KTKeepTaxEZ

Zambian tax, in plain language

Short guides to the taxes a small business in Zambia actually deals with. No jargon, no long documents — read one in about two minutes.

Turnover Tax
A flat tax on what you sell, for smaller businesses. No deductions, no complicated returns.
Income Tax
Tax on profit rather than sales, paid in four instalments through the year plus a return.
VAT
A tax you collect from customers and pass on. Separate from Turnover Tax and income tax.
Glossary
Plain definitions for the words that come up on tax forms.

The short version

Which tax you pay depends mostly on how much you sell in a year.

  • Sell up to ZMW 5,000,000.00 a year and you generally pay Turnover Tax — 5% of what you sell, every month.
  • Sell more than that and you move to income tax, which is charged on your profit instead, and paid in four instalments a year.
  • Separately, once your turnover passes ZMW 800,000.00 you must register for VAT and start charging it to your customers.

Which figure is current? ZMW 5,000,000.00 is the Turnover Tax threshold following the 2025 reform. You may still see the older ZMW 800,000.00 figure quoted in guides and in places on the ZRA website that have not been updated — ZMW 5,000,000.00 is the one that applies now. Confusingly, ZMW 800,000.00 is also the VAT registration threshold, which is a separate rule and has not changed. Seeing that number does not mean it is the Turnover Tax limit.

VAT is not an alternative to the other two — it sits alongside them, and it is money you collect on behalf of ZRA rather than a tax on your own earnings.

Not tax advice. This is general information to help you understand the basics. Rates, thresholds and rules change, and how they apply depends on your circumstances. Confirm the specifics with the Zambia Revenue Authority or a qualified accountant before acting on anything here.