On 27 December 2019, Zambian Parliament has enacted the Tax Amendment Act 2020 regarding the decree of the National Budget 2020. Income tax amendment is included in Act No. 15 of 2019 which is effective from 1 January 2020. The amendments regarding income tax are as follows:
- Section 78(1) of the ITA was amended to implement charging penalties and interest on overdue payments relating to withholding tax under Sections 81, 81A, 82 which were previously excluded from the Penalty and Interest regime.
- Interest payments to local banks and financial Institutions will be exempt from withholding tax under Section 82A (1) (b) of ITA
- Tax required to be deducted from the payment of interest, except interest on Treasury Bills and Government bonds to a non-resident shall be at the rate of 20%.
