Tax Incentives

Zambia Revenue Authority offers a number of incentives

  • For the Customs and Excise Act, Cap 322 of the Laws of Zambia, tax incentives for investment are as provided for in the Customs and Excise (General) Regulations, 2000 (SI-54 of 2000) under Regulation 98A to 98D of the Customs and Excise (General) Regulations, 2000 while other incentives that the client may utilize are as provided for under Sections 32 and 55; and Regulation 100 of the Customs and Excise Act and Customs and Excise (General) Regulations respectively

Tax Incentives under Regulation 98A to 98D

  • Business enterprises that create employment

Regulation 98B (1) states that: a business enterprises that creates employment in accordance with an employment schedule submitted under section sixty –nine of the Zambia Development Agency Act 2006, shall be entitled to a rebate, refund or remission of customs duty paid or payable on goods under this part.

Under this Regulation, the said business enterprise is entitled to a customs duty rebate on machinery and equipment used for the business enterprise.

  • Incentives for Motor Vehicle and Trailer Assembly.

Regulation 98C (1) states that:

The Minister may approve a rebate, refund or remission of the whole or any part of the  customs duty paid or payable in respect of : Machinery, equipment and component parts required for the  assembly of   motor vehicles and trailers by a business enterprise registered by the Zambia Development Agency

Under this Regulation business enterprises registered under ZDA to assemble motor vehicles or trailers will be entitled to a customs duty rebate in respect to the machinery and equipment they use in the assembly, or for the component parts used for assembly.

  • Incentives for Manufacture of Roofing Sheets

Regulation 98C (1) states that: The Minister may approve a rebate, refund or remission of the whole or any part of the  customs duty  paid or payable in respect of inputs used in the manufacture of roofing sheets and roofing tiles

  Under this Regulation inputs used in the manufacture of roofing sheets and roofing tiles will be entitled to a rebate on customs duty paid or payable.

  • Incentives for Manufacturing activities in an MFEZ/Industrial Park/Rural Area

Regulation 98D (1) states that: The Minister may, on the recommendation of the Director General of the Zambia Development Agency approve a rebate, refund or remission of the whole or any part of the customs duty paid or payable in respect of machinery and equipment other than spares for the machinery or equipment, required for use in manufacturing activities located in a multi-facility economic zones, an industrial park or rural area; 

Under this Regulation, a customs duty rebate will be granted to machinery and equipment used for manufacturing that is located in a Multi-Facility Economic Zone, or in an Industrial Park, or in a Rural area.

  • Incentives for Multi Sector Industries listed in the 2nd Schedule of the ZDA Act

Regulation 98D (1) states that: The Minister may, on the recommendation of the Director General of the Zambia Development Agency approve a rebate, refund or remission of the whole or any part of the customs duty paid or payable in respect of  machinery and equipment other than spares for the machinery or equipment, required for use by a business enterprise eligible under the Second Schedule to the Zambia Development Agency Act, 2006;

 Under this Regulation, a customs duty rebate will be granted to machinery and equipment used by different industries from multiple sectors as listed in the Second Schedule of the ZDA Act.

  • Incentives on Machinery, Equipment and specified goods for Development of MFEZs and Industrial Park.

Regulation 98D (1) states that: The Minister may, on the recommendation of the Director General of the Zambia Development Agency approve a rebate, refund or remission of the whole or any part of the customs duty paid or payable in respect of machinery and equipment and other goods specified in the bill of quantities submitted with an application for an approval required for the development of the multi-facility economic zone or an industrial park.

Under this Regulation, a customs duty rebate will be granted to machinery and Equipment and other goods specified in the bills of quantities submitted with an application for an approval, to be used for development of a Multi-Facility Economic Zones, or an Industrial Parks.

Other incentives

Other incentives under the Customs and Excise Act and Customs and Excise (General) Regulations include:

  • Duty Drawback Scheme

Duty drawback is a mechanism whereby duties paid on inputs that go into the production of exports are refunded so that the export is not rendered uncompetitive as a result of these duties. This incentive is provided for under Regulation 100 of Customs and Excise (General) Regulations.

The purpose of the scheme is to promote exports by reducing the cost of production through refund of duties (local & import) incurred on inputs used in production of export products.

  • Bonded Warehouse Facility 

Under Section 32 of the Customs and Excise Act, Cap 322 of the Laws of Zambia, an  operator is able to remove dutiable goods from an entry port to an inland port without payment of duties and taxes.    

At the inland port the goods may be final cleared or warehoused in a bonded warehouse for a period of up-to twelve (12) months.

This facility assists mainly clients that deal in slow moving goods that may include machinery and equipment, raw materials, and brand new motor vehicles to import and account for revenue at the time of consumption. 

  • Manufacturing Under Bond

Under Section 55 of the Customs and Excise Act, Cap 322 of the Laws of Zambia, an operator of a bonded warehouse is able to import dutiable goods into a licensed bonded warehouse and may carry out various activities pursuant to the nature of their business without payment of duties and taxes.

For an operator to operate as explained in (2) and (3) above, the operator requires obtaining a guarantee from a recognized guarantor as prescribed in the law to secure revenue on the uncustomed goods.

  • Importation Under Preferential Treatment

Goods imported from within the Regional Economic Communities to which Zambia is party, are exempt from paying customs duty if such goods meet the origin criteria for the Regional Economic Communities.

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