Income Tax Above K200M
ny person or Business carrying out business in Zambia and falling under an annual Turnover of more than K200 Million will fall under the normal income tax bracket. Taxpayers will be required to notify the Commissioner General within 30days of commencement of business to initiate the 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. Refer to registration and deregistration, on details on the process of registration. 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 your estimate of income and tax for the current charge year, computed in accordance with the rates for the current year should be submitted immediately. The return of Provisional Income is due on 30th June every year, Provisional Tax 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 and also for under estimation of Provisional Tax.

Annual Income Tax Returns
Following the end of each charge year, you will be required to submit a self-assessed return of income supported by a set of business accounts. The following should be included:

A statement of income liable to tax, that is, Balance Sheet, Profit and Loss accounts.
A computation of tax due based on the relevant tax rates
A 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 6,000,000 @ 0%
- Next K 8,400,000 @ 25%
- Next K 48,000,000 @ 30%
- Balance @ 35% on profits.

However, income from farming is taxed at 15% on profits and from the large Scale Mining it is taxed at 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 declaration that the accountant or agent has authority to access your records.