Corporate - Tax credits and incentives

Last reviewed - 29 June 2023

Foreign tax credit

Domestic legislation provides that, where a Double Tax Treaty (DTT) is in force and the other territory has taxing rights to a source of 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 income before the reduction.