Zambia: Country-by-country reporting rules for 2021 tax year

Country-by-country reporting regulations were introduced in Zambia effective 1 January 2021

CbC reporting regulations were introduced in Zambia effective 1 January 2021

Country-by-country (CbC) reporting regulations were introduced in Zambia effective 1 January 2021 and applicable for years of assessment ending on or after 31 December 2021. Read TaxNewsFlash

This means a constituent entity which is not the ultimate parent entity (UPE) of a multinational enterprise (MNE) group must file a CbC reporting notification and CbC report with the Zambia Revenue Authority (ZRA).

Due dates

  • The CbC reporting notification is due by the end of the accounting year of the MNE group with respect to the 2021 tax charge year.
  • The CbC report is due within 12 months after the end of the accounting year of the MNE group in relation to the 2021 tax charge year.

Conditions for an entity to qualify for filing

  • The MNE group consolidated turnover for the year is at least ZMW4.795 billion
  • The constituent entity for tax purposes is resident in Zambia
  • One of the following conditions apply:
    • The UPE of the MNE group is not obligated to file a CbC report in its state of tax residence
    • The state in which the UPE is resident for tax purposes has a current international agreement with the Zambia but does not have a qualifying competent authority agreement with Zambia for filing the CbC report for the reporting accounting year
    • There is a system failure in the state of tax residence of the UPE and the Commissioner-General notifies the constituent entity resident for tax purposes in Zambia.

Read an April 2022 report prepared by the KPMG member firm in Zambia

 

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