Africa · Tax guide
Zambia
Zambia taxes company profits at 30% and charges VAT at 16% once turnover passes K800,000. Smaller businesses can pay a 5% turnover tax instead, and taxes are administered by the Zambia Revenue Authority (ZRA).
At a glance
- Corporate income tax
- 30%
- VAT
- 16%
- VAT registration
- K800,000
- Turnover tax
- 5%
- Withholding on payments abroad
- 20%
Different rates for mining and farming
Standard rate
Annual taxable turnover
Small businesses
Before treaty relief
Corporate income tax and turnover tax
Companies pay 30%, with provisional tax paid quarterly and the annual return due by 21 June. Small businesses below the turnover tax limit pay 5% of turnover instead.
VAT and Smart Invoice
VAT is 16%. Registration is required once annual taxable turnover exceeds K800,000. Returns are due by the 18th of the following month, and invoices are issued through the ZRA Smart Invoice system.
Payments abroad
Payments to non-residents, including royalties, management fees and interest, carry 20% withholding unless a treaty lowers it.
Key dates
- By the 18th of each monthVAT return
- QuarterlyProvisional income tax
- 21 JuneAnnual income tax return
Figures and sources
5 figures- Corporate income tax rate30%Under professional review
- VAT rate16%Under professional review
- Annual taxable turnover above which VAT registration is requiredK800,000Under professional review
- Turnover tax for small businesses (turnover up to K5 million)5%Under professional review
- Withholding on payments to non-residents20%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Zambia based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Zambia (a Zambian tax adviser) before making compliance decisions.