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Investment & Legal Framework
CUSTOMSDUTYINCENTIVES
NON - FISCAL INCENTIVES
FACILITATION SERVICES
Most capital equipment attracts duty rates of 0 to 5 %.
Further, relief is granted under the Duty Draw Back
scheme. To qualify for the scheme, the following
conditions must be met:
•The company or individual must be in
the manufacturing business
•The company or individual must be an
exporter or intends to start exporting
tion for businesses that have already commenced
trading.
3.Input tax claim for two years prior to commence-
ment of production.
Mining
1.Input tax claim for five years on pre-production
expenditure for exploration companies in the mining
sector;
2.0% tax rate on mining products for export.
Tourism
1.0% tax rate - accommodation in Livingstone district
for a specified time.
2.0% tax rate - tour packages;
3.0% tax rate-other tourist services;
4.Refund to non-resident tourists and visitors;
5.No import VAT on all goods temporarily imported
into the country by foreign tourists.
Immense potential exists within the Agricultural Sector
with vast amounts of natural resources
•The company must be in any sector
other than the mining sector.
2.Input tax claim for three months prior to registra
Other than the generous tax incentives, the ZDA Act
also provides non–fiscal incentives. Investors, who
invest at least US $ 250,000, are entitled to a self-
employment permit and employment permits for up
to five (5) expatriates.
Besides providing the fiscal and non-fiscal incentives
the ZDA provides facilitation services to its clients. In
this regard, the ZDA facilitates the process in which
registered investors:
•Acquire land;
•Obtain water, electric power, transport, and com-
munication services and facilities required for their
investments;
•Regularize their immigration status;
•Acquire other licences required to operate a busi-
ness in any particular sector; and
•Access any other after care assistance that may be
required.
In addition to the tax incentives and services that the
ZDA provides to investors, there are other benefits
that investors enjoy when they invest in Zambia.
Investors who invest in Zambia enjoy the following
guarantees:
•Free repatriation of profits & dividends
•Business cannot be compulsorily acquired by gov-
ernment, except by act of parliament in extreme cir-
cumstances
•Protection against non-commercial risks, as Zambia
is a signatory of multilateral investment guarantee
agency (MIGA and Africa trade Insurance Agency.
•Impartial forum for resolving disputes
•Special bilateral Investor Protection Agreements
exist while new ones can be entered into.
In order to qualify for ZDA incentives the ZDA act
provides that investors need to invest in a priority
sector. The priority sectors are outlined below: