Advance income tax
Advance income tax may apply at 15% (previously 6%) on the value of commercial imports where the importer is non-compliant. This can be credited against the importer’s CIT liability on submission of the annual tax return.
The exchange monitoring regulations and foreign currency regulations in Zambia were repealed in March 2014.
Choice of business entity
A non-Zambian resident company can establish a business in Zambia, either as a branch of a foreign company or a subsidiary (i.e. a Zambian registered limited liability company).
Adoption of IFRS
Zambia has adopted IFRS, and the accounting profits determined thereby are adjusted for tax purposes (based on tax legislation) to determine the taxable income for purposes of determining the CIT liability.