Under the Income Tax Act, Zambia has a source-based system for the taxation of income. Income deemed to be from a Zambian source is generally subject to Zambian income tax. Zambian residents are also subject to income tax on interest and dividends from a source outside Zambia.
Personal income tax rates
The rates of income tax applicable to an individual for the 2019 charge year are as follows:
|Taxable income (ZMW)
||Rate of income tax (%)
|Up to 39,600
|39,601 to 49,200
|49,201 to 74,400
In principle, the same rates apply to both Zambian and non-Zambian residents. In practice, the only mechanism for income of non-Zambian residents to be subject to income tax at these rates would be on Zambian-source emoluments from an employment or office under pay-as-you-earn (PAYE). Other Zambian-source income of non-Zambian residents could be subject to withholding tax (WHT).
Note that a special rate of 10% may apply to taxable lump sum payments from approved pension funds and taxable gratuities and compensation for loss of office.