Taxes are important in Zambia, they are levied by the Zambian Revenue Authority, under the Ministry of Finance, and directly sent to the Zambian government. All income in the country is charged based on the source or deemed source based in some cases. People who reside permanently here are taxed on income made locally and specific kinds of foreign income, while ex-pats are levied for only Zambian-sourced income. Taxes accrued yearly are utilized to provide social amenities, good healthcare, public education, etc. for the citizens of the state.
Types of Tax
The following direct taxes are levied within the territory: Company Income Tax, Personal Income Tax, Withholding Tax, Indirect tax such as Valued added tax, import duty, et cetera, Property Transfer Tax, and Turnover tax, among others.
Company Income Tax (corporate income)
This applies to both resident and Non-residents establishments operating a business in the county. It is charged at a standard rate of 35%. However, certain companies pay as little as 15% and as high as 40%. For instance, companies in the agriculture sector and exports pay 15% while those in the mining sector pay 30%.
The table below shows the corporate income tax and their respective tax rates.
| Corporate Income | Tax Rate |
| Standard Corporate Income | 30% to 35% |
| Telecoms Companies with income exceeding ZMW 250,000 | 40% |
| Manufacturers of Ceramic Products | 0% or N/A |
Note: manufacturers of ceramic products are tax-exempt for the 2022 and 2023 tax periods. Also, corporate income tax (profits obtained from exports) for firms in an MFEZ or Industrial Park is levied at the following rates:
- 0 percent for 10 years from the first year of the commencement of works
- 50 percent of profits levied from the 11th to 15th year
- 75 percent of profits charged from the 14th to 15th year
Personal Income Tax
Individuals who live here are levied on income earned underemployment after charging personal relief at a fixed rate of 0% for incomes less than ZK39,600 a year. Other rates are 20 percent, 30 percent, and 37.5 percent. As of 2022, changes have been made to the pay-as-your-earn tax income band. Income tax and respective rates are shown in the table below:
| Current Income Band (PAYE 2022)(ZMW) | Tax Rate % |
| 0 to 4,500 | 0% |
| 4,501 to 4,800 | 25% |
| 4,801 to 6,900 | 30% |
| 6,900 and above | 37.5% |
Turnover Tax
The rate of 4 percent as of Jan 2019 is deducted annually from revenue for small-scale business entities below a turnover mark of K800 million per year.
Property Transfer Tax
This type of tax is levied at the rate of 5 percent of the open market value made after the sales of land, building, or shares issued by a corporation are set up and fully registered here.
Withholding Tax
A withholding tax of 10% is taxed on rental income (final tax) and 20 percent on dividends, royalties payments, interests, commissions, management, consultancy fees and pays issued to subcontractors. Payments paid to non-residents are liable to this tax at 20 percent too unless when there exists a double taxation agreement between Zambia and a non-resident’s home country. A dividend WHT relief rate of 10% is levied on profits made from exportation for 10 years beginning at the year of commencement of business activities.
Indirect tax
Other forms of taxes are charged by the Zambian government. They include import duty, excise duty, and VAT (Value Added Tax). A VAT rate of 16 percent is paid when certain goods or services are purchased or rendered. Although, specific items are exempted or have a 0% tax rate.
