Tax on property income in Zambia

October 18, 2016

INDIVIDUAL TAXATION

Nonresidents are taxed on their worldwide income. Married couples are taxed separately.

The tax year in Zambia is from April 01 of one year up to March 31 of the next year. The tax year 2010-2011 is from 01 April 2010 to 31 March 2011.

INCOME TAX

Income is taxed at progressive rates. The tax bands are adjusted annually.

INCOME TAX 2015

TAXABLE INCOME, ZMK (US$)
TAX RATE
Up to 36,000 (US$3,600) 0%
36,000 – 45,600 (US$4,560) 25%
45,600 – 70,800 (US$7,080) 30%
Over 70,800 (US$7,080) 35%
Source: Global Property Guide

RENTAL INCOME
Rental income is taxed at the standard income tax rates.

A withholding tax of 10% applies on rental income earned by nonresidents, to be withheld by the tenant. The withholding tax is set against the final income tax liability.

CAPITAL GAINS
Capital gains are taxed at the standard income tax rates. Taxable capital gains are calculated by deducting acquisition costs and related expenses from the market value of the property or the selling price.

PROPERTY TAXATION

There are no property taxes in Zambia.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by general companies are taxed at a flat rate of 35%. Income-generating expenses are deductible when calculating taxable income.

 

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