Zambia’s Ministry of Finance and National Planning have introduced new tax measures in the draft 2025 Budget.
The proposed tax changes include limiting the offset of carried-forward losses to 50% of taxable income across all sectors, a reduction from the previous 100%, aligning with the current rule for the mining sector.
The turnover tax regime threshold will increase from ZMW 800,000 to ZMW 5 million, accompanied by a rise in the turnover tax rate from 4% to 5%, while the VAT registration threshold remains at ZMW 800,000.
Additionally, the turnover tax rate on rental income exceeding ZMW 800,000 will rise from 12.5% to 16%, the property transfer tax rate will increase from 5% to 8%, and the levy on mobile money transfers between individuals will double, with progressive rates moving from ZMW 0.08–1.80 to ZMW 0.16–3.60.
Earlier, Zambia’s Ministry of Finance and National Planning Minister Situmbeko Musokotwan presented the 2025 Budget Speech to the National Assembly on 27 September 2024.
The proposed changes will come into effect after the Bills are approved by parliament and signed into law by the President.
