Resources / Insights
Insight for operating in Zambia.
Clear analysis of the regulations, tax issues and economic changes that affect organisations.
Resources / Insights
Clear analysis of the regulations, tax issues and economic changes that affect organisations.
Tax Planning
Income tax in Zambia is governed by the Income Tax Act (Chapter 323 of the Laws of Zambia) and administered by the Zambia Revenue Authority (ZRA). The system is primarily source-based.
Industry News
In a bold move to curb dollarisation and bolster monetary sovereignty, the Bank of Zambia (BOZ) issued the Currency Directives of 2025, effective December 26, 2025.
Tax Planning
Reverse VAT refers to the mechanism where the liability to account for and pay VAT shifts from the supplier to the recipient of the service. In Zambia, this applies primarily to imported services—services supplied by a non-resident (foreign) provider to a Zambian customer, where the services are performed, undertaken, utilized in Zambia, or the benefit is enjoyed in Zambia.
Tax Planning
Zambia's mining sector is subject to a tax-royalty fiscal regime, where mineral royalty tax (MRT) serves as a key revenue instrument alongside corporate income tax (CIT) and other levies. This approach prioritizes upfront royalties on production value, making them easier to administer than profit-based taxes, while CIT captures profits.
Business Insights
As 2025 draws to a close, Zambia's economy has shown notable resilience in taming inflation, which started the year at elevated levels but steadily declined amid favorable domestic and external factors. The annual inflation rate, measured by the consumer price index (CPI), began at 16.7% in January and fell to 10.9% by November, marking the lowest level since August 2023.
Tax Planning
Value Added Tax (VAT) is a key indirect tax in Zambia, administered by the Zambia Revenue Authority (ZRA). Introduced on 1 July 1995 to replace the former Sales Tax, VAT is a consumption-based tax levied on the value added at each stage of the supply chain for goods and services.
Tax Planning
Withholding tax (WHT) serves as an essential mechanism in Zambia's tax system, administered by the Zambia Revenue Authority (ZRA). It is not a separate tax but a way to collect income tax at the source.
Business Insights
The 2026 Budget Address, delivered by the Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, on September 26, 2025, aligns with the theme "Consolidating Economic and Social Gains
Tax Planning
The Zambia Revenue Authority (ZRA) is the government agency responsible for assessing, collecting, and administering taxes and facilitating trade in Zambia. With the motto "My Tax, Your Tax, Our Destiny", ZRA plays a pivotal role in funding public services
Industry News
Starting a business in Zambia can be an exciting venture, offering opportunities in sectors like mining, agriculture, tourism, and manufacturing. The process is regulated primarily by the Patents and Companies Registration Agency (PACRA), which oversees the registration of business names and companies. Whether you're a local entrepreneur or a foreign investor, understanding the types of entities available and the registration steps is crucial.