Presumptive 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.

presumptive Tax is one of the three presumptive taxes that are administered in Zambia. It is tailored for small scale passenger transport operators.  Incorporated operators and those operating luxury coaches are excluded from this tax as they are assumed to have capacity to afford normal income tax requirements. The tax is levied per motor vehicle and the amount payable depends on its seating capacity categories.

The amounts payable for the various categories are the following:

Seating Capacity Annual Presumptive Tax Monthly Presumptive Tax
1 64 and above 7,200 600
2 50 – 63 6,000 500
3 36 – 49 4,800 400
4 22 – 35 3,600 300
5 18 – 21 2,400 200
6 12 – 17 1,200 100
7 Below 12 600 50

 

There are two methods that that are used to collect this tax, an operator can opt to either register for the tax and make payments directly to ZRA or buy tickets that are issued by ZRA from a registered Presumptive Tax agent. Payments is enforced by requiring production of a Presumptive Tax Clearance Certificate at the time of renewing operators’ licenses at the Road Transport and Safely Agency. A Presumptive Tax Clearance Certificate is only issue by ZRA when the operator, has either shown proof of being up to date with buying tickets or, for those that opt to register and make direct payments, when their Presumptive Tax account is up-to-date.