INTIEAZambia · Tax Incentives and Exemptions in ZambiaPolicyIn force

Tax Incentives and Exemptions in Zambia

The Zambia Revenue Authority promotes various fiscal incentives in the mining sector. One of those is that dividends paid by a mining company with a mining licence and carrying on mining operations is 0% taxed. Another is 25% of mining deductions on capital expenditure on…

Last changed 9 months ago.

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Country / jurisdiction: Zambia · Year: 2024 · Status: In force · Level: National · Type: Voluntary

The Zambia Revenue Authority promotes various fiscal incentives in the mining sector. One of those is that dividends paid by a mining company with a mining licence and carrying on mining operations is 0% taxed. Another is 25% of mining deductions on capital expenditure on buildings, railway lines, equipment, or similar works, as well as zero rating of capital on certain equipment and machinery when supplied to a large-scale mining licence.

In contrast, in 2025 the tax rate for manufacturers of products made from copper cathodes increased from 15% to 20%. Also, another tax on minerals is the Mineral Royalty. It is a payment owed for the extraction of minerals in the Republic of Zambia which depends on the mineral and price of the mineral. Cobalt and Vanadium have the highest percentage of minerals due as Mineral Royalty Rate at 8%, compared to 5% being the lowest for base metals and energy and industrial minerals.

Official source: https://www.zra.org.zm/wp-content/uploads/2023/08/Mineral-Royalty-Tax.pdf

Source

https://www.iea.org/policies/28959

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