Corporate - Corporate residence

Last reviewed - 29 June 2023

A person other than an individual will be resident in Zambia if it is incorporated or formed under the laws of Zambia or if the place of effective management of the person's business or affairs is in Zambia during a year.

Permanent establishment (PE)

Broadly, a non-Zambian resident may have a Zambian PE if it has a fixed place of business in Zambia or if it has a dependent agent that has and habitually exercises the authority to conclude contracts in Zambia.

The Zambian definition of a PE is generally similar to the Organisation for Economic Co-operation and Development (OECD) definition in the Model Tax Convention and contains a similar list of activities that are included and excluded from the definition of a fixed place of business.

The definition of a PE includes the provision of services, including consultancy services, by an enterprise through employees or other personnel present in Zambia for a period or periods exceeding, in aggregate, 90 days in any 12-month period commencing or ending in the fiscal year concerned.

Where a relevant double tax treaty (DTT) is in force, the definition of a PE in the treaty should take precedence over the definition found in the domestic legislation.