Zambia Investment Center is headquartered in Lusaka, the capital, and is responsible for handling investment certificates of foreign companies in Zambia. When applying for a capital contribution certificate, the applicant shall prepare the following materials: the business plan or feasibility study report of the company to be established; Copy of certificate of investment company; Shareholders' registration form and its background information; A certificate of investor's economic ability issued by a bank or other financial institution. To apply for an investment certificate, you need to pay a handling fee of US$ 250 to Zambia Investment Center, a license fee of US$ 65,438 +0.5 million, and a value-added tax of 1.7%. To register a company in Zambia, you need to prepare the following information: the company's leading organization and its list, a copy of the company's articles of association, and the name and address of the local representative.
Zambia implements preferential policies to encourage foreign investment, and machinery, equipment and spare parts needed for new construction or expansion of enterprises are exempt from customs duties and sales tax; From the date of the establishment of the enterprise, dividends and rental fees are tax-free within 7 years, all income tax is exempted in the first 3 years, and the tax is reduced by 75% in the next 2 years; Migrant workers are exempt from employment tax within 7 years; Enterprises can retain foreign exchange income for various investments or resell it to others at the agreed exchange rate. According to the new investment law, the proportion of self-retained foreign exchange is 65,438+000% in the first three years, 60% in the second two years, and 50% in the validity period of the investment license thereafter. The investment law stipulates that investors' property ownership must be respected and any form of investment may not be confiscated. If it is necessary to confiscate special property, the parliament must pass relevant laws and regulations.
The Ministry of Finance and National Planning of Zambia is responsible for formulating the national tax policy, and the implementing agency is ZRA Zambia Taxation Bureau. The legislative framework related to tax regulations and tax laws is embodied in the income tax law 1966 and its amendments. The income tax law stipulates that anyone who has taxable income (including every legal person, enterprise and individual) shall notify ZRA in writing within 30 days from the date of first obtaining income.
The tax year (tax year) is from April L of the current year to March 3 1 day of the following year. Taxpayers should generally take March 3 1 as the financial date. If taxpayers want to adopt different financial dates, they must obtain the approval of Z R A in advance. Any change in the financial date must also be approved by ZRA in advance. ZRA requires that the annual tax report, including accounts and supporting statements, must be submitted on or before September 30th of each calendar year for the tax year ending on March 3rd1day. Submitting tax reports later than the specified date will be punished.
The main taxes stipulated by the Zambian government include: direct taxes (mainly corporate taxes, payroll taxes and other personal taxes), customs duties and goods taxes, value-added tax (VAT), property transfer tax and mineral resources tax (Mining and Mineral Development Law of 2008). Taxes related to mining enterprises mainly include royalties, enterprise income tax, customs duties, value-added tax and government share participation (Zhao Chen, 20 1 1).
1. Corporate tax
Zambia Taxation Bureau levies 35% corporate tax. However, the income from agricultural fields and non-traditional export products (all export products except copper and cobalt) shall be subject to enterprise tax at the rate of 15%; Companies listed on the Lusaka Stock Exchange will be subject to 33% corporate tax.
2. Personal income tax
The personal income tax rate is 25% ~ 35%.
The wages of foreign employees working and serving in Zambia are taxable, and the payroll tax should be deducted, regardless of whether these wages are paid outside Zambia or by residents outside Zambia. At the end of each tax year, the employer shall also file an annual payroll tax payment report in accordance with the prescribed ZRA form.
In addition to citizens of COMESA and Commonwealth member countries, people from other countries and regions must hold valid visas to visit Zambia. Foreigners must apply for the corresponding work permit at Zambia Immigration Bureau before they can work in Zambia. Work visas are divided into long-term work permits (valid for 2 years) and temporary work permits (valid for 3 months), which can be extended upon expiration.
3. VAT
From April 1 day, 2008, the VAT rate is 16%. Some specific goods or services enjoy zero tax rate or duty-free treatment, and there are preferential policies for returning value-added tax within a certain period of time. VAT input tax can be refunded within 3 years from the date of issuing tax invoices or other supporting documents. Input VAT incurred before VAT registration must be refunded within 3 months. The value-added tax on copper exports is zero.
4. Double taxation agreements
Zambia has signed double taxation avoidance agreements with Canada, Denmark, Finland, France, Germany, the Netherlands, India, Ireland, Italy, Japan, Kenya, Mauritius, Norway, Romania, South Africa, Sweden, Tanzania, Uganda, Britain, Yugoslavia and Zimbabwe. In principle, double taxation agreements allow a country's tax between two countries to offset the taxable income of another country, thus avoiding double taxation.
5. Royalties and resource taxes
Zambia's Mining and Mineral Development Law of 2008, which came into effect on April 1 2008, stipulates that the mineral resource tax rate is unified at 6% of the total value of metals mined. The new law replaced Article 3 1 2 13 of the original 1995, Mining and Mineral Law (1995), and was abolished. According to the new law, the maximum area of exploration license is 65,438+0,000 square kilometers, and the total area of exploration license of exploration company is not more than 5,000 square kilometers (29,940 cadastral units); The maximum area of large-scale mining license and large-scale gem mining license is 250km2(7 485 cadastral units).
6. Government participation
At present, the Zambian government still insists on holding 15% ~ 20% performance shares in major mining projects, which has a negative impact on the profitability of the projects. However, due to the lack of profit distribution before the investment is recovered, the impact is small.
Generally speaking, Zambia's tax policy is conducive to improving the financial internal rate of return of the project, shortening the payback period of investment, and attracting mining investment in the fierce international competition environment.
In addition, Zambia is rich in electricity and the electricity price is cheap. Electricity is the most important energy source in Zambia and is managed by the state-owned Zambia Power Supply Company (ZESCO). At present, there are three large hydropower stations in Zambia, namely, the northern shore of Lake Kariba, Victoria Falls and Kafue Gorge, with a total installed capacity of 1.608 MW. In addition, there are Kitway thermal power plant and six small hydropower stations. Zambia is rich in power resources, which can meet the needs of its own industry, agricultural production and urban and rural residents, and one third of it is exported to neighboring countries, such as the Democratic Republic of the Congo.