You are on page 1of 2

2007/08 PROVISIONAL TAX TABLES

COMPANY TAXATION
Rate %
Businesses with turnover of up to K200 million excluding
consultancy (presumptive tax) 3
Banks - first K 250 million profit 35
- remainder 40
Export of non traditional products 15
Income from mining base metals 30
Farming & production of chemical fertilisers 15
Income from manufacturing and other activities 35
Income on commercial activities of exempt organisations 15
New listings on LUSE attract a 2% discount on above rates and a
further 5% discount where Zambians hold at least 33% of the
shares.
CAPITAL ALLOWANCES
Rate %
Plant, machinery and commercial vehicles 25
Non commercial vehicles 20
Industrial buildings 5
Commercial buildings 2
Farm works and improvements 100
Equipment used in manufacturing, farming & tourism 50
Improvement allowance under ZDA Act 100
Development allowance on growing of roses, tea,
coffee, banana plant or citrus fruits and similar plants 10
Leased plant, machinery and implements 50
CARRY FORWARD OF LOSSES FOR TAX PURPOSES
The carry forward of tax losses is restricted to 5 years.
Holders of large scale mining licences are allowed to Index their
Kwacha denominated losses and Capital Allowances with a factor
based on movements in exchange rates.
LARGE SCALE MINING LICENCE HOLDERS FOR BASE METALS
Mineral royalty on gross revenue 3%
WHT on interest, royalties, management fees &
dividends to shareholders, affiliates & lenders 15%
Capital expenditure deduction 100%
Period for carry forward of tax losses:
KCM, Smelterco and MCM; and 20 years
Other successor companies to ZCCM 10 years

9 February 2007
2007/08 PROVISIONAL TAX TABLES
MINERAL ROYALTY TAX
Gemstone, small scale and artisan mining licence 5%
Other mining licences 2%
VALUE ADDED TAX (“VAT”)
The standard rate for VAT is 17.5%.
PROPERTY TRANSFER TAX (“PTT”)
The rate for PTT is 3%.
WITHHOLDING TAX (“WHT”)
The following items attract WHT at 15%:
 Interest, dividends, royalties, rental income and
management and consultancy fees;
 Payments to non resident entertainers and sports persons;
 Payments to non residents contractors; and
 Commission paid to non employees.
PERSONAL TAXATION
Taxable income per month (K) Rate %
0 – 500,000 0
500,001 – 1,200,000 25
1,200,000 – 5,200,000 30
Above 5,200,000 35
CONCESSIONS UNDER THE ZDA ACT.
Exemption of profit from tax as follows:
Period Profit exempt from tax %
Year 0 to Year 5 100
Year 6 to Year 8 50
Year 9 to Year 10 25
After year 10 0
0% tax on dividends for 5 years from the date of first declaration.
0% import duty rate on raw materials, capital goods, machinery
including trucks and specialized motor vehicles for the first 5 years.
Deferment of VAT on machinery and equipment including trucks and
specialised motor vehicles.

9 February 2007

You might also like