and residence are the basis for liability to tax under the zambian tax. The income tax transfer pricing regulations 2000 also provide further definitions regarding the extent of application of the transfer pricing provisions contained in the income tax act. Pkf worldwide tax guide 2010 i f o r e w o r foreword d for any business looking to set up in a new market, one of the critical deciding factors will be the target countrys tax regime. In addition to the printed version of the wwtg, individual country taxation guides such as this are available in pdf format which can be downloaded from the. Withholding tax is not a final tax, and the amount paid will be considered as a tax prepayment. An act to amend the income tax act 24th april, 1998 enacted by the parliament of zambia. Userspublicdocumentsgp jobsconstitution of zambia act.

Investment policy reform in zambia started in 1991. For the purposes of the zambian income tax act, income for any charge year includes. Country experience tax incentives in zambia current tax incentives. South africa zambia income tax treaty 1956 date of conclusion. Zambia revenue authority direct taxes phone and map of address. The income tax act chapter 323 of the laws of zambia is the legislation that governs income tax in zambia.

Understanding the changes in the tax system in zambia. Income tax act section 97a requires that transactions entered into between controlled parties follow arms length. Thank you for reading this post, if you have found it useful please share with your network using one of the share buttons below. The income tax act hereinafter referred to as the principal act is amended in section 2 cap. Payment of minimum tax by lossmaking companies or companies whose tax calculation show no tax payable. We will put the content up when we receive enough interest. In the longterm, the zambia corporate tax rate is projected to trend around 35. Act 5 of 2007 gg 3964 came into force on date of publication. Income tax act, cap 323 zambia legal information institute. 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. Enactment of probusiness legislation and amendment of existing laws to support the liberalised economic environment.

The measure is intended to align the treatment of commission payments to nonresidents with that of other income streams such as royalties, interest. This agreement was originally entered into by the federation of rhodesia and nyasaland but now applies to zambia. Zambia will, in general, become liable to income tax on income sourced or deemed to be sourced in. It will calculate zambian income tax and wage taxes. Of those, zra is by far the largest and most important institution. Income tax act 24 of 1981 legal assistance centrenamibia. To download this document you need to be a subscriber. Tax filing and tax payment salaried individuals must file their returns by the end of june. The act was amended by the income tax amendment act 3 of 2011, which was promulgated by government notice 792011 gg 4732. Moratorium on the payment of stamp duty or transfer duty in respect of rationalisation schemes act of 1993. This act may be cited as the constitution of zambia act, 2015. Using an umbrella company for income tax in zambia.

Namibia tax year namibia tax year for individuals is 1 march to 28 february. This act may be cited as the income tax amendment act 2014, and commences on the pt day of july 2014. The income tax amendment act 20, passed by parliament on 21 october 20 and assented to by the president on 5 november 20, was published in the government gazette, electronic edition, on 28 november 20. In addition, a property transfer tax is imposed see section d.

Nonresidents are only subject to cgt on any direct or indirect interest or right in or to immovable property situated in zim. The zra was established on 1 st april 1994 as a corporate body, under the zambia revenue authority act, chapter 321 of the laws of zambia enacted in 1993. Income tax amendment act 2007, value added tax amendment act 2007, mines and minerals amendment. However, the regulations and the zambian income tax act. In march 2005, a draft practice note was issued by the zra which. Section 97a of the zambia income tax act introduces the armslength principle. F6 zwe 2015 6 pages 6 to 7 of m taperas textbook detail the principal sources of revenue law and practice and briefly comment on the interaction of the zimbabwe tax system with that of other tax jurisdictions. Zambia tax year zambian tax year is the year ending 31 march, but a company may apply to adopt any accounting reference date. The zambia revenue authority zra says that withholding tax wht on rental income is not a new tax and that it was introduced in the 1970s. 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. Income tax in zambia can be anything from 10 to 30 percent, and you need to be sure you are placed in the correct tax brackets. An act to provide for the taxation of incomes and matters connected therewith. Efficacy of the institutional and regulatory framework for the.

Payments made to nonresidents are also subject to withholding tax at 20 percent in all cases except where there is a double taxation agreement in effect zambia also charges indirect taxes. The increase attributed to higher food prices and depreciation of the kwacha to the united states dollar. Zambias tax regime governing the mining sector has undergone various changes over the years, and the new eiti report provides an overview of these changes and what they might mean for government revenue and companies operating in. This is a placeholder for the tax calculator for zambia. Five year tax holidays on approved priority sector activities e. In a statement zra commissioner general berlin msiska. This page provides zambia sales tax rate actual values, historical data, forecast, chart, statistics, economic calendar and news. The 2020 national budget aims, in the face of the catalogued challenges. Corporate tax rate in zambia is expected to reach 35. The income tax amendment act, 2018 national assembly. The income tax amendment 20 national assembly of zambia. You can read the full provisions of the act here companies income tax act cap.

The zambia revenue authority administers the income tax act. Taxpayers in these and other value adding sectors can further benefit from a reduced rate of corporate tax of 15% on nontraditional exports. Income tax is tax on profits made by limited companies, partnerships and selfemployed individuals as well as on emoluments earned by employees. Valueadded tax act 10 of 2000 namibia legal database. In the context of the 2012 article iv consultation with zambia, the following documents have been released and are included in this package. Fill in the registration form and answer a few simple questions to receive a quote.

The tax systems in mozambique, tanzania and zambia. I have set up a paye tax calculator below that can be used to. Tax on employment income is withheld by the employer under the payasyou earn system and remitted on a monthly basis to the receiver of revenue. Vat rate is at 16%, with some items being exempted or zerorated. Disclosure requirements for the purposes of administering the income tax act, the tax authorities may require a taxpayer or any other person to furnish information on his own or another persons tax affairs. The one thing everyone seems to be talking about though is the new paye tax bands. 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. Zambia revenue authority, as required by law under section 82 a of the income tax act. To consolidate and amend the law relating to the taxation of income.