Tax on Emoluments

All about Tax on Emoluments in Zambia, Tax on Emoluments and Salaries, Tax on Emoluments and Wages and Benefits, Tax on Emoluments and Zambian Salaries on Mywage Zambia.

Emoluments not subject to P.A.Y.E 

The following emoluments are exempt or otherwise not chargeable to income tax and, consequently, need not be included in taxable emoluments:

  • Ex-Gratia Payments: A voluntary, non-contractual, non-obligatory payment made by an employer to the spouse, child or dependant of a deceased employee.
  • Medical Expenses: Medical expenses paid or incurred by an employer on behalf of an   employee or refunds of actual medical bills.
  • Funeral Expenses: Funeral expenses paid or incurred by an employer on behalf of an employee are exempted.
  • Sitting Allowances for Councilors: Payments by Local Authorities to Councilors as sitting allowances are exempted.
  • Labour Day Awards: Labour Day awards paid to employees either in cash or in kind are regarded by Zambia Revenue Authority as non-taxable.

Tax treatment of canteen expenses and refreshments

Where the employer incurs expenditure on the provision of refreshments or canteen meals or any other meals (except on business trips) to employees, the benefit arises in the hands of the employees. As the benefit cannot be converted into money's worth, it is not taxable on the employee.

Under the provisions of Section 44(L) of the Income Tax Act, the expenditure on refreshments and canteen meals is disallowable on the employer.

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