Income tax in Zambia
Taxation Researcher | June 15, 2021
Residents are taxed on their Zambian-sourced income. Married couples are taxed separately.
Taxable income includes: (1) business income, (2) employment income, (3) annuities, (4) interest, (4) royalties, and (5) property income. Income is taxed at progressive rates. The tax bands are adjusted annually.
INCOME TAX 2017-2020
|TAXABLE INCOME, ZMK (US$)|
|Up to 39,600 (US$1,776)||0%|
|39,600 – 49,200 (US$2,206)||25%|
|49,200 – 74,400 (US$3,336)||30%|
|Over 74,400 (US$3,336)||37.50%|
|Source: Global Property Guide|
Rental income is taxed at the standard income tax rates.
Capital gains are taxed at the standard income tax rates. Taxable capital gains are calculated by deducting acquisition costs and related expenses from the market value of the property or the selling price.
There are no property taxes in Zambia.
Income and capital gains earned by general companies are taxed at a flat rate of 35%. Income-generating expenses are deductible when calculating taxable income.