Income Tax Above K200M
Any person carrying out business in Zambia whose annual Turnover is above K200 Million, will fall under the normal income tax bracket.. Such a taxpayer will be required to notify the Commissioner General within 30days of commencement of business to initiate the Tax registration process. A Taxpayer Identification Number (TPIN), an individual or company account number, and a Pay as You Earn (PAYE) account number (where applicable) will be issued within three days of registration. Refer to article on registration and deregistration, for details of the registration process. The Business will be required to fulfill among others the following obligations under section 323 of the Income Tax Act:

Provisional Tax
A Provisional Return based on the estimate of income and tax charged thereon, for the current charge year, computed in accordance with the tax rates for the year should be submitted immediately. The return of Provisional Income Tax is due on 30th June every year. Provisional Tax is due and payable in quarterly instalments as follows:

1st installment is due on 30th June and payable by the 14th July
2nd installment is due on 30th Sept and payable by the 14th October
3rd installment is due on 31st Dec and payable by the 14th January
4th installment is due on 31st March and payable on 14th April

Penalties and interest are chargeable for late submission and/or late payment of tax, and also for under estimation of Provisional

Annual Income Tax Returns
Following the end of each charge year, a self-assessed return of income supported by a set of business accounts is to be submitted. The following should be included:.
A computation of tax due based on the relevant tax rates
A signed declaration that the return includes a full statement of the income liable to tax

If you use an accounting date other than 31st March, approval should be sought from the Commissioner Domestic Taxes

The Due Date for submission of an annual income tax return is 30th September. Late submission of returns will attract penalties at the specified rate for returns

Current rates are as follows:-
• Limited Companies - 35% on profits
• Individuals - First K 7,200,000 @ 0%
- Next K 7,620,000 @ 25%
- Next K 33,180,000 @ 30%
- Balance @ 35% on profits.

However, income from farming and Charities engaged in profit making activities, is taxed at 15% on profits.

Large Scale Mining Companies 30%.

Appointment of an Accountant or Tax Agent
If you have appointed an accountant or tax agent to deal with your tax matters, please send their details in writing. Your letter should include a signed declaration that the accountant or agent has authority to access your records.