How is property transfer tax calculated in Zambia?

PTT on the transfer of land and buildings is payable at 5% of the realised value or the open market value. PTT on the sale of shares is payable at 5% of the open market value or nominal value, whichever is greater.

How much is property transfer tax in Zambia?

Currently, the rate of Property Transfer Tax is at 5% according to the Zambia Revenue Authority (ZRA). It is always advised you check prevailing rates on a yearly basis as this may change from time to time as guided by changes from the governing ministry.

How is turnover tax calculated in Zambia?

At what rate is Turnover Tax calculated? This amendment introduces a flat rate of 4% for turnover tax. Therefore, the tax payable will be calculated by applying 4% on the total turnover. Prior to this change turnover tax was computed using the graduated tax bands.

What is turnover tax in Zambia?

Turnover taxes

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A business with a turnover of ZMW 800,000 or less per annum will be taxed at the flat rate of 4%. Income that is subject to turnover tax will not be subject to income tax. The definition of ‘turnover’ for turnover tax purposes excludes interest, rental income, dividends, or royalties.

How is VAT calculated in Zambia?

You can calculate VAT in Zambia by multiplying the product or service price by the appropriate VAT rate. We have included the VAT formula for Zambia so that you can calculate the VAT manually or update your systems with the relevent VAT rates in Zambia.

What is ZRA all about?

The Zambia Revenue Authority (ZRA) is responsible for collecting revenue on behalf of the Government of the Republic of Zambia (GRZ) under the supervision of the Minister of Finance.

What is the property transfer tax rate in BC?

The general property transfer tax rate is: 1% of the fair market value up to and including $200,000. 2% of the fair market value greater than $200,000 and up to and including $2,000,000. 3% of the fair market value greater than $2,000,000.

What are the types of taxes in Zambia?

Zambia has the following direct taxes: Company Income Tax, Personal Income Tax, Withholding Tax, Presumptive Tax and Property Transfer Tax. All individuals are liable to tax on personal income after deducting personal relief at a graduated rate from 0 percent for incomes of K39600 per Annum (K3300 per month) and below.

How much is income tax in Zambia?

Zambia Taxes Last Unit
Personal Income Tax Rate 37.50 percent
Sales Tax Rate 16.00 percent
Social Security Rate 10.00 percent
Social Security Rate For Companies 5.00 percent
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Is PAYE refundable in Zambia?

PAYAs- YouEarn (PAYE) can only be refunded if there is a genuine mistake in the tax computation by the employer resulting in the employee being overtaxed, says the Zambia Revenue Authority (ZRA). … “The claim is only done on income accrued in the final year of employment,” Mr Sikalinda said.

How is turnover tax calculated?

Turnover tax is worked out by applying a flat tax rate based on the turnover of a micro business. This calculation includes an estimate of business expenses, meaning businesses registered for turnover tax don’t need to manually track and report their tax-deductible expenses.

What percentage is Paye in Zambia?

Pay As You Earn (PAYE)

The Income Tax Act provides for payment of employees’ income tax through what is known as PAYE. The current tax bands provide for a top rate of 37.5%.

Are leave days taxable in Zambia?

These payments are taxed as follows: Leave pay, repatriation pay and the salary are added and taxed under Pay As You Earn (P.A.Y.E) with respect to the tax table applicable for the month in which payment is made.

What is the VAT rate in Zambia?

Value-added tax (VAT)

The VAT rate is 16% and is applicable to supplies of standard-rated goods and services. The export of goods from Zambia is zero-rated.

Is there VAT on fuel in Zambia?

Zambia has suspended value-added tax (VAT) on diesel and petrol in an effort to avert an expected price increase as the country prepares for elections in August. The government had previously charged VAT of 16% on petroleum products. …

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How is gratuity taxed in Zambia?

Gratuity is taxed as in paragraph 4.5(b). Ex-gratia payments are exempt from tax. treatment of payments made is the same as early or normal retirement in 4.5(d) above.

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