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GROW YOUR BUSINESS IN ZAMBIA

Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost

  • Full Payroll Outsourcing
     

  • Hybrid Payroll Outsource
     

  • International Payment Management
     

  • Local Filing
     

  • Social Security Filing
     

  • Interact with Local Authorities
     

  • Human Resources Management System
     

  • Integration with all Accounting and Third Party

    Software

Praxima Services Include

Why Praxima?

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Local Tax Compliance

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Secure Data Transferring

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Responsive Administrators

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Increase Productivity

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Industry Experts

Running Your Payroll

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Focus on Your

Core Business

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Outsource your Zambian payroll to Praxima

Zambia
Tax Highlights

Zambia has a source-based income taxation system under the Income Tax Act. Income deemed to be derived from Zambia is generally subject to Zambian income tax. Zambian residents are also taxed on interest and dividends received from sources outside Zambia. In general, both Zambian and non-Zambian residents pay the same rates. In practice, the only way for non-Zambian residents' income to be taxed at these rates would be on Zambian-source emoluments from employment or office under pay-as-you-earn (PAYE). Non-Zambian residents' other Zambian-sourced income may be subject to withholding tax (WHT).

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TAX RATES  |  2022

 

Tax Rates:              ZMW:

0%:                           0 – 54,000

25%:                        54,000 – 57,600

30%:                        57,600 - 82,800

37.5%:                     82,800 +

 

STATUTORY FILING  |  2022

The final tax return must be submitted by the 21st of June following the end of the fiscal year. This must be accompanied by any outstanding tax balance. Individual taxpayers who earn more than ZMW 54,000 per year in income other than from employment and are subject to PAYE are required to file a provisional tax return and make advance payments on their estimated tax liability during the charge year.

SOCIAL SECURITY  |  2022

Contributions to the National Pension Scheme Authority are required of both employers and employees (NAPSA). Contributions to the National Pension Scheme Authority are required of both employers and employees (NAPSA).

The contribution rate is 5% of the employee's total earnings (a total of 10% contribution from both the employer and the employee), subject to the authority's limit. The maximum monthly contribution limit for 2022 is ZMW 1,221.8 per employee (i.e. a total of ZMW 2,443.60 from both the employer and employee per month).

Tax Residents

Individuals will be treated as Zambian residents unless they are present in Zambia for a temporary purpose only and do not intend to establish residence in Zambia. Any person who is present in Zambia for 183 days or more during a charge year is considered a Zambian resident for that year.

Taxable Income

Zambia has a source-based income taxation system under the Income Tax Act. Income deemed to be derived from Zambia is generally subject to Zambian income tax. Zambian residents are also taxed on interest and dividends received from sources outside Zambia. In general, both Zambian and non-Zambian residents pay the same rates. In practice, the only way for non-Zambian residents' income to be taxed at these rates would be on Zambian-source emoluments from employment or office under pay-as-you-earn (PAYE). Non-Zambian residents' other Zambian-sourced income may be subject to withholding tax (WHT).

Exempt Income

Individuals living in Zambia are generally taxed on interest income earned in both Zambia and elsewhere. Individuals' interest earned on interest earning accounts held at banks and institutions registered under the Banking and Financial Services Act of 2017 will be tax-free beginning January 1, 2022.

 

Your HRMS is Standard 

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Employee Self-service

Payslip and tax certificate retrieval. Updating of personal particulars. Leave request and balance enquiries

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Records

Employee documents folder. Training records. Heath & Safety records. Disiplinary records. Qualifications, resume and hiring records.

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Work Flow

Workflow with different approval levels. Full work flow functionality for leave requests, expense and time-sheets

  PAYMENTS, REPORTING & FILING

  • Direct payment into employee bank accounts. Emailed password protected pay slips.

  • Payment of taxes, benefit providers and other creditors.

  • Filing of returns to the authorities.

  • Generation and filing of statutory reports.

  • General ledger and 100's of customisable reports.

Get World-Class Payroll

Outsource to Praxima

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