The Income Tax (Amendment) Bill, 2021

Parliamentary Period: 
First Session of the Thirteenth Assembly

The object of this Bill is to amend the Income Tax Act so as to —

(a) increase the PayAsYou Earn tax free threshold for individuals to fiftyfour

thousand Kwacha per annum;

(b) provide for the deductibility of mineral royalty for corporate income tax

assessment purposes;

(c) reduce the standard corporate income tax rate to thirty percent;

(d) extend the application of a fifteen percent income tax rate on income

earned by persons providing accommodation and food services to

31st December, 2022;

(e) exempt the payment of withholding tax on interest from interest earning

accounts held by individuals with institutions registered under the

Banking and Financial Services Act, 2017;

(f) revise the rental income tax regime;

(g) suspend the application of income tax to persons carrying on the business

of manufacturing ceramic products for the charge years 2022 and


(h) extend the period for which disallowed interest deduction can be carried

forward by persons carrying on a mining operation or electricity


(i) revise the bands for presumptive taxes on taxis and buses;

(j) introduce withholding tax at the rate of twenty percent on reinsurance

placed with reinsurers not licensed in the Republic;

(k) provide clarity on the computation of winnings for income tax purposes;

(l) provide for the registration of a person with disability with the Zambia

Agency for Persons with Disabilities for income tax purposes; and

(m) provide for matters connected with, or incidental to, the forgoing.

Bill Stage: 
First Reading
Second Reading
Committee Stage
Report Stage
Third Reading