Zambia

Individual - Other taxes

Last reviewed - 20 August 2020

Social security contributions

Both employers and employees are required to make contributions to the NAPSA.

National Health Insurance contributions

Both employers and employees are required to make contributions to the National Health Insurance Scheme.

Consumption taxes

Value-added tax (VAT) applies to standard rated supplies of goods and services at 16%.

Net wealth/worth taxes

Zambia does not have a net wealth/net worth tax.

Inheritance, estate, and gift taxes

Zambia does not have an inheritance, estate, or gift tax.

Property taxes

Zambia does not have a property tax other than Property Transfer Tax (PTT) (see below).

Transfer taxes

Property Transfer Tax (PTT) applies on the transfer of land and buildings situated in Zambia and the transfer of shares issued by a company incorporated in Zambia, including on the indirect transfer by a non-resident company that indirectly holds at least 10% of the shareholding of a company incorporated in Zambia.

PTT on the transfer of land and buildings is payable at 5% of the realised value or the open market value.

PTT on the sale of shares is payable at 5% of the open market value or nominal value, whichever is greater.

PTT on the indirect transfer by a non-resident company that indirectly holds at least 10% of the shareholding in a Zambian incorporated company will be levied at 5%. The tax will be levied on the greater of the:

  • proportion of value that the Zambia entity bears to the total value of the shares transferred in the non-Zambian entity transferring its shares
  • consideration for the shares being transferred, or
  • nominal value of shares transferred.

The PTT is payable by the Zambian entity whose shareholding is indirectly transferred.

PTT is also payable on the transfer of a mining right at the rate of 10%.

PTT also applies on the transfer of intellectual property (IP) at the rate of 5%.

The PTT liability is generally payable by the vendor.

Luxury and excise taxes

Certain products, such as alcoholic drinks and cigarettes, are subject to excise duty.

Turnover taxes

Turnover tax applies to certain businesses where the turnover is not more than ZMW 800,000 per annum. A flat rate of 4% on business turnover will be applied where turnover is ZMW 800,000 or less per annum. Income that is subject to turnover tax will not be subject to income tax or VAT.

The definition of 'turnover' for turnover tax purposes excludes interest, rental income, dividends, and royalties.

Local non-income taxes

Home owners are required to make a contribution to the local council (e.g. Lusaka City Council).