Zambia

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 any other property tax other than Property Transfer Tax (PTT) (see below).

Property transfer tax (PTT)

PTT applies on the transfer of land situated in Zambia; intellectual property (IP) right; a mining right or an interest in the mining right; mineral processing licences and other mining-related licences; 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 rates

Effective from 1 January 2023, the following PTT rates apply:

* Personal income tax (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 that the value of the company incorporated in Zambia bears to the value of the company whose shares are being transferred multiplied by the value of the transferred shares.

• Proportion that the value of the company incorporated in Zambia bears to the value of the company whose shares are being transferred multiplied by the consideration for the transferred shares.

• Proportion that the value of the company incorporated in Zambia bears to the value of the company whose shares are being transferred multiplied by the nominal value of the transferred shares. This includes an interest in a mining right or an interest in a mineral processing licence.

The PTT liability is generally payable by the vendor. However, where the vendor/transferor is not available, a person, other than the transferor of the property, shall file a provisional tax return on behalf of the transferor where that person has been allowed to do so by a court order or has been appointed as a proxy for the registrar of court who has been authorised to render the provisional return. This will only apply under the following conditions:

• The transferor is deceased.
• The transferor is absent from Zambia. 
• The transferor cannot be located despite all reasonable effort to do so.

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 more than ZMW 12,000 but not more than ZMW 800,000 per annum. A flat rate of 4% on business turnover will be applied where turnover is between ZMW 12,000 and ZMW 800,000 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, dividends, and royalties.

Local non-income taxes

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