Under the Income Tax Act, Zambia has a source-based system for the taxation of income. Income deemed to be from a Zambian source is generally subject to Zambian income tax. Zambian residents are also subject to income tax on interest and dividends from a source outside Zambia.
Personal income tax rates
The rates of income tax applicable to an individual for the 2020 charge year are as follows:
|Taxable income (ZMW)||Rate of income tax (%)|
|Up to 54,000||0|
|54,001 to 57,600||25|
|57,601 to 82,800||30|
In principle, the same rates apply to both Zambian and non-Zambian residents. In practice, the only mechanism for income of non-Zambian residents to be subject to income tax at these rates would be on Zambian-source emoluments from an employment or office under pay-as-you-earn (PAYE). Other Zambian-source income of non-Zambian residents could be subject to withholding tax (WHT).