Skills Development Levy

Skills Development Levy was introduced in Zambia on 1st January 2017. It is imposed on all employers with the following exemptions:

  1. Government and local authorities
  2. Approved Public Benefit Organizations
  3. Foreign missions and other organizations that enjoy diplomatic status in Zambia
  4. Organizations or persons that are exempt by the Minister of Finance by statutory order.
  5. 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.