Zambia offers several fiscal and tax incentives to foreign investors who register with the Zambia Development Agency (ZDA). The primary incentives include a zero percent import duty rate on capital equipment and machinery for five years, and accelerated depreciation allowances on capital equipment and machinery [Investment, Trade and Business Development Act, S.30].
Investors who establish operations in a Multi-Facility Economic Zone (MFEZ) or Industrial Park qualify for additional tax benefits. These include zero percent tax on dividends declared on profits made from exports, beginning from the first year of commencement of works [Investment, Trade and Business Development Act, S.16]. Exporters of products and services also benefit from specific incentive schemes [Investment, Trade and Business Development Act, S.13].
To access these incentives, an investor must first obtain proper registration, licensing, permits or certificates as required by law [Investment, Trade and Business Development Act, S.32]. The ZDA processes investor applications, which are then approved by the minister and forwarded to the Zambia Revenue Authority (ZRA) for system configuration. Only after receiving formal approval confirmation from the ZDA can an investor commence importation of approved items [Investment, Trade and Business Development Act, S.33]. Be aware that incentives may be withdrawn if conditions of eligibility are no longer met [Investment, Trade and Business Development Act, S.34].