On 29 October 2021, the Minister of Finance and National Planning, the Honorable Dr. Situmbeko Musokotwane, presented the Budget for 2022 to the National Assembly of Zambia. The budget includes the following changes:
- Proposed to reduce the standard corporate income tax rate (CIT) to 30% from 35% for corporate entities;
- The lower CIT rate of 15% on hotel and lodge income from accommodation and catering services will be extended to 31 December 2022;
- Suspending the 35% corporate income tax for 2022 and 2023 for businesses that manufacture ceramic products;
- Increasing from 5 years to 10 years the time in which a taxpayer may carry forward interest that is disallowed under the earnings before interest taxes depreciation and amortization (EBITDA) interest deduction limitation rules;
- Allowing corporations to deduct mining royalties on income tax returns; and
- Introducing a 20% withholding tax on reinsurance placed with reinsurers not licensed in Zambia.
All these measures will take effect on 1 January 2022, unless specified otherwise.
