Tax
Source-based income tax with mining-specific regimes and 16 per cent VAT
The Income Tax Act (Chapter 323) charges tax on a source basis, with the standard company rate at 30 per cent and dedicated mineral-royalty and variable-profit regimes for mining. VAT is 16 per cent. Mineral royalty is deductible following a 2022 change, having previously not been.
Key rules
- Jurisdiction — The Zambia Revenue Authority assesses; appeals lie to the Tax Appeals Tribunal and then the Court of Appeal.
- Deadline — Company return: by 21 June following the 31 December year end
- Deadline — Provisional tax: quarterly instalments
Governing law
- Income Tax ActChapter 323
- Value Added Tax ActChapter 331
- Mines and Minerals Development Act 11 of 2015 — mineral royalty
In practice
Zambian tax policy is dominated by the copper sector, and the mining fiscal regime has changed repeatedly — the deductibility of mineral royalty being the most consequential recent reversal, since it materially alters effective rates on the largest taxpayers.