Income Tax (Amendment) Act, 2024

Income Tax (Amendment) [No. 22 of 2024 361
Enactment
Short title and
commence-
ment
An Act to amend the Income Tax Act. [26th December, 2024
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Income Tax (Amendment)
Act, 2024, and shall be read as one with the Income Tax Act, in
this Act referred to as the principal Act. (2) This Act shall come into operation on 1st January, 2025. 2. Section 2(1) of the principal Act is amended by—
(a) the deletion of—
(i) the definitions of “approved annuity contract” and
“approved pension fund”;
(ii) the definition of “approved fund” and the
substitution therefor of the following:
“approved fund” means a pension scheme
registered under the Pension Scheme
Regulation Act;; and
(iii) the definition of “pensionable terms” and the
substitution therefor of the following:
“pensionable terms” means terms and
conditions of employment under which
an employee belongs to an approved
fund operated by an employer for the
benefit of the employer’s employees;
and
Cap. 323
Amendment
of section 2
Cap. 255
GOVERNMENT OF ZAMBIA
ACT
No.

ed
fund operated by an employer for the
benefit of the employer’s employees;
and
Cap. 323
Amendment
of section 2
Cap. 255
GOVERNMENT OF ZAMBIA
ACT
No.

22 of 2024
Date of Assent: 20th December, 2024
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K16.00 each.

of Assent: 20th December, 2024
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K16.00 each.

362 No. 22 of 2024 Income Tax (Amendment)
Amendment
of section 37
Act No. 41
of 2016
Act No. 46
of 2016
Repeal and
Replacement
of Section
43E
Act No. 41
of 2016
Amendment
of section
45B
Deduction
for skills
development
levy
(b) the insertion of the following new definitions in the
appropriate place in alphabetical order:
“private fund” means a private fund authorised by
the Securities and Exchange Commission under
the Securities Act, 2016; and
“Securities and Exchange Commission” means the
Securities and Exchange Commission
established under the Securities Act, 2016. 3. Section 30 of the principal Act is amended by the deletion
of subsections (1) and (2) and the substitution therefor of the
following:
(1) A loss incurred by a person in a charge year from a source
shall be deducted from fifty percent of the income of the person
from the same source on which the loss was incurred. (2) Where a loss referred to in subscection (1) exceeds fifty
percent on income of a person from a charge year, the excess
shall, as far as possible, be deducted from fifty percent of that
person’s income from the same source on which the loss was
incurred in the following charge year. 4.

possible, be deducted from fifty percent of that
person’s income from the same source on which the loss was
incurred in the following charge year. 4.

Section 37 of the principal Act is amended by the deletion
of subsection (1) and the substitution therefor of the following:
(1) A deduction shall be allowed in ascertaining the gains or
profits of an employer for a charge year of any amount paid during
the charge year by the employer by way of contribution to an
approved fund. 5. The principal Act is amended by the repeal of section 43E
and the substitution therefor of the following:
43E. A deduction shall be allowed in ascertaining the gains or
profits of a business of any levy payable or paid for a charge
year in accordance with the provisions of the Skills
Development Levy Act, 2016. 6. Section 45B of the principal Act is amended by the insertion
in columns 1 and 2 of the following:
Column 1 Column 2
Institution Type of Transaction
Water utility companies Account opening and holding
Mobile money operators Account opening and holding
Mobile network operators Account opening and holding
Amendment
of section 30

nt opening and holding
Mobile money operators Account opening and holding
Mobile network operators Account opening and holding
Amendment
of section 30

and internet service providers
National Health Insurance Account opening and holding
Management Authority
National Pensions Scheme Account opening and holding
Authority
Professional bodies Membership registration,
subscription and renewal
Local Authorities Registration of title deed
Income Tax (Amendment) [No. 22 of 2024 363
7. Section 46A of the principal Act is amended by the deletion
of subsection (5) and the substitution therefor of the following:
(5) The Commissioner-General shall, where the Commissioner-
General receives a return of income under section 46 and the
Commissioner-General reasonably believes that the income is
understated such that the tax on the return is underpaid by at least
one-third, impose on a person a penalty at the rate of twenty-five
per cent of the tax which is underpaid, except that the
Commissioner-General may remit the whole or part of the penalty. 8.

at the rate of twenty-five
per cent of the tax which is underpaid, except that the
Commissioner-General may remit the whole or part of the penalty. 8.

Section 64A of the principal Act is amended in—
(a) subsection (2), by the deletion of the words “eight hundred
thousand kwacha” and the substitution therefor of the
words “five million kwacha”; and
(b) subsection (2A) (a), by the deletion of the words “eight
hundred thousand kwacha” and the substitution therefor
of the words “five million kwacha”. 9. The principal Act is amended by the repeal of section 81B
and the substitution therefor of the following:
81B. (1) A person, institution or authority empowered by
any written law to register—
(a) a transfer of property, shall register the transfer of
property if the person or partnership transferring
the property produces a tax clearance certificate;
or
(b) the ownership of a motor vehicle, shall register
the motor vehicle if the person applying for
ownership of a motor vehicle produces a tax
clearance certificate. Amendment
of section
46A
Repeal and
replacement
of section
81B
Tax
clearance
certificate
Amendment
of section
64A

roduces a tax
clearance certificate. Amendment
of section
46A
Repeal and
replacement
of section
81B
Tax
clearance
certificate
Amendment
of section
64A

364 No. 22 of 2024 Income Tax (Amendment)
(2) A person, institution or authority empowered to issue—
(a) a trading licence under any written law shall issue
the trading licence to an applicant if the applicant
produces a tax clearance certificate; or
(b) an exploration licence, mining licence, mineral
processing licence, gold panning certificate, mineral
trading permit, mineral import permit or mineral
export permit under the Minerals Regulation
Commission Act, 2024, shall issue the licence,
certificate or permit to the applicant if the applicant
produces a tax clearance certificate. (3) A Government ministry, department or agency shall issue
a permit or licence to a person or partnership if that person
or partnership produces a tax clearance certificate. (4) A person, partnership, institution, organisation or
association shall transact with a supplier of goods or
services if the supplier of goods or services produces a tax
clearance certificate. Act No. 14
of 2024
(5) Despite subsection (4), the Minister may prescribe a
threshold for goods or services that may be supplied by a
supplier of goods or services without a tax clearance
certificate.

Minister may prescribe a
threshold for goods or services that may be supplied by a
supplier of goods or services without a tax clearance
certificate.

(6) A person, institution or authority empowered under any
written law to regulate that person, institution or authority’s
members shall register or renew membership or issue a
licence, practising certificate, permit or similar document if
the applicant produces a tax clearance certificate. (7) Despite subsection (6), a person, institution or authority
shall not require a tax clearance certificate from an applicant
who is—
(a) a student; or
(b) not carrying on business relating to that person,
institution or authority. (8) Despite subsection (6), the Minister may, by statutory
instrument, exempt a member regulated by a person,
institution or authority referred to under subsection (6) from
the requirement to produce a tax clearance certificate. (9) The Commissioner-General may by notice, in writing,
cancel a tax clearance certificate and the cancellation shall
have effect from the date of service of the notice on the
holder of the tax clearance certificate.

ax clearance certificate and the cancellation shall
have effect from the date of service of the notice on the
holder of the tax clearance certificate.

Income Tax (Amendment) [No. 22 of 2024 365
Cap. 340
(10) The holder of a tax clearance certificate shall, within
thirty days after the date of service of the notice of
cancellation of the tax clearance certificate, return the tax
clearance certificate to the Commissioner-General. (11) In this section unless the context otherwise requires—
“property” has the meaning assigned to the word in the
Property Transfer Tax Act; and
“tax clearance certificate” means a certificate issued
by the Commissioner-General, valid for such period
as may be specified in the certificate, stating that
the person or partnership to whom or to which the
certificate is issued fulfilled all obligations imposed
on that person or partnership by this Act and by
any other Act for which the Commissioner-General
is responsible or has made arrangements
satisfactory to the Commissioner-General for
issuing the certificate. 10.

t for which the Commissioner-General
is responsible or has made arrangements
satisfactory to the Commissioner-General for
issuing the certificate. 10.

Section 81C of the principal Act is amended by the insertion
of the following new subsection immediately after subsection (1):
(1A) Subject to subsection (3), a person or partnership shall
pay advance income tax, at the rate specified in the Charging
Schedule, where that person or partnership, without a tax
clearance certificate, is—
(a) exporting goods for commercial purposes at the port
of entry; or
(b) remitting a transaction above two thousand United
States dollars or kwacha equivalent through a
commercial bank. 11. Section 82A of the principal Act is amended by the deletion
of subsection (1E) and the substitution therefor of the following:
(1E) The Commissioner-General may exempt a person or
partnership from the provisions of subsection (1) (a), (b),
(c), or (d) and shall, in writing, notify the person or
partnership of the exemption for the period specified in the
notice, except that subsection (1) (b), shall only apply to
interest arising from a property linked unit of a property
loan stock company, and royalties. 12.

except that subsection (1) (b), shall only apply to
interest arising from a property linked unit of a property
loan stock company, and royalties. 12.

Section 84 of the principal Act is amended by the—
(a) insertion of the following new subsections immediately
after subsection (5):
Amendment
of section
81C
Amendment
of section
82A
Amendment
of section 84

insertion of the following new subsections immediately
after subsection (5):
Amendment
of section
81C
Amendment
of section
82A
Amendment
of section 84

Amendment
of Second
Schedule
(6) A person or partnership declared to be an agent
under subsection (1) shall, where that person or
partnership withholds tax, remit the tax not later
than two days before the due date specified for
the respective category of tax under this Act. (7) A person or partnership declared to be an agent
who does not remit the tax in the period specified
under subsection (7) shall be liable to pay a
penalty of one percent of the amount, in respect
of each month or part of the month for which
the contravention continues during which that
amount or any part is due.; and
(b) renumbering of subsection (6) as subsection (8). 13. Paragraph 5(1) of the Second Schedule to the principal
Act is amended by the deletion of item (l) and the substitution therefor
of the following:
(l) approved collective investment scheme and private fund
to the extent to which the income is distributed to participants
in the collective investment scheme and private fund,
respectively;. 14.

private fund
to the extent to which the income is distributed to participants
in the collective investment scheme and private fund,
respectively;. 14.

The Ninth Schedule to the principal Act is amended by—
(a) the deletion of Part I and the substitution therefor of the
following:
PART I
TAX ON MOTOR VEHICLES FOR THE CARRIAGE OF PERSONS
Type of vehicle (sitting capacity) Amount of tax per vehicle (per annum)
64 seater and above K15,552.00
50 - 63 seater K12,960.00
36 - 49 seater K10,368.00
22 - 35 seater K 7,776.00
18 - 21 seater K 5,184.00
12 - 17 seater K 2,592.00
Below 12 seater (including taxis) K 1,296.00
(b) the deletion of Part II and the substitution therefor of the following:
Amendment
of Ninth
Schedule
366 No. 22 of 2024 Income Tax (Amendment)

6.00
(b) the deletion of Part II and the substitution therefor of the following:
Amendment
of Ninth
Schedule
366 No. 22 of 2024 Income Tax (Amendment)

PART II
TAX ON TURNOVER
Turnover per annaum Tax Rate
K12, 000 or less 0 percent
Above K12, 000 up to K5, 000 000 5 percent; and
(c) the deletion of Part III and the substitution therefor of the following:
PART III
TAX ON BETTING AND GAMING
Type of Game Monthly Tax Rate or Monthly
Tax Amount
1. Online Casino Live Games 20 percent of gross takings
2. Online Casino Machine Games 35 percent of gross takings
3. Casino Games (Brick and Mortar) K5,000 per table
4. Online Lottery Winnings 35 percent of net proceeds
5. Lottery Winnings (Brick and Mortar) 15 percent of net proceeds
6. Online Betting 25 percent of gross takings
7. Betting 15 percent of gross takings
8. Gaming Machines K500 per machine
NOTES:
1. “Net proceeds” means the gross proceeds less sums paid out
for the prizes. 2. “Gross takings” means the total amount staked by players less
the winnings payable and redemptions. 15.

proceeds less sums paid out
for the prizes. 2. “Gross takings” means the total amount staked by players less
the winnings payable and redemptions. 15.

The Charging Schedule to the principal Act is amended—
(a) in paragraph 5, by the deletion of item—
(i) (c) and the substitution therefor of the following:
(c) the maximum rate of tax on income the
Commissioner-General determines as
originating from the export of non-
traditional products is twenty percent,
except that where the Commissioner-
General determines income as
originating from the export of non-
traditional products from farming or
agro-processing, the maximum rate of
tax on that income is ten percent;
Amendment
of Charging
Schedule
Income Tax (Amendment) [No. 365 of 2024 367

or
agro-processing, the maximum rate of
tax on that income is ten percent;
Amendment
of Charging
Schedule
Income Tax (Amendment) [No. 365 of 2024 367

Act No.

Act No.

18
of 2023
(ii) (e) and the substitution therefor of the following:
(e) the maximum rate of tax for the turnover
received by a person or partnership from
the letting of property shall be—
(i) zero percent per annum on turnover
as does not exceed twelve
thousand kwacha;
(ii) four percent per annum on turnover
between twelve thousand and
eight hundred thousand kwacha;
(iii) sixteen percent per annum on
turnover as exceeds eight hundred
thousand kwacha;;
(iii) (f) and the substitution therefor of the following:
(f) the maximum rate of tax on income
received by a company, from the
manufacture of products made out of
copper cathodes, is twenty percent per
annum; and
(iv) (l) and the substitution therefor of the following:
(l) the maximum rate of tax charged on the
income received by a special purpose
vehicle undertaking a public-private
partnership project under the Public-
Private Partnership Act, 2023 shall be
fifteen percent from the first year that
a public-private partnership project
makes profit for a period of five years;;
(b) in paragraph 6, by the deletion of subparagraph (2) and
the substitution therefor of the following:
(2) The tax required to be paid under section 81C
shall be at the rate of fifteen percent of the
value for any—
(a) import or export for duty purposes of the
goods; and
(b) remittance.; and
(c) in paragraph 7, by the deletion of item
(viii) and the substitution therefor of the
following:
(viii) tax required to be deducted from the payment
of winnings from gaming, lotteries and betting
shall be at the rate of fifteen percent;.

ollowing:
(viii) tax required to be deducted from the payment
of winnings from gaming, lotteries and betting
shall be at the rate of fifteen percent;.

368 No. 22 of 2024 Income Tax (Amendment)