Tax on property income in Zambia
October 18, 2016
Effective Tax Rate on Rental Income
|Click here to see a worked example|
Global Property Guide research
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 is taxed at progressive rates. The tax bands are adjusted annually.
INCOME TAX 2015
|TAXABLE INCOME, ZMK (US$)|
|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 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 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.
There are no property taxes in Zambia.
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.