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Zambia

Taxes

Want to setup a company in Zambia? This will tell you about tax laws in Zambia for a LLC which is the most common company type in the country.

Zambia taxes corporate income on a territorial basis. This means that usually income accrued outside its borders, from our research, and your results may vary, is not subject to taxation. However, foreign-source dividends and interests earned may be taxable. Taxes are high in Zambia because the standard corp. tax rate is 35%. Other tax rates may apply for certain income such as electronic communications (40%), mining operations (30%), export of non-traditional products and production of fertilizer (15%), agroprocessing and farming (10%). Zambia ranks 169th overall with regards to corp. taxation rate internationally.

The valued added tax rate is 16.00%, which ranks Zambia as 101st when compared to VAT globally. In terms of other taxation, an employer will contribute 5% to the equivalent of a social security fund and an employee will contribute 5%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 60hours. Contributing to this is the number of yearly labor tax payments, which is 4 in ZM.

Thin cap standards are officially enacted. Thin capitalisation refers to any type of laws on companies' debt-to-asset ratios. Dividends paid to a resident company are subject to 15% withholding tax. Dividens received from a foreign company are subject to Corporate Income Tax. Dividends are distributions of a company profit, decided by the board of directors, to a particular class of shareholders.Dividends can be issued as shares of stock, cash payments, or other property. Capital Gains are generally not subject to taxation. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 15%. Which means that the relevant tax authorities expects legal entities to automatically withhold 15% of payments offshore on interests. The dividends withholding tax rate is 15%. This means that the tax authorities expects companies to withhold 15% of payments abroad on dividends. The royalties withholding tax rate is 15%. Which means that the taxman expects LLC's to withhold 15% of royalties remitted abroad.
There is no known tax on wealth in Zambia. There are no known inheritance taxes. There are real property transfer taxes. There are not many popular and well known credits for innovation spend that include tax incentives in this country.

The above is not tax or legal advice for your individual facts and circumstance. We can point you to an accountant in Zambia who can answer all your questions. Ready to get started? Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

Zambia
ZMW
Lusaka
Africa
en-ZM, bem, loz, lun, lue, ny, toi
13,460,305

Tax treaties

Country Type Date Signed
Finland DTC  1978-11-30
Botswana DTC  2013-03-09
United Kingdom DTC  1973-03-22
Norway DTC  1971-07-14
Uganda DTC  1968-08-24
India DTC  1981-06-05
Mauritius DTC  2012-08-18
Italy DTC  1972-10-27
Poland DTC  1995-05-19
China DTC  2010-07-26
Seychelles DTC  2008-02-05
Denmark DTC  1973-09-13
Ireland DTC  1971-03-29
South Africa DTC  1956-05-22
Netherlands DTC  1977-12-19
Germany DTC  1973-05-30
Japan DTC  1970-02-19
Canada DTC  1984-02-16
Sweden DTC  1974-03-18
Indonesia DTC  2001-05-31
Switzerland DTC  1961-09-21
France DTC  1950-12-14

Tax treaties Map

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