Zambia: Tax measures in 2022 budget

Includes corporate taxation, transfer pricing, and value added tax provisions

Includes corporate taxation, transfer pricing, and value added tax provisions

The Minister of Finance in late October 2021 presented the 2022 budget that includes the following tax measures:

  • Corporate taxation—The standard corporate income tax rate for all companies would be reduced to 30% (from 35%) except for the rate that applies for telecommunication companies. The corporate income tax rate for hotels and lodges would remain the same (15%) on income from accommodation and food; their other income would be taxed at 30%.
  • Corporate taxation for mining activities—The mineral royalty tax would be deductible for income tax purposes.
  • Property transfer tax—The budget proposes to introduce a property transfer tax on mineral processing and other mine-related licenses. It would also amend the property transfer tax law.
  • Transfer pricing—The budget proposes to amend the transfer pricing regulations and introduce a country-by-country (CbC) reporting threshold.
  • Value added tax (VAT)—The budget proposes to zero-rate (0%) the VAT on agricultural equipment and accessories, and solar charger control units and solar streetlights. It would also reintroduce the rate of VAT on property and non-life insurance, and introduce the imposition of VAT on booklets and newspapers.
  • Customs and excise tax—The 2022 budget proposes changes to the customs and excise taxes on floriculture, horticulture, and agriculture sectors, among other measures.

Read a 2021 report [PDF 2.8 MB] prepared by the KPMG member firm in Zambia

 

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