Effective 1st January 2018
|Income Tax Bands (ZMW)||Tax Rates (%)|
|3,300.00 and Below||0%|
|3,300.01 – 4,100.00||25%|
|4,100.01 – 6,200.00||30%|
|6,200.00 and Above||37.5%|
The constitution of Zambia—under the PAYE system—mandates employers to deduct gross payments using the following variables
A key thing to bare in mind is that a proportion of statutory deductions are removed before the tax calculation—the amount deducted is either 15% of total statutory contributions or ZMW 255.00, whichever is the minimum.