The Income Tax (Amendment) Act, 2022.

Income Tax (Amendment) [No. 24 of 2022 531
An Act to amend the Income Tax Act. [27th December, 2022
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Income Tax (Amendment)
Act, 2022, 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, 2023. (3) Despite subsection (2), sections 55A and 55B shall come
into operation on a date appointed by the Minister by statutory
instrument. 2.

uary, 2023. (3) Despite subsection (2), sections 55A and 55B shall come
into operation on a date appointed by the Minister by statutory
instrument. 2.

Section 2 (1) of the principal Act is amended—
(a) by the deletion of the definitions of “child”, “purchase
price”, “royalty” and “taxpayer identification number”
and the substitution therefor of the following definitions
in the appropriate places in alphabetical order:
“child” for tax purposes, includes a child of family or
any child to whom an individual stands in the
place of a parent;
“purchase price” is the amount paid by a person or
partnership to a person or partnership resident
in the Republic in return for future payments of
commodity royalty;
“royalty” means a payment of any kind received as a
consideration for the use of, or the right to use—
Enactment
Short tittle
and
commencement
Cap. 323
Amendment
of section 2
GOVERNMENT OF ZAMBIA
ACT
No. 24 of 2022
Date of Assent: 23rd December, 2022
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka. Price K20.00 each

of Assent: 23rd December, 2022
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka. Price K20.00 each

532 No.

532 No.

24 of 2022] Income Tax (Amendment)
(a) any copyright of literary work;
(b) any artistic or scientific work, including
cinematograph films, films, video tapes,
sound recording or any other like
medium;
(c) any computer programme or software;
(d) any patent, trademark, design or model,
plan, secret formula or process;
(e) any industrial, commercial or scientific
equipment; or
(f) any information concerning industrial,
commercial or scientific experience;
and
“taxpayer identification number” means a number
designated and issued by the Commissioner-
General to—
(a) a corporate person or unincorporate body
of persons; and
(b) an individual who has attained the age of
sixteen years;; and
(b) by the insertion of the following new definitions in the
appropriate places in alphabetical order;
“artisanal mining” has the meaning assigned to the
words in the Mines and Minerals Development
Act, 2015;
“child of family” has the meaning assigned to the
words in the Children’s Code Act, 2022;
“electronic fiscal device” means an electronic device,
approved by the Commissioner-General, which
has a fiscal memory capable of generating and
storing fiscal information and has the capacity
to generate or record data and other reports and
is capable of transmitting that data in real time
to the Authority;
“gig economy” is a segment of the digital economy
which involves individuals carrying out business
through an online platform and under flexible or
temporary conditions, and includes an
independent contractor or freelancer conducting
business through an online platform;
Act No.

d under flexible or
temporary conditions, and includes an
independent contractor or freelancer conducting
business through an online platform;
Act No.

11
of 2015
Act No. 12 of
2022

11
of 2015
Act No. 12 of
2022

Income Tax (Amendment) [No. 24 of 2022 533
“mining licence” has the meaning assigned to the
words in the Mines and Minerals Development
Act, 2015;
“public private partnership project” means a project
that shall be transferred back to the Republic
that involves the—
(a) design, finance, construction, development
or operation of a new infrastructure,
asset or facility;
(b) provision of social sector services; or
(c) rehabilitation, modernisation, expansion,
operation or management of an existing
infrastructure, asset or facility;
“savings group” includes village banking and a co
operative society;
“small scale mining” has the meaning assigned to the
words in the Mines and Minerals Development
Act, 2015;
“special purpose vehicle” means a company
incorporated in the Republic by a successful
bidder for the purpose of undertaking a public
private partnership project in accordance with
the Public Private Partnership Act, 2009;. 3. The principal Act is amended by the insertion of the following
new sections immediately after section 55:
55A. A person or partnership carrying on a business
shall submit to the Commissioner-General all business
transactions in real time as prescribed. 55B.

5A. A person or partnership carrying on a business
shall submit to the Commissioner-General all business
transactions in real time as prescribed. 55B.

(1) A person and partnership carrying on a business
shall use an electronic fiscal device to record sales for
income tax purposes. (2) Despite subsection (1), the Commissioner-General
may approve the use of a document, device or equipment,
other than an electronic fiscal device, for a certain category
of persons or partnerships carrying on business. (3) A person who contravenes this section commits
an offence and is liable, on conviction, in the case of—
Act No. 11
of 2015
Act No. 14
of 2009
Insertion of
section 55A
and 55B
Submission
of business
transactions
in time
Use of
electronic
fiscal device
Act No. 11
of 2015

015
Act No. 14
of 2009
Insertion of
section 55A
and 55B
Submission
of business
transactions
in time
Use of
electronic
fiscal device
Act No. 11
of 2015

534 No. 24 of 2022] Income Tax (Amendment)
(a) a first offence, to a penalty not exceeding
thirty thousand penalty units;
(b) a second offence, to a penalty not
exceeding sixty thousand penalty units;
and
(c) a third offence or subsequent offence, to
a penalty not exceeding ninety thousand
penalty units. 4. Section 64A of the principal Act is amended by the insertion
of the following new subsection immediately after subsection (2):
(2A) Despite subsection (2), the Commissioner-
General may make a standard assessment requiring—
(a) a person conducting business through the gig
economy, with an annual turnover of eight hundred
thousand Kwacha or less, to pay tax on turnover
at the rate set out in Part II of the Ninth Schedule;
and
(b) a holder of a mining licence to carry out artisanal
mining or small scale mining, with an annual
turnover of eight hundred thousand Kwacha or
less, to pay tax on turnover as set out in Part IV of
the Ninth Schedule. 5.

scale mining, with an annual
turnover of eight hundred thousand Kwacha or
less, to pay tax on turnover as set out in Part IV of
the Ninth Schedule. 5.

Section 77 of the principal Act is amended by the insertion
of the following new subsection immediately after subsection (1D):
(1E) The due date for the payment of a provisional
return submitted by a person who registers after 31st March
of any charge year, shall be within ninety days from the
date of registration. 6. Section 82A (1) of the principal Act is amended by the—
(a) deletion of paragraph (j); and
(b) renumbering of paragraph (k) as paragraph (j). 7. Section 100 (1) (e) of the principal Act is amended by the—
(a) insertion of the following new subparagraph immediately
after subparagraph (iii):
(iv) in relation to a person required to pay presumptive
tax under Part III of the Ninth Schedule—
Amendment
of section
64A
Amendment
of section 77
Amendment
of section
82A
Amendment
of section 100

esumptive
tax under Part III of the Ninth Schedule—
Amendment
of section
64A
Amendment
of section 77
Amendment
of section
82A
Amendment
of section 100

Income Tax (Amendment) [No. 24 of 2022 535
(A) half the amount of the undeclared tax,
in the case of negligence;
(B) the full amount of the undeclared tax, in
the case of wilful default; and
(C) one and half times the amount of the
undeclared tax, in the case of fraud;;
and
(b) renumbering of subparagraph (iv) as subparagraph (v). 8. The Second Schedule to the principal Act is amended—
(a) in paragraph 5 (1), by the insertion of the following new
item immediately after item (m):
(n) pension scheme approved under the Pension
Scheme Regulation Act, 1996.; and
(b) in paragraph 6A (1), by the deletion of the word
“withholding”. 9. The principal Act is amended by the repeal of the Fourth
Schedule. 10.

96.; and
(b) in paragraph 6A (1), by the deletion of the word
“withholding”. 9. The principal Act is amended by the repeal of the Fourth
Schedule. 10.

The Fifth Schedule to the principal Act is amended—
(a) in paragraph 1(4)(i), by the deletion of the words
“twenty thousand Kwacha” and the
substitution therefor of the words “one
hundred thousand Kwacha”; and
(b) in paragraph 10, by the insertion of the following
new subparagraph immediately after
subparagraph (7):
(8) Despite the other provisions of this Act, a public
private partnership project approved under the
Public-Private Partnership Act, 2009, may claim
on a straight line basis, wear and tear at an
accelerated rate, not exceeding one hundred
percent in respect of a new implement, plant or
machinery acquired and used by the special
purpose vehicle for the purpose of that public
private partnership project. 11. The Sixth Schedule to the principal Act is amended in
paragraph 1 in the definition of “farm dwelling”, by the deletion of
the words “twenty thousand Kwacha” and the substitution therefor
of the words “one hundred thousand Kwacha”. Amendment
of Second
Schedule
Act No. 28
of 1996
Repeal of
Fourth
Schedule
Amendment
of Fifth
Schedule
Act No. 14
of 2009
Amendment
of Sixth
Schedule

. Amendment
of Second
Schedule
Act No. 28
of 1996
Repeal of
Fourth
Schedule
Amendment
of Fifth
Schedule
Act No. 14
of 2009
Amendment
of Sixth
Schedule

536 No. 24 of 2022] Income Tax (Amendment)
12. The Ninth Schedule to the principal Act is amended—
(a) by the deletion of Part II and Part III and the substitution
therefor of the following:
PART II
TAX ON TURNOVER
Turnover per annum Tax Rate
K12,000 or less 0 percent
Above K12,000 and up to K800,000 4 percent
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 (Brick and Mortar) 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 by the players.
Amendment
of Ninth
Schedule

zes.
2. “Gross takings” means the total amount staked by players less
the winnings payable and redemptions by the players.
Amendment
of Ninth
Schedule

Income Tax (Amendment) [No. 24 of 2022 537
3. The 15 percent tax rate on Betting (Brick and Mortar) and
Lottery Winnings (Brick and Mortar) is only applicable for the 2023
and 2024 charge years; and
(b) by the insertion of the following new part immediately
after Part III:
PART IV
PRESUMPTIVE TAX ON ARTISANAL AND SMALL SCALE MINING
Tax rate Tax base
4 percent gross turnover
less mineral
royalty paid
13.

y
after Part III:
PART IV
PRESUMPTIVE TAX ON ARTISANAL AND SMALL SCALE MINING
Tax rate Tax base
4 percent gross turnover
less mineral
royalty paid
13.

The Charging Schedule to the principal Act is amended—
(a) in paragraph 1 (1) (b), by the deletion of the words “six
thousand Kwacha” and the substitution therefor of the
words “seven thousand two hundred Kwacha”;
(b) in paragraph 2 (1)—
(i) item (c), by the deletion of the words “fifty four
thousand Kwacha” and the substitution therefor
of the words “fifty seven thousand six hundred
Kwacha”;
(ii) by the deletion of items (d) and (e) and the
substitution therefor of the following:
(d) on the balance of so much of an
individual’s income as exceeds fifty
seven thousand six hundred Kwacha but
does not exceed eighty one thousand
six hundred Kwacha, at the rate of
twenty percent per annum;
(e) on the balance of so much of an
individual’s income as exceeds eighty
one thousand six hundred Kwacha but
does not exceed one hundred and six
thousand eight hundred Kwacha, at the
rate of thirty percent per annum; and
(iii) under item (f), by the deletion of the words “eighty
two thousand eight hundred Kwacha” and the
substitution therefor of the words “one hundred
and six thousand eight hundred Kwacha”;
Amendment
of Charging
Schedule

d eight hundred Kwacha” and the
substitution therefor of the words “one hundred
and six thousand eight hundred Kwacha”;
Amendment
of Charging
Schedule

538 No.

538 No.

24 of 2022] Income Tax (Amendment)
(c) in paragraph 3 (1)—
(i) by the deletion of item (c) and the substitution
therefor of the following:
(c) on the income of electronic
communications network or service
licensee, at the rate of thirty five per
centum per annum;
(ii) by the deletion of item (d); and
(iii) the renumbering of item (e) as item (d);
(d) in paragraph 5—
(i) by the deletion of item (e) and the substitution therefor
of the following:
(e) the maximum rate of tax for 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; and
(ii) twelve and a half percent per annum on turnover
as exceeds eight hundred thousand Kwacha;;
(ii) by the insertion of the following new items
immediately after item (i):
(j) the maximum rate of tax charged on the
income earned by an agro processing
business approved by the Zambia
Development Agency and carrying on
manufacturing and processing of corn
starch in a multi facility economic zone
or an industrial park, shall be—
(i) zero percent for the 2023 to 2032 charge years;
(ii) fifty percent of the standard income tax rate for
the 2033 to 2035 charge years; and

hall be—
(i) zero percent for the 2023 to 2032 charge years;
(ii) fifty percent of the standard income tax rate for
the 2033 to 2035 charge years; and

Income Tax (Amendment) [No.

Income Tax (Amendment) [No.

24 of 2022 539
(iii) seventy-five percent of the standard income
tax rate for the 2036 to 2037 charge years;
(k) the maximum rate of tax charged on the income earned
from value addition to gemstones through lapidary and
jewellery facilities is twenty five percent; and
(l) the tax chargeable on the income received by a special
purpose vehicle undertaking a public private partnership
project under the Public Private Partnership Act, 2009
for the first five years that a public private partnership
project makes profit shall be fifteen percent.;
(e) in paragraph 6(1), by the insertion of the following
new item immediately after item (e):
(f)the rate of zero percent per annum for dividends
paid by agro processing business approved by
the Zambia Development Agency and carrying
on manufacturing of corn starch in a multi
facility economic zone or an industrial park for
the 2023 to 2032 charge years.; and
(f) in paragraph 7—
(i) 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 twenty percent, except that the
applicable rate for the 2023 and 2024
charge years shall be fifteen percent;;
(ii) by the deletion of item (x) and the substitution
therefor of the following:
(x) tax required to be deducted from a
payment of interest under section 82A
arising from interest earnings by an
individual with a savings group shall be
deducted at the rate of zero percent
per annum;;
(iii) by the insertion of the following new items
immediately after item (x):
Act No.

group shall be
deducted at the rate of zero percent
per annum;;
(iii) by the insertion of the following new items
immediately after item (x):
Act No.

14
of 2009

540 No. 24 of 2022] Income Tax (Amendment)
(xi) tax required to be deducted from a
payment of interest under section 82A
arising from green bonds listed on a
securities exchange in the Republic
with maturity of at least three years
shall be at the rate of zero percent per
annum; and
(xii) tax required to be deducted from the
payment of interest to individual life
insurance policy holders shall be at the
rate of zero percent.