Turnover Tax Calculator

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.

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.

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.

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.

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).

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.

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.