Zambia 2019 Budget Tax Changes Include EBITDA-Based Interest Restriction and Replacement of VAT with Sales Tax

The Zambia Revenue Authority has published an overview of the tax changes included as part of the 2019 Budget, which was delivered to the National Assembly on 28 September 2019. Some of the main tax changes include:

• The introduction of a 30% of EBITDA interest deduction restriction, with an exception for businesses on the turnover tax system and those registered under the Banking and Financial Services Act, and the Insurance Act;
• An increase in the withholding tax rate on dividends, intere…