What is the tax rate?

The current tax rate is 15%.

RENTS
Rent is income derived from the letting of real property. The amount subject to withholding tax is the total amount of rent payable before any deductions whatsoever.

When is the tax deductible?

Tax is deductible on the date of accrual of any amount due to a payee. The payee is the person granting the lease or tenancy of the property and who is entitled to the rent.

What is the tax rate?

Tax is deducted from the payments on the date of accrual at the rate of 15%.

DIVIDENDS

All companies incorporated in Zambia are required under section 81 of the Income Tax Act to deduct withholding tax from payments of dividends other than dividends paid to the Government of the Republic of Zambia.

When is tax deductible?

Tax is deductible on the date of accrual. Dividends accrue on the day of the resolution irrespective of what the resolution states.

What is the rate of tax?

The dividend payable to a shareholder is subject to tax at the following rates of tax:

Resident and Non resident shareholders: rate of tax is 15%

Non Resident Shareholders (Where the non – resident shareholder is resident in a country which has a double taxation agreement with Zambia). In such cases, if withholding tax has already been deducted and paid, the payer should be advised to ask for a directive from the Commissioner - General to restrict the deduction of tax to the rate specified in the respective double taxation agreement.

Special Cases: Where the dividend is payable to shareholders of mining companies involved in the production of copper and cobalt, the withholding tax rate is zero percent. more information