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Income Tax Rates

All about Income Tax Rates in Zambia, Income Tax and Salaries, Income Tax and Wages, Income Tax and Deductions and more on Mywage Zambia.

 

What is Income Tax?

Income tax is a tax paid or levied on personal income. It’s the money that is paid to the government by workers and self-employed individuals who generate an income either through a salary, saving or pension.

Do I need to pay Income Tax on the money I have worked for?

Yes. The law allows the government to tax your personal income because this is how it raises money to fund various activities and provide services to the public.

Are there exemptions from paying Income Tax?

Yes. Every year, the government through the Ministry of Finance determines who is supposed to be exempted from paying tax based on what they earn. Pay As You Earn (PAYE) and income tax rates are determined and included in the budget every year. According to the Zambian tax system, higher income earners pay higher taxes compared to low income earners. The measure is meant to give relief to all workers especially those with a low income.

Is there a minimum age at which a person becomes liable to pay Income Tax?

No. There is no minimum age at which a person becomes liable to pay income tax. A person will be liable to pay income tax depending on what amount of their income is taxable.

What are some examples of income on which tax is paid?

Tax may be paid on earnings from employment, earnings from self-employment, income from pension, income from social security benefits, income from shares, income from rentals, income from a trust or profits from savings.

What is the current exemption threshold for PAYE?

The exempt threshold for PAYE has been increased from K1, 000,000 per month to K2, 000,000 per month.

What are the current Income Tax Rates?

The table below shows the latest personal Income Tax Rates with effect from 1st April, 2012:

 

Income bands per annum

Income bands per month

Tax rate (%)

First K24,000,000

First K2,000, 000

0

Next K9,600,000

Next K800, 000

25

Next K34,800,000

Next K2,900,000

30

Balance over K68,400,000

Balance over K5,700,000

35

 

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