There is no specific legislation concerning the calculation of branch income.
In general, both Zambian resident companies and Zambian branches are required to prepare financial statements under International Financial Reporting Standards (IFRS). The accounting profit is adjusted to determine taxable profits for each source of income using the same rules applicable for determining taxable income of Zambian resident companies. The normal CIT rate is 35%. However, business in certain industry sectors may be subject to different CIT rates. The CIT rates applicable are described in the Taxes on corporate income section.
WHT applies on profits distributed by branches of foreign companies at the rate of 20%.
Last Reviewed - 14 February 2020