The Skills Development Levy

THE SKILLS DEVELOPMENT LEVY ACT, 2016
A RRANGEMENT OF SECTIONS
Section
1. Short title and commencement
2. Interpretation
3. Administration of Act
4. Charge of levy
5. When levy becomes due
6. Exemptions
7. Payment of levy into Fund
8. Recovery of levy, assessment and other matters
9. Administrative rules
10. Regulations
Skills Development Levy [No. 46 of 2016 1033
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka. Price K12.00 each

pment Levy [No. 46 of 2016 1033
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka. Price K12.00 each

An Act to provide for the imposition, payment and collection
of a skills development levy at the rate of 0.5 percent of
gross emoluments; and to provide for matters connected
with, or incidental to, the foregoing. [27th December, 2016
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Skills Development Levy
Act, 2016. (2) This Act shall come into operation on 1st January, 2017. 2. In this Act, unless the context otherwise requires—
“ casual employee ” has the meaning assigned to it in the
Employment Act;
“ Commissioner General ” has the meaning assigned to it in
the Zambia Revenue Authority Act;
“ emolument ” has the meaning assigned to it in the Income
Tax Act;
“ employee ” has the meaning assigned to it in the Employment
Act;
“ employer ” has the meaning assigned to it in the Employment
Act;
“ Fund ” means the Technical Education, Vocational and
Entrepreneurship Training Authority Fund established under
the Technical Education, Vocational and Entrepreneurship
Training Act, 1998;
“ levy ” means the skills development levy charged under
section 4;
Enactment
Short title and
commencement
Interpretation
Cap. 268
Cap. 321
Cap. 323
Cap. 268
Cap. 268
Act No.

s development levy charged under
section 4;
Enactment
Short title and
commencement
Interpretation
Cap. 268
Cap. 321
Cap. 323
Cap. 268
Cap. 268
Act No.

13
of 1998
Skills Development Levy [No. 46 of 2016 1035
GOVERNMENT OF ZAMBIA
ACT
No. 46 of 2016
Date of Assent: 27th December, 2016

13
of 1998
Skills Development Levy [No. 46 of 2016 1035
GOVERNMENT OF ZAMBIA
ACT
No. 46 of 2016
Date of Assent: 27th December, 2016

“ pension benefit ” has the meaning assigned to it in the
Constitution; and
“ public benefit organisation ” has the meaning assigned to it
in the Income Tax Act. 3. The Commissioner-General shall, subject to the direction
of the Minister, give effect to the provisions of this Act and shall,
for that purpose, have all the powers conferred on the
Commissioner-General by the Zambia Revenue Authority Act and
the Income Tax Act. 4. (1) A skills development levy at the rate of 0.5 percent shall
be charged, levied, collected and paid by an employer, on the gross
emoluments payable to an employee, including a casual employee,
during a month. (2) The levy shall be calculated on the gross emoluments payable
by an employer to the employee, referred to in subsection (1). (3) A levy payable by an employee shall not be deducted from
the emoluments of an employee. (4) The amount of emolument referred to in subsection (1)
shall not include an amount paid or payable to an employee by way
of a pension benefit. 5.

. (4) The amount of emolument referred to in subsection (1)
shall not include an amount paid or payable to an employee by way
of a pension benefit. 5.

An employer shall pay the levy to the Commissioner-General
at the time when an employee’s emolument is paid or is payable or
deemed to be paid or payable to the employee and shall be remitted
by the employer to the Commissioner-General not later than the
tenth day of the month following the month in which the levy
becomes due. 6. (1) The levy is not payable by—
(a) an employer in the public service or a local authority;
(b) an employer whose annual turnover is below eight hundred
thousand kwacha; and
(c) a public benefit organisation approved as such under the
Income Tax Act, exclusively established for the purpose
of providing a public benefit or an organisation exempted
from taxation under any other written law. (2) The Minister may, by statutory instrument, exempt any
person from the payment of the levy. 7. The levy collected under this Act shall be paid into the Fund. Cap. 1
Cap. 321
Cap. 323
Administration
of Act
Cap. 323
Charge of
levy
When levy
becomes due
Exemptions
Cap. 323
Payment of
levy into
Fund
Skills Development Levy1036 [No. 46 of 2016

tration
of Act
Cap. 323
Charge of
levy
When levy
becomes due
Exemptions
Cap. 323
Payment of
levy into
Fund
Skills Development Levy1036 [No. 46 of 2016

8. Subject to the provisions of this Act, the provisions of the
Income Tax Act apply to this Act in respect of the following
(a) the recovery of the levy;
(b) the filing of returns;
(c) assessments of the levy payable;
(d) the keeping of records;
(e) the furnishing of information and production of documents;
(f) delegation of authority;
(g) the appointment of authorised officers;
(h) penalties and sanctions;
(i) reviews and appeals; and
(j) the priority of tax debts in bankruptcy.
9. The Commissioner-General may, by notice in the Gazette,
make administrative rules for the proper administration of this Act.
10. The Minister may, by statutory instrument, make regulations
for the proper carrying out of the provisions of this Act.
Recovery of
levy,
assessment
and other
matters
Cap. 323
Administrative
rules
Regulations
Skills Development Levy [No. 46 of 2016 1037

1038