Zambia’s 2025 tax update introduces a 1% turnover tax and raises government bond withholding tax to 20%.
Zambia passed the Income Tax (Amendment) Act 2025 on 8 August 2025, with its publication in the Official Gazette following on 19 August 2025.
The legislation introduces two key tax provisions.
The first provision establishes a minimum alternative tax at a rate of 1% per year on the total turnover of companies or partnerships. This tax can be credited against the standard income tax for the year and carried forward for up to five years. However, the minimum alternative tax does not apply to entities subject to presumptive tax or turnover tax.
The second provision raises the withholding tax on interest from Treasury Bills and Government bonds from 15% to 20%.
Earlier, Zambia’s National Assembly advanced the Income Tax (Amendment) Bill 2025 and the Customs and Excise (Amendment) Bill 2025, which seek to introduce new tax measures under the 2025 Supplementary Budget to boost government revenue.
