October 2, 2018 2018-1943 Zambia issues 2019 National Budget On 28 September 2018, Zambia's Minister of Finance, Hon. Margaret Mwanakatwe presented the 2019 National Budget to Parliament. The Budget was presented against a backdrop of a growing debt burden that has necessitated the introduction of austerity measures. The revenue measures included in the budget are aimed at reducing the country's fiscal deficit as well as maintaining foreign and domestic debt within sustainable levels. Key changes include: - Elimination of the Value Added Tax (VAT) and reintroduction of Sales Tax
- Introduction of a provision to prosecute company directors and managers in their personal capacity for VAT offenses
- Increase in the time period for making assessments in transfer pricing cases to a period of up to 10 years prior and an extension of the requirement to keep records to 10 years
- Increase in the mineral royalty rates and a provision to make mineral royalty tax non-deductible for income tax purposes
- Extension of the requirement for keeping "accounts and records" in English to "other related documentation," including contracts
——————————————— CONTACTS For additional information with respect to this Alert, please contact the following: EY Advisory Services Limited, Lusaka - Patrick Mawire
patrick.mawire@zm.ey.com
Ernst & Young Advisory Services (Pty) Ltd., Africa ITS Leader, Johannesburg - Marius Leivestad
marius.leivestad@za.ey.com
Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London - Rendani Neluvhalani
rendani.mabel.neluvhalani@uk.ey.com - Byron Thomas
bthomas4@uk.ey.com
Ernst & Young LLP, Pan African Tax Desk, New York - Dele A. Olaogun
dele.olaogun@ey.com
——————————————— ATTACHMENT PDF version of Tax Alert 2018-1943 ![](/_IncludeFiles/TinyMCE_4.0.5/plugins/knotianewsattachment/icons/Icon_PDF.gif)
|