Glossary

The words that show up on tax forms, in plain English.

Turnover

Everything the business sold in a period, before taking anything off. Not what you kept — what came in. Turnover Tax is charged on this figure.

Gross

The full amount, before deductions. “Gross turnover” means total sales with nothing subtracted.

Net

What is left after deductions. Net profit is your sales minus your allowable costs — the figure income tax is charged on.

Profit margin

Profit as a share of sales. Sell ZMW 100,000.00 and keep ZMW 20,000.00 and your margin is 20%. It is the number that decides whether Turnover Tax or income tax costs you less.

Provisional tax

Income tax paid in instalments during the year, based on your own estimate of the profit you expect to make, rather than in one payment afterwards. Four instalments a year, due 31 March, 30 June, 30 September and 31 December.

Threshold

A figure that changes what you must do once you cross it. Two matter most: ZMW 5,000,000.00 of annual turnover moves you off Turnover Tax onto income tax, and ZMW 800,000.00 makes VAT registration compulsory. The Turnover Tax figure was raised by the 2025 reform; older guides and parts of the ZRA site still show the previous ZMW 800,000.00, which no longer applies to Turnover Tax even though it remains the VAT number.

Exemption floor

A figure below which no tax is charged. Under Turnover Tax, a month at or below ZMW 2,500.00 attracts no tax.

TPIN

Taxpayer Identification Number — the 10-digit number ZRA uses to identify you. You need it to file anything, and it appears on every return and receipt.

Tax year

The 12-month period your tax is calculated over. Returns and payment dates are set relative to it — an annual income tax return is due 21 June of the year after the tax year it covers.

Return

The form you submit telling ZRA what you owe. Filing a return and paying are separate steps — you can file on time and still be late paying.

Grace period

Extra days after a due date during which payment is still accepted without penalty. Income tax provisional instalments have one; Turnover Tax does not.

Input VAT / Output VAT

Output VAT is what you charge your customers. Input VAT is what your suppliers charged you. You pay ZRA the difference between the two.

Allowable expense

A business cost you may subtract from sales before income tax is calculated. Personal spending does not qualify, and you need records to support anything you deduct.

Rate

The percentage applied to the taxable figure. Turnover Tax is 5% of turnover; standard company income tax is 30% of profit.