The Income Tax (Amendment) Act,2025

An Act to amend the Income Tax Act.
[19th August, 2025
ENACTED by the Parliament of Zambia.
1. This Act may be cited as the Income Tax (Amendment)
Act, 2025, and shall be read as one with the Income Tax Act, in this
Act referred to as the principal Act.
2. Section 2 of the principal Act is amended by the insertion of
the following new definition in the appropriate place:
“minimum alternative tax” means the tax payable by a person
or partnership under section 14A;.
3. The principal Act is amended by the insertion of the following
new section immediately after section 14:
14A. (1) Despite the other provisions of this Act, a person
or partnership shall, in addition to the maximum rate of tax on
income received by a person or partnership, be liable to pay
minimum alternative tax to be calculated on the total turnover
of the person or partnership.
[No. 10 of 2025 167Income Tax (Amendment)
Enactment
Short title
Cap. 323
Amendment
of section 2
Insertion of
section 14A
Minimum
alternative
tax
GOVERNMENT OF ZAMBIA
ACT
No. 10 of 2025
Date of Assent: 8th August, 2025
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K 4.00 each.

te of Assent: 8th August, 2025
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K 4.00 each.

(2)The minimum alternative tax referred to under
subsection (1) shall be charged at a rate specified in the
Charging Schedule. (3) Subject to the other provisions of this Act, the amount
of tax which would be charged in respect of income received
by a person or partnership in a charge year shall be reduced
by the amount of the minimum alternative tax paid, as a credit. (4) The credit referred to in subsection (3) shall not be
carried forward beyond five subsequent charge years after
the charge year in which the credit is accrued. (5) This section shall not apply to a person or partnership
that is liable to pay presumptive tax or turnover tax under this
Act. (6) The Minister shall make regulations for the
administration, assessment, collection and recovery of
minimum alternative tax under this section. 4.

(6) The Minister shall make regulations for the
administration, assessment, collection and recovery of
minimum alternative tax under this section. 4.

The Charging Schedule to the principal Act is amended—
(a) in paragraph 7, by the—
(i) deletion of item (ix) and the substitution therefor
of the following:
(ix) tax required to be deducted from the
payment of interest to a non resident, shall
be at the rate of twenty percent.;
(ii) insertion of the following new item immediately
after item (x):
(xi) tax required to be deducted from the
payment of interest on Treasury Bills and
Government bonds shall be at the rate of
twenty percent;; and
(iii) re-numbering of items (xi) and (xii) as items (xii)
and (xiii), respectively;
(b) by the insertion of the following new paragraph
immediately after paragraph 7:
8. The maximum rate of tax chargeable under
section 14A shall be one percent per annum.; and
(c) by the re-numbering of paragraph 8 as paragraph 9. 168 No. 10 of 2025] Income Tax (Amendment)
Amendment
of Charging
Schedule
Rate of tax
chargeable
for minimum
alternative
tax