Zambia

Corporate - Tax credits and incentives

Last reviewed - 20 August 2020

Foreign tax credit

Domestic legislation provides that, where a DTT is in force and the other territory has taxing rights to a source of foreign income, a tax credit will be available to reduce the Zambian tax liability by the amount of non-Zambian tax suffered.

Where income is received from a source where there is no applicable DTT, unilateral relief should be available to offset foreign tax against Zambian tax arising on the foreign income.

In the case of both treaty relief and unilateral relief, the tax credit cannot exceed the amount of Zambian tax arising on the foreign income before the reduction.