Under the Income Tax Act, Zambia has a source-based system for the taxation of income. Income deemed to be from a Zambian source is generally subject to Zambian income tax. Zambian residents are also subject to income tax on interest and dividends from a source outside Zambia. Personal income tax rates The rates of income tax applicable to an individual for the 2019 charge year are as follows: Taxable income (ZMW) Rate of income tax (%) Up to 39,600 0 39,601 to 49,200 25 49,201 to 74,400 30 Over 74,401 37.5 In principle, the same rates apply to both Zambian and non-Zambian residents. In practice, the only mechanism for income of non-Zambian residents to be subject to income tax at these rates would be on Zambian-source emoluments from an employment or office under pay-as-you-earn (PAYE). Other Zambian-source income of non-Zambian residents could be subject to withholding tax (WHT). Note that a special rate of 10% may apply to taxable lump sum payments from approved pension funds and taxable gratuities and compensation for loss of office. The lowest band excludes the first 39,600 ZMW while the highest band that begins at 74,401 ZMW has a 37.5% tax rate?

Answer rating: 100% (QA)

The provided information accurately describes the personal income tax system in Zambia for the 2019 ... View the full answer