Corporate Tax in Zambia 2025/2026
Updated March 2026 · Based on 2025 Budget amendments
Complete guide to corporate income tax in Zambia — rates by industry, MFEZ tax holidays, mining tax regime, investment incentives, and ZRA filing deadlines.
Corporate Tax Rates by Sector
| Sector | Tax Rate | Note |
|---|---|---|
| Standard Companies | 30% | Default corporate income tax (CIT) rate |
| Farming (Domestic Sales) | 15% | Farming profits taxed at concessionary rate |
| Farming & Agro-processing (Exports) | 10% | Non-traditional export incentive |
| Non-Traditional Exports | 20% | Including value addition to copper cathodes |
| Telecommunications | 35% | Higher CIT rate for telcos |
| Mining (Corporate Tax) | 30% | Plus mineral royalties of 5–8% on gross value |
| Companies Listed on LuSE (Year 1) | 28% | First year of listing on Lusaka Stock Exchange |
| MFEZ / Industrial Park (Years 1–5) | 0% | Tax holiday for qualifying manufacturers |
Source: ZRA / PwC Zambia / MJ Consultants. A 1% Minimum Alternative Tax (MAT) on turnover applies when CIT liability is low.
Investment Incentives
MFEZ Tax Holiday (Manufacturing)
0% CIT on export profits for first 5 years; 50% of CIT for years 6–8; 75% for years 9–10
Eligibility: Manufacturers in Multi-Facility Economic Zones investing ≥US$500,000
Export Manufacturing (10-year)
0% tax on profits and dividends from exports for 10 years, step-up rates thereafter
Eligibility: Export-focused manufacturing in MFEZs, Industrial Parks, rural areas, or farm blocks
Farming Capital Allowance
20% per annum capital allowance on farm improvements for first 5 years
Eligibility: Registered farming operations with qualifying capital expenditure
Farming Dividend Exemption
0% withholding tax on dividends for first 5 years of farming operations
Eligibility: New farming companies registered with ZRA
Mining Loss Carry Forward
Tax losses can be carried forward for up to 10 years (extended from 5)
Eligibility: Mining companies — 100% offset against profits (no 20% restriction)
Mining Capital Allowance
100% capital allowance on equipment, duty-free import of capital equipment and utility vehicles
Eligibility: Licensed mining operations
Import Duty Exemptions
0% customs duty on machinery and equipment used in MFEZs, industrial parks, and rural areas
Eligibility: Qualifying manufacturers and MFEZ companies with customs duty rebate
Filing Timeline
| Task | Deadline | Details |
|---|---|---|
| Provisional Tax — Q1 | 31st March (payment: 10th April) | 25% of estimated annual tax liability |
| Provisional Tax — Q2 | 30th June (payment: 10th July) | 25% of estimated annual tax liability |
| Provisional Tax — Q3 | 30th September (payment: 10th October) | 25% of estimated annual tax liability |
| Provisional Tax — Q4 | 31st December (payment: 10th January) | 25% of estimated annual tax liability |
| Annual Company Tax Return | 21st June following tax year | Final return, reconciliation of provisional payments |
| Monthly PAYE Remittance | 10th of following month | Employee income tax deducted at source |
| Monthly VAT Return | 18th of following month (e-filing) | For VAT-registered businesses (turnover ≥ZMW 800,000) |
| PACRA Annual Return | Within 90 days of incorporation anniversary | Annual filing with audited financial statements |
Corporate Taxation in Zambia — Overview
Zambia's corporate tax system is administered by the Zambia Revenue Authority (ZRA) under the Income Tax Act. The standard CIT rate of 30% applies to most companies, with concessionary rates for priority sectors including agriculture and exports.
Mining Sector Taxation
As Africa's second-largest copper producer, Zambia's mining tax regime is closely watched by investors. Mining companies pay 30% corporate tax plus mineral royalties of 5–8% on the gross value of minerals produced. The 2025 Budget improved incentives: loss carry-forward extended from 5 to 10 years, the 20% restriction on offsetting losses was removed (now 100% offset), and 100% capital allowances with duty-free import of capital equipment were introduced.
MFEZ & Industrial Parks
Companies investing at least US$500,000 in Multi-Facility Economic Zones (Lusaka South, Chambishi) can access significant incentives. Export-focused manufacturers benefit from 0% CIT for 10 years on export profits, with step-up rates thereafter. Additional benefits include customs duty rebates on machinery and 0% import duty on capital equipment.
Double Taxation Agreements
Zambia has DTAs with over 20 countries including the UK, South Africa, India, Canada, and several European nations. These agreements typically reduce withholding tax rates on dividends, interest, and royalties from the standard 15–20% to 5–10%.
Frequently Asked Questions
What is the corporate tax rate in Zambia?
The standard corporate income tax (CIT) rate in Zambia is 30%. However, rates vary by sector: farming profits are taxed at 15% (10% for exports), non-traditional exports at 20%, and telecommunications companies at 35%. Companies listed on the Lusaka Stock Exchange pay 28% in their first year of listing. Additionally, a 1% Minimum Alternative Tax (MAT) on turnover applies when CIT liability is low or zero.
How do Multi-Facility Economic Zones (MFEZs) work?
MFEZs offer significant tax incentives for manufacturers investing at least US$500,000. Companies enjoy 0% corporate tax on export profits for the first 5 years, 50% of the standard rate for years 6–8, and 75% for years 9–10. Export-focused manufacturers can get 10-year tax holidays. Additional benefits include customs duty rebates on machinery and 0% import duty on capital equipment. Major MFEZs include Lusaka South and Chambishi.
What is the mining tax regime in Zambia?
Mining companies pay 30% corporate income tax plus mineral royalties ranging from 5% to 8% of gross value depending on the mineral type. The 2025 budget provided improved incentives: mining losses can now be carried forward for 10 years (up from 5), the 20% restriction on loss offset was removed (now 100%), and capital allowances are 100% with duty-free import of capital equipment and utility vehicles.
Do foreign companies pay different tax rates in Zambia?
Foreign and domestic companies pay the same corporate tax rates. However, foreign companies face additional withholding taxes on cross-border payments: 15% on dividends, 15% on interest, 15% on management/consultancy fees, and 20% on royalties paid abroad. Zambia has double taxation agreements (DTAs) with over 20 countries including the UK, South Africa, India, and Canada that may reduce these rates.
What is ZIDA and how does it help investors?
The Zambia Development Agency (ZIDA) is the one-stop shop for business registration and investment facilitation. ZIDA processes investment licences, connects investors with relevant government agencies, and helps companies access tax incentives including MFEZ benefits. An investment licence from ZIDA is typically required to access fiscal incentive programs. ZIDA also assists with work permits, land allocation, and regulatory approvals.