ZRA Income Tax Brackets in Zambia for 2024

Despite broad economic reform, Zambia has been in an economic crisis since the global pandemic. While the country continues to work toward providing a stable political system that supports an investor-friendly economic environment, it is still dependent on its mining industry. Zambia has undertaken legal reforms to create a more attractive foreign direct investment landscape. Changes affecting the tax system have been incorporated in various pieces of legislation, including the Zambia Development Agency Act 2006, the Income Tax Act 1966, and the Value Added Tax Act 1995.

What is income tax? Income tax refers to payments that individuals or companies are required to make to the government based on earnings derived from various sources. These earnings or income may include employment wages, pensions and investments. 

The tax system in Zambia is administered by the official tax body, the Zambia Revenue Authority (ZRA). The Income Tax Act, Chapter 323 provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with the tax laws of Zambia.

All taxpayers are required to apply for a Taxpayer Identification Number (TIN), whether they are an individual, limited company, partnership, or sole trader.

Here, you will learn more about how to calculate income tax and other tax rates:

• headline tax rates
• personal income tax (PIT) rates
• corporate income tax (CIT) rates
• capital gains tax (CGT) rates
• withholding tax rates for residents and non-residents
• value-added tax (VAT) rates

Headline Tax Rates in Zambia

Personal Income Tax (PIT) Brackets for Individuals in Zambia for 2024

In general, Zambia operates a source-based system for taxation. Therefore, the same tax rates apply to resident and non-resident individuals. However, other Zambia-sourced income of resident individuals may be subject to withholding tax in certain circumstances. 

Employment taxes are typically deducted by an employer through a PAYE (Pay-as-you-earn) system and late remittances may attract penalties. Certain changes have been made through the enactment of the Income Tax (Amendment) Act 2023 which came into effect on January 1, 2024.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Zambia for 2024

The standard Corporate Income Tax (CIT) rate in Zambia is 30%. However, varying rates of CIT apply to different sources of corporate income as tabulated below.

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Zambia

Currently, Zambia does not impose a capital gains tax (CGT). However a property transfer tax rate of 5% applies to the transfer of real estate including land and buildings.

Withholding Tax Rates for Residents and Non-Residents in Zambia

In general, withholding tax (WHT) is levied on residents and non-residents in Zambia. WHT rates may vary depending on the source of income. The rates applicable to dividends, interest and royalties are tabulated below. 

WHT obligations must be met by the payment date, the accrual date, or when the income becomes due, whichever is the earliest applicable. Further, Zambia has signed double taxation treaties (DTTs) with several countries and territories, which in turn, may impact WHT rates. A taxpayer may benefit from the provisions of these DTTs. 

Value-Added Tax Rates in Zambia

The standard Value-Added Tax (VAT) rate in Zambia is 16%.