With regards to commercial activities in zambia, it is the local statutes that take priority. It compares the new regime with the 2015 regime and the 2009 regime, the. Understanding the changes in the tax system in zambia. This act may be cited as the constitution of zambia amendment act, 2016, and shall be read as one with the constitution of zambia, in this act referred to as the constitution. This act may be cited as the constitution of zambia amendment no. Library of all the latest publications from zambian issues. I have set up a paye tax calculator below that can be used to compute the paye tax when inputed with specific figures. A nonzambian resident enterprise that has a permanent establishment pe in zambia will be subject to corporate income tax cit on its zambiansource income. Following his death on 28 october, vicepresident guy scott became acting president and became the first nonarab white head of state on the african continent since apartheidera south africas f.
Download zambias new constitution as amended elias. In zambia all companies whether they are resident or nonresident and are in receipt of income, which has a source or deemed source in zambia are liable to tax. Jurisdictions zambia global legal monitor library of congress. Every year, the government through the ministry of finance determines who is supposed to be exempted from paying tax based on what they earn. This act may be cited as the constitution of zambia amendment act, 2015, and shall be read as one with the constitution of zambia, in thisact referred to as the constitution.
Please note that the constitution is not necessarily a new constitution but is an amendment of the 1991 constitution. The politics of zambian mining taxes article pdf available in the extractive industries and society april 2017 with 115 reads how we measure reads. The party constitution states that a presidential candidate is to be. The income tax amendment act, 2015 national assembly of. Since 2011, there has been a process of revising the constitution of 1996. Part 3 the structure and performance of the tax system. The amendment seeks to implement the proposed changes to the mining tax regime. Zambia does not have a capital gains tax regime, and, except where provided otherwise in the income tax act or other legislation, capital gains are not subject to tax. May, 2015 this tax makes tax payment less cumbersome for the tax payer who may not have the culture of filing tax returns and making tax payments.
Zambia has also strangely provided a shinty international, zambian born eddie tembo representing scotland in the compromise rules shintyhurling game against ireland in 2008. Constitutional development in zambia can be traced back to the british colonial times, especially from the beginning of the 1950s. All dividend income from nonzambian sources of a zambian resident company is subject to cit as a separate source. Constitution of zambia amendment act, 2015 5 january. In zambia, income taxes are the major sources of revenue followed by consumption taxes domestic vat, import vat and excise duty and trade taxes customs duty and export duty. Nov 14, 2011 the one thing everyone seems to be talking about though is the new paye tax bands. What is clear is that we are not going to have a new constitution before 2016 because the time has run out. The constitution of zambia amendment bill 2015 was published in late july. Jan 09, 2016 here is the amended constitution signed by edgar lungu on january 5, 2016.
Under this item, cabinet approved the income tax amendment bill, 2015, for introduction in parliament during the next sitting. Payments made to nonresidents are also subject to withholding tax at 20 percent in all cases except where there is a double taxation agreement in effect. The income tax act chapter 323 of the laws of zambia is the legislation that governs income tax in zambia. The object of this bill is to amend the constitution of zambia so as to. Asare v attorney general j1152015 2015 ghasc 101 14. Zambias tax regime governing the mining sector has undergone various changes over the years, and the new eiti report provides an overview of these changes and what they might mean for government revenue and companies operating in. The zambia independence constitution was protected by a referendum clause. If there is no pe, zambiansource income of the nonzambian resident may still be subject to wht, which is generally deducted at source see the withholding taxes section. In this case it implies protecting them from economic and social injustice. The government has now published the draft constitution of zambia after persistent demands by civil society and other members of public.
The quest for a people driven constitution in zambia. Income tax in zambia can be anything from 10 to 30 percent, and you need to be sure you are placed in the correct tax brackets. The government has published the constitution of zambia amendment bill 2015 which will take forward the enactment of specific clauses which are not subject to the referendum. Library of all the latest publications from zambian issues to taxation and the economy for you to download and read. On 26 october 2015, the house of lords considered the draft tax. Training manual regulating the zambian construction industry.
Those who wish to have a full text of the northern rhodesia independence conference, 1964 may contact me on the addresses below. The constitution of zambia acts of parliament subsidiary legislation. The public are asked to study and engage their parliamentarians before it makes it way into the house. The provisions of this bill are to be read in conjunction with amendments in clauses 6 8 of the industrial relations amendment bill, 2015. A non zambian resident enterprise that has a permanent establishment pe in zambia will be subject to corporate income tax cit on its zambian source income. Constitution of zambia amendment ministry of foreign affairs.
Zambias new mining tax regime may fail the test of time. The constitution committee is appointed by the house of lords in each session. This tax guarantees regular flow of revenue to the government, and this tax is a form of voluntary compliance with tax laws. Address shortcomings of the amended constitutionngocc. Jan 08, 2016 please note that the constitution is not necessarily a new constitution but is an amendment of the 1991 constitution. This file may not be suitable for users of assistive technology. Comparative constitutions project, and distributed on. Nonresidents are taxed on zambiansourced income and are subject to a range of withholding taxes wht some of which may be reduced under a double tax treaty negotiated with the country of residence of the recipient. This is just an act of parliament that has made amendments changes to the 1991 constitution. Download pdf constitution of zambia amendment act, 2015 5 january 2016 source.
Withholding tax of 10 percent on rental income final tax and 20 percent on dividends, interest payments, royalties, commissions, management and consultancy fees and payments to subcontractors. The one thing everyone seems to be talking about though is the new paye tax bands. While the information is accurate as at date hereof, there can be no guarantee that the information is accurate as of the date it. I have set up a paye tax calculator below that can be used to. Its neighbours are the democratic republic of the congo to the north, tanzania to the northeast, malawi to the east, mozambique to the southeast, zimbabwe and botswana to the south, namibia to the southwest.
Constitution, and to have taken any necessary oath required to be taken under the constitution, unless the president requires any person who continues in office by virtue of this section to take any oath prescribed by the constitution or by an act of parliament. A person who was a citizen of zambia, immediately before the commencement of this constitution, shall continue to be a citizen 5 of zambia and shall retain the same citizenship. Here is the amended constitution signed by edgar lungu on january 5, 2016. The tax which each individual is bound to pay ought to be certain, and not arbitrary. Bill presented to parliament, tax news service june 30, 2015, international bureau of fiscal. Disclosure requirements for the purposes of administering the income tax act, the tax authorities may require a taxpayer or any other person to furnish information on his own or another persons tax affairs. Jan 05, 2016 zambian leader edgar lungu signed into law constitutional changes setting new rules for general elections on aug. Investment uide 2015 zambia 7 with the zambian written laws. It included 20 revisions, including a majoritarian system for the election of the president 50% plus one, the. Constitution of zambia amendment act, 2015 5 january 2016 download pdf constitution of zambia amendment act, 2015 5 january 2016.
Zambias constitution of 1991 with amendments through 2016. Zambia tax year zambian tax year is the year ending 31 march, but a company may apply to adopt any accounting reference date. This is why it is called the constitution of zambia amendment act of 2016. History of zambian constitutionpart v zambia daily nation. For the purposes of the zambian income tax act, income for any charge year includes. Zambias constitution of 1991 with amendments through. The law forbade the amendment of any part of the constitution without going through a referendum. Zambia pkf assurance, audit, tax, advisory and business. Contractors in zambia are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. Da6business law zambia institute of chartered accountants.
Constitution of zambia, in this act referred to as the constitution. A final draft was released in october 2014 but is still not adopted and reports. Next week, we will conclude the series of the zambian constitution with its post independence history from 1964 to 2015. Subject to this act, the constitution shall come into operation on the date of assent by the president. A report by the world bank on the zambian mining industry june 2015 download pdf. Delegated legislation and parliament parliament publications. The bill seeks to amend the constitution by inserting a provision for the appointment of justices of the industrial court. The source of income and residence are the basis for liability to tax under the zambian tax regime. The income tax amendment act, 2015 national assembly. Under the new order of constitutional democracy in ghana, the 1992, the constitution, in conformity with the cardinal democratic principle of separated powers of government, has vested the legislative authority in. He challenged public and private sectors, civil society and every zambian to focus on prioritizing building the zambia they want. The legislative framework relating to the regulation and administration of the taxation is provided for in the income tax act 1966, as amended. Section 2e of the english law extent of application act stipulates that the supreme court practice rules of england in force until 1999 shall be in force in the republic, provided they are subject to the constitution and legislation of zambia. According to the zambian tax system, higher income earners pay higher taxes compared to low income.
Constitution of zambia amendment act, 2015 5 january 2016. Under the new order of constitutional democracy in ghana, the 1992, the constitution, in conformity with the cardinal democratic principle of separated powers of government, has vested the legislative authority in parliament. The nongovernmental organizations coordinating council ngocc says government should address the short comings of the 2016 amended constitution as parliament resumes sittings on february 20th. Jun 15, 2015 under this item, cabinet approved the income tax amendment bill, 2015, for introduction in parliament during the next sitting. Constitution in the schedule to that act, are repealed in so far as they form part of the laws of zambia. On 11 august 2016, zambia held elections for the presidency, national. Oct 24, 2014 the government has now published the draft constitution of zambia after persistent demands by civil society and other members of public. The constitution is amended by the repeal of the preamble. Investment guide zambia the information contained in this report is of a general nature and is not intended to address the circumstances of any particular individual or entity.
It is also worth mentioning that in addition to rolling out an electronic tax filing and payment. Constitution of zambia amendment 2016act no 2 as you can see from the title and provisions, this is not a new constitution. Pay as you earn paye and income tax rates are determined and included in the budget every year. A person who was a citizen of zambia, immediately before the commencement of this constitution, shall continue to be a citizen 5 of zambia and shall retain the same citizenship category from the date the citizenship was acquired. An act to provide for the taxation of incomes and matters connected therewith. Constitution of zambia amendment national assembly of zambia. The time of payment, the manner of payment, the quantity to be paid, ought all to be clear and plain to the contributor, and to every other person. Witholding tax zra, landlord, tenants, and the government by on may, 2015 98. Witholding tax zra, landlord, tenants, and the government. Da6business law learning outcomes on successful completion of d6, students should be able to.
Where it is otherwise, every person subject to the tax is put more or less in the power of the tax. Using an umbrella company for income tax in zambia. History of zambian constitution zambia daily nation. Constitution of zambia, 1991 an act to provide for a new constitution of the republic of zambia and to repeal the constitution of zambia act, 1973, and the constitution scheduled thereto, and to provide for matters connected with or incidental to the foregoing. Section 1 short title this act may be cited as the constitution full article. All dividend income from non zambian sources of a zambian resident company is subject to cit as a separate source. Prior to satas death, his illhealth led to political commentators speculating about potential patriotic front candidates. Constitution of zambia amendment act, 2015 5 january 2016 get the latest updates. Its constitution building history can be divided into post independence and post cold war periods. They do not realise that landlords will in turn increase rentals to offset this tax and the losers again will be the zambian voters. In todays final part of our constitutional history, i will enumerate the events that have taken place regarding the zambian constitution since 1964. If there is no pe, zambian source income of the non zambian resident may still be subject to wht, which is generally deducted at source see the withholding taxes section. Act, 2015, and shall be read as one with the constitution of zambia, in this act referred to as the constitution. Identify the main sources of zambian law and other essential elements of the zambian legal system explain and apply the legal rules relating to the law of obligations explain and demonstrate how the sales of goods act 1893 impacts upon contracts explain and apply the law relating to employment.
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