Skills Development Levy was introduced in Zambia on 1st January 2017. It is imposed on all employers with the following exemptions:
- Government and local authorities
- Approved Public Benefit Organizations
- Foreign missions and other organizations that enjoy diplomatic status in Zambia
- Organizations or persons that are exempt by the Minister of Finance by statutory order.
- Businesses with an annual turnover that is less that K800,000.
The tax is charged at the rate of 0.5% of employees’ gross, monthly, emoluments. Payment of the tax is due on the 10th day of the month following the accounting period. The accounting period is a calendar month.
Skills development levy has no separate return. It is declared on the Pay As You Earn Return.