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Turnover Tax Calculator
Calculate monthly Turnover Tax for small businesses in Zambia.
Enter your turnover
Enter your monthly gross sales to calculate Turnover Tax.
Turnover Tax in Zambia
Who is Excluded from Turnover Tax
| Category | Status |
|---|---|
| Businesses with annual turnover above K5,000,000 | Excluded |
| Consulting and professional service firms | Excluded |
| Mining operations (Mines and Minerals Development Act) | Excluded |
| Voluntarily VAT-registered businesses | Excluded |
| Partnerships (irrespective of turnover) | Excluded |
| Public service vehicle operators (carriage of persons) | Excluded |
| Earnings subject to final withholding tax (dividends, bank interest, etc.) | Excluded |
Turnover Tax at a Glance (from 1 Jan 2025)
Frequently Asked Questions
What is Turnover Tax in Zambia?
Turnover Tax (TOT) is a simplified tax charged on gross sales for small businesses in Zambia. It applies to businesses with annual turnover of K5,000,000 or less, as an alternative to the standard income tax system.
What is the Turnover Tax rate?
The Turnover Tax rate is 5% of gross sales/turnover. This was increased from 4% effective 1 January 2025. The tax is calculated on total sales - cash and credit - for each month.
Who is excluded from Turnover Tax?
Businesses excluded from Turnover Tax include: those with turnover above K5,000,000/year, consulting and professional service firms, mining operations, voluntarily VAT-registered businesses, partnerships, and public service vehicle operators.
When are Turnover Tax returns due?
Turnover Tax returns must be submitted and paid by the 14th of the month following the month in which the sales were made. For example, sales made in January are due by 14th February.
Are gig economy workers subject to Turnover Tax?
Yes. From 1 January 2025, gig economy operators are included in the Turnover Tax system, provided their annual turnover is K5,000,000 or less and they are not excluded for other reasons (e.g. consulting).
Is there a minimum turnover below which I do not pay?
Yes. Businesses with annual turnover of K12,000 or less are exempt - the rate is 0%. This floor excludes very small, subsistence-level activities from the tax.
Can I deduct expenses under Turnover Tax?
No. Turnover Tax is charged on gross sales before any expenses. You cannot deduct costs like rent, wages, stock, or utilities. This is the main trade-off - the rate is lower (5% vs 35% income tax), but there are no deductions.
How is Turnover Tax calculated? Show me an example.
Example: A retailer makes K6,000 in total sales for the month. Turnover Tax = K6,000 x 5% = K300. Net sales after tax = K5,700. This must be paid by the 14th of the following month.
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Learn
All postsHow to Calculate Turnover Tax in Zambia (2026)
Step-by-step guide to calculating turnover tax in Zambia - the 5% simplified tax for businesses with annual turnover of K5 million or less.
Withholding Tax - Final Tax vs Credited Against Income Tax in Zambia
Not all Withholding Tax in Zambia is final. Learn which categories are final tax and which are credited against your annual income tax liability.
Zambia Double Tax Treaties - How They Reduce Withholding Tax
Zambia has 23 Double Taxation Agreements that can significantly reduce Withholding Tax on cross-border payments. See treaty rates for dividends, interest, and royalties.
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Sources
Zamcalc results are estimates only. Figures are based on rates published by official sources. Verify with the relevant authority or a licensed professional before taking any action. Zamcalc is not liable for decisions based on these figures.