Base Tax

Presumptive taxes are designed to relieve low-income businesses from the burden of the cost of maintaining all the records that are mandatory for taxpayers that are registered for Income Tax, preparing financial statements and completing complicated tax returns.

Base tax is one of the three presumptive taxes that are administered in Zambia. The other two are Turnover Tax and Presumptive Tax. Base Tax is designed for small traders that operate, mainly vegetable stands in markets.

Currently market stand operators are only required to pay an amount of K150 per accounting period. The account period is a calendar year and payments are due by 31st June of the year following the accounting period. Two options for payment of base tax are available. A market stand operator can opt to either register for base tax and make payments directly to the Zambia Revenue Authority (ZRA) or Base Tax tickets from a Base Tax Agent who is registered with ZRA.

The ZRA has not put in place means of enforcing this tax. This could be the reason the tax is almost non-existent.