Tax Information – Zambia Revenue Authority (2024)

What is Mineral Royalty?

Mineral Royalty is a payment received as consideration for the extraction of minerals.

Who is liable to register and pay Mineral Royalty?

a) All taxpayers with mining rights from the ministry of Mines and Mineral Development;

b) Any person without a mining right but in possession of minerals on which mineral royalty has not been paid by the supplier of the minerals;

c) All persons carrying out quarrying of industrial minerals are liable to mineral royalty; this includes the quarrying of gravel, clay and sand; and

d) All persons that mine minerals for use as inputs or raw materials in their manufacturing process are also liable to mineral royalty;

How are minerals classified for tax purposes?

Minerals are classified in five categories as follows:

a)Base metals – are non – precious metals that are either common and/or more chemically active, including iron, copper, nickel, aluminium, lead, zinc, tin, magnesium, cobalt, manganese, titanium, scandium, vanadium and chromium

b)Energy Minerals – are naturally occurring substance in the earth’s crust used as a source of energy and includes coal, uranium and any other minerals used to generate energy but does not include petroleum

c)Gemstones– these are non-metallic substances used in jewellery and they include amethyst, aquamarine, beryl, corundum, diamond, emerald, garnet, ruby, sapphire, topaz, tourmaline and any other non – metallic substance, being a substance used in the manufacture of jewellery that the Minister by statutory instrument declares to be a gemstone.

d)Industrial Minerals– these are rocks or minerals other than gemstones, base metals, energy minerals or precious metals used in their natural state or after physical or chemical transformation and includes but is not limited to barites, dolomite, feldspar, fluorspar, graphite, gypsum, ironstone, when used as a fluxing agent kyanite, limestone, phyllite, magnesite, mica, nitrate, phosphate, pyrophyllite, salt, sands, clay, talc, laterite, gravel and any other mineral classified as an industrial mineral by statutory order

e)Precious Metals– these are high value metals and include gold, platinum, silver, palladium and selenium.

How does one compute Mineral Royalty?

Calculation of Mineral Royalty is based on the two methods below:

a) Gross Value

Gross value is applicable to the following:

    • Industrial Minerals;
    • Energy Minerals; and
    • Gemstones.

Under this method of calculation, Mineral Royalty is calculated based on the Gross Value of the minerals produced. For purposes of computing Mineral Royalty, gross value is defined as the realizable price for sale Free on Board at the point of export in Zambia or point of delivery within Zambia.

b) Norm Value

Norm Value is used to calculate Mineral Royalty of:

    • Base metals; and
    • Precious metals.

Mineral Royalty is calculated based on the:-

    • The monthly average London Metal Exchange cash price per metric ton multiplied by the quantity of the metal or recoverable metal sold;
    • The monthly average Metal bulletin cash price per metric ton multiplied by the quantity of the metal or recoverable metal sold to the extent that the metal price is not quoted on the London Metal Exchange; and
    • The monthly average of any other exchange market approved by the Commissioner General Cash price per metric ton multiplied by the quantity of the metal or recoverable metal sold to the extent that the metal price is not quoted on the London Metal Exchange or Metal Bulletin.

Note: The Kwacha / US dollar exchange rate used to convert the US dollar norm value into Kwacha norm value is the monthly Bank of Zambia Mid-rate.

For Purposes of calculating the norm value, the metal price and monthly Bank of Zambia mid-rate can be obtained from the Large and Specialised Taxpayer office or the nearest Direct Taxes Office.

Mineral Royalty Rates

The mineral royalty rates effective 1stJanuary 2019 are as follows:

DescriptionMineral Royalty Rate
Base Metals (Other than Copper)5% on norm value
Energy and Industrial Minerals5% on gross value
Gemstones6% on gross value
Precious Metals6 % on norm value

The following is the five tier regime for copper based on norm value:

Norm Price RangeMineral Royalty Rate
Less than US$4,5005.5%
US$4,500 but less than US$6,0006.5%
US$6,000 but less than US$7,5007.5%
US$7,500 but less than US$9,0008.5%
US$9,000 and above10%

Mineral Royalty Returns

Every holder of large-scale mining license, small-scale mining license, gemstone license, or artisan mining right is required to submit a monthly mineral royalty return within fourteen days after the end of the month in which the sale of the minerals is done.

Where the mining license holder has not produced any minerals they are still required to submit a nil return, failure to which estimated assessments will be issued

Failure to submit or late submission of the monthly mineral royalty return attracts penalties as follows:

(a) In the case of an individual – one thousand penalty units (or K300.00) per month or part thereof;

(b) In the case of a company – two thousand penalty units (or K600.00) per month or part thereof.

When is Mineral Royalty due?

Mineral Royalty is due and payable within fourteen days after the end of the month in which the sale of minerals is done.

Are there any penalties charged on late returns and payments?

Yes, late return submission and late payments will attract penalties and interest.

Deductibility of Mineral Royalty

Mineral Royalty payable or paid is deductible when computing company income tax when arriving at the gains and profits of a person carrying on mining operations.

Tax Information – Zambia Revenue Authority (2024)


How do I get a tax ID number in Zambia? ›

Obtain a tax ID number
  1. Investors have to register with the Zambia Revenue Authority.
  2. In order to get a tax identification number, it is mandatory to file the Certificate of Incorporation.

How do I retrieve my TPIN online? ›

For users opting for online registration, the steps are straightforward:
  1. Visit the official ZRA website: ZRA Website.
  2. Navigate to the Taxpayer Search tab.
  3. Access the dedicated Taxpayer Search page: Taxpayer Search.
  4. Enter your National Registration Card (NRC) number.
  5. Retrieve your TPIN information.
Jan 8, 2024

What is the tax authority in Zambia? ›

Taxation in Zambia

The Zambia Revenue Authority a body under the Ministry of finance is in charge of collecting taxes on behalf of the Zambian Government. Income in Zambia is taxed on the source principle or deemed source basis in some instances.

How do you check for your TIN number? ›

How to Check the URA TIN?
  1. Open the AskURA App on your phone.
  2. Enter in your Email or Phone number (the one you used to register for your TIN)
  3. Tap on select taxpayer type, choose either Individual or Non Individual.
  4. Tap Submit.
  5. The URA App will display your TIN registered details.

How do I get a tax ID number letter? ›

To get a copy of your verification letter, you can call them toll-free at 1-800-829-4933. This is the “business and specialty tax line.”

How do I download my TPIN certificate in Zambia? ›

Can I download my ZRA TPIN certificate? The new addition allows taxpayers to register and self print the TPIN certificates directly from the website www.

What is a 4 digit TPIN number? ›

Telephone Personal Identification Number (TPIN) is an electronic signature; it is a customer's selected 4-digit code (any random numbers) through which the system verifies the authenticity of the customer and allows access to avail Contact Center Services.

What is a TPIN in Zambia? ›

A TPIN, or Taxpayer Identification Number, is a unique number for everyone involved in tax-related activities in Zambia. It's crucial for tax compliance and even for basic banking.

How much is income tax in Zambia? ›

Personal income tax rates
Annual taxable income (ZMW)Rate of income tax (%)
Up to 61,2000
61201 to 85,20020
85,201 to 110,40030
Over 110,40037

How do I register for income tax in Zambia? ›

Taxpayers who have challenges with online registration can still register manually by completing a Zambia Revenue Authority (ZRA) prescribed registration form. The manual form can be obtained from any of the front offices at ZRA offices or it can be downloaded from the ZRA web- site

How much is withholding tax in Zambia? ›

The WHT rate is 20% and is the final tax. Commissions for Withholding Tax purposes means, any Commission other than Commission received by an individual whose income is from employment or office. The WHT rate for residents is 15% and 20% non- residents (final tax). TAX INFORMATION a) Submission of returns & Payments.

What does the Zambia Revenue Authority do? ›

ZRA's responsibilities include assessment and collection of taxes and duties, enforcement of relevant statutory provisions, facilitation of international trade, and advisory on aspects of tax policy.

How do I pay my road tax online in UP? ›

You can pay online road tax in UP through the Parivahan portal. Parivahan is the official website and registry of motor vehicles launched by the Ministry of Road Transport and Highways. It handles various vehicle-related services like online tax payment and e-challan payment.

What is a tax ID number in Zambia? ›

TPIN is a unique ten-digit computer-generated number allocated to a taxpayer upon registration with the Zambia Revenue Authority (ZRA). It is a prerequisite for any transaction with ZRA concerning taxes be it Domestic Taxes or Customs Services. All bank account holders are also required to obtain a TPIN.

How to get a TPIN number in Zambia? ›

Individual applicants for TPIN registration are required to select the option “FAST TRACK TPIN REGISTRATION” from the ZRA web portal ( ) for a simpler and quick process. Registration for TPIN does not require one to pay taxes to Zambia Revenue Authority (ZRA).

How much does it cost to register a small company in Zambia? ›

The minimum nominal capital amount for a business to start operating is ZMK 15,000. Certificate of Incorporation costs ZMK 150. Certificate of a share capital costs ZMK 175. Declaration of consent costs ZMK 150.

Can a foreigner own a company in Zambia? ›

The most common way for foreign investors and entrepreneurs to do business in Zambia is through setting up a Zambian limited liability company (LLC). Alternatively, foreign entrepreneurs willing to raise capital in the country may choose to setup a Zambia Public Limited Company (PLC).


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