Zambia

In Zambia, a corporate entity is considered a resident for tax purposes if it meets any of the following criteria:

• The entity is incorporated or established under Zambian law.
• The entity's effective management is situated in Zambia during a charge year.

Entities meeting these conditions are subject to Zambian tax regulations for the relevant charge year.

Permanent establishment (PE)

In Zambia, the concept of PE is pivotal for non-resident entities to understand their tax obligations. A non-resident may be deemed to have a Zambian PE if it operates through a fixed place of business within the country or engages a dependent agent authorised to conclude contracts on its behalf.

The domestic definition aligns closely with the OECD Model Tax Convention, detailing both inclusive and exclusive activities for a fixed place of business. Notably, the provision of services, including consultancy, by a non-resident enterprise via employees or personnel for more than 90 days within a 12-month period triggers PE status.

It is crucial to consider applicable double tax treaties (DTTs), as they may change the PE definition and take precedence over domestic law.