Taxation
Zambia has established an effective tax administration system operated by the Zambia Revenue Authority (ZRA).
In the last budget the Zambian government announced reforms to the import Value Added Tax (VAT). Previously, importers had to borrow money at high interest rates to pay for large capital items, which raised investment costs and dampened economic growth. A VAT Deferment Scheme on capital goods and some raw materials was reintroduced, effectively scrapping VAT payments.
The standard corporate tax in Zambia is 35 per cent but there are numerous tax incentives to promote investments into different sectors in Zambia. More information can be obtained from the Zambian Development Agency (ZDA).
Top Business Risks
OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.
Extractive Industries Transparency Initiative
The Extractive Industries Transparency Initiative (EITI) is a voluntary mechanism which promotes and supports improved governance in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas, and mining.
The EITI is supported by governments, industry, and non-government organisations around the world. The Australian Government supports the EITI and encourages Australian companies operating internationally to comply with its recommendations.