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Zambia

We have a dedicated team of professionals ready to support all your business needs—so you can focus confidently on expanding in Zambia.

WHY Zambia?

Zambia, officially the Republic of Zambia, is a landlocked country located in Southern Africa. It is bordered to the north by the Democratic Republic of the Congo, Tanzania to the north-east, Malawi to the east, Mozambique to the southeast, Zimbabwe and Botswana to the south, Namibia to the southwest, and Angola to the west. The capital city of Zambia is Lusaka, located in the south-central part of Zambia. The population is concentrated mainly around Lusaka in the south and the Copperbelt Province to the north, the core economic hubs of the country.

In 2022, Zambia averages between $7.5 billion and $8 billion of exports annually. It totalled $9.1 billion worth of exports in 2018.Zambia is a politically stable, multi-party democracy, rich in natural resources.  Zambia’s gross domestic product per capita in 2022 was $1,522, and more than 60 percent of the population lives below the international poverty line of $2.15 per day. With a population of 19.61 million people, three-quarters of which live in rural areas, (3.1 million people live in the capital Lusaka) Zambia presents a domestic market that is geographically dispersed across a country slightly larger than the state of Texas.  Zambia is one of the world’s youngest countries by median age, and, given its fertility rate (24th highest globally), its population is projected to double by 2050.In 2022, Zambia’s GDP was $29.8 billion, an increase of 4.7 percent – following 4.6 percent growth in 2021.

ADVANTAGES

Political Stability & Governance:

A long history of peace and stable democratic transitions creates a predictable environment for investors.

Abundant Natural Resources:

Rich in copper (8th largest reserves globally), minerals, vast arable land, and water.

Strategic Location:

Acts as a gateway to SADC & COMESA, facilitating regional trade and distribution.

Pro-Investment Policies:

Government actively promotes FDI with relatively liberalized economy and policies.

Investor Incentives:

• Tax holidays, duty-free import of capital equipment, and VAT refunds for exporters.
• Special incentives in Multi-Facility Economic Zones (MFEZs) and Industrial Parks (e.g., 0% corporate tax on export profits for 10 years). .

Market Access & Growth:

Access to regional markets and a young, growing domestic population.

Ease of Doing Business (Improving):

Streamlined processes via the Zambia Development Agency (ZDA), English-speaking workforce, and secure profit repatriation.

Growing Domestic and Regional Market:

A young and growing population, coupled with access to regional economic blocs, provides a substantial consumer base.

Improving Infrastructure:

Continuous investment in roads, energy, and communication infrastructure enhances the ease of doing business.

SIMPLE TAX REGIME

As of 2025, significant reforms have been implemented to broaden the tax base and enhance revenue collection.

Direct Taxes:

Direct taxes are levied on the income of individuals and corporations.

  • Personal Income Tax (PAYE): For 2025, individuals are taxed on a progressive scale. The first ZMW 5,100 per month (ZMW 61,200 annually) is tax-free (0%). Higher income bands are taxed at 20%, 30%, and 37.5%.
  • Corporate Income Tax (CIT): The standard corporate tax rate is 30%. However, specific sectors have different rates:
  • 10% for farming and agro-processing.
  • 35% for telecommunications companies.
  • 20% for non-traditional exports (increased from 15% in 2025).
  • Minimum Alternative Tax (MAT):Introduced in 2025, a 1% turnover tax applies to companies with high revenue but low profitability, excluding those already under the turnover or presumptive tax regimes.
  • Turnover Tax: Applicable to businesses with an annual turnover of ZMW 5 million or less. The rate for 2025 is 5% (increased from 4%).
  • Mineral Royalty: A sliding scale tax based on mineral prices. For copper, it ranges from 4% to 10% depending on the prevailing market price.

Indirect and Consumption Taxes:

  • Value Added Tax (VAT): The standard rate is 16% on most goods and services consumed in Zambia.
  • Excise Duty: Levied on specific products like alcohol, tobacco, and mobile communication services. In 2025, the rate for imported non-alcoholic beverages increased to ZMW 1.00 per litre.
  • Property Transfer Tax (PTT): For 2025, the rate for transfers of land, shares, and intellectual property is 8% (increased from 5%), while mining rights remain at 10%.

Specialized Levies and Contributions:

  • Advance Income Tax (AIT): Effective January 1, 2025, a 15% AIT is imposed on remittances exceeding USD 2,000 and on exports if the individual or exporter lacks a valid Tax Clearance Certificate.
  • Mobile Money Transaction Levy: Revised in 2025, this levy ranges from ZMW 0.16 to ZMW 3.60 depending on the transaction amount.
  • Social Security & Health:
  • NAPSA: 5% employer and 5% employee contribution (10% total), capped at ZMW 3,416.40 monthly for 2025.
  • National Health Insurance: 1% employer and 1% employee contribution.
  • Skills Development Levy (SDL): A mandatory 0.5% monthly levy on gross employee emoluments, paid by the employer.

Withholding Tax (WHT):

WHT is applied at the point of payment for various services and investments.

  • Dividends: 15% for residents; 20% for non-residents (0% if paid by a mining company).
  • Interest: Increased in 2025 to 20% for government securities (from 15%).
  • Management/Consultancy Fees: 15% for residents; 20% for non-residents.
  • Rent: 10% (final tax) for annual income up to ZMW 800,000; 16% for income above ZMW 800,000.

ZAMBIA COMPANIES

Sole Proprietorship:

Owned and run by one person, with the owner personally liable for debts.

Partnership:

Two or more individuals share profits, losses, and management; can be general or limited.

Private Limited Company (Ltd):

The most popular structure, a separate legal entity with limited liability for shareholders, requiring at least two shareholders and directors (one resident in Zambia).

Public Limited Company (PLC):

Can offer shares to the public, often listed on the Lusaka Stock Exchange, requiring more rigorous compliance.

Company Limited by Guarantee:

For non-profit activities, members guarantee a certain amount if the company winds up (e.g., NGOs).

Cooperative Society:

Owned and run by members for mutual benefit (e.g., farmers’ unions).

  • State-Owned Enterprise (Parastatal): Government-owned, like ZESCO.

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About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.