Zambia

Ease of Doing Business in

Zambia

This page summarizes Doing Business 2013 data for Zambia. The first table lists the overall "Ease of Doing Business" rank (out of 185 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Sub-Saharan Africa
Income Category Lower middle income
Population 13,474,959
GNI Per Capita (US$) 1,160
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
94 90 down -4

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
60.6 60.2 down 0.4
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 74 68 up -6
Dealing with Construction Permits 151 148 up -3
Getting Electricity 151 148 up -3
Registering Property 96 96 No change
Getting Credit 12 9 up -3
Protecting Investors 82 79 up -3
Paying Taxes 47 49 up 2
Trading Across Borders 156 156 No change
Enforcing Contracts 89 87 up -2
Resolving Insolvency 99 100 up 1

Economy Profile

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Paying Taxes

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This data shows the tax that a medium-size company must pay or withhold in a given year, as well as measures of the administrative burden in paying taxes. These measures include the number of payments an entrepreneur must make; the number of hours spent preparing, filing, and paying; and the percentage of their profits they must pay in taxes.

DB 2013 Rank 47 DB 2012 Rank 49 Change in Rank up2
DB 2013 DTF** (% points) 75.7 DB 2012 DTF** (% points) 75.7 Improvement in DTF** (% points) 0.0
Indicator Zambia Sub-Saharan Africa OECD

The total number of tax payments per year. The indicator reflects the total number of taxes and contributions paid, the method of payment, the frequency of payment and the number of agencies involved for a standardized case during the second year of operation.

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Payments (number per year)
37 39 12

The time it takes to prepare, file and pay (or withhold) the corporate income tax, the value added tax and social security contributions (in hours per year).

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Time (hours per year)
132 319 176

The amount of taxes on profits paid by the business as a percentage of commercial profits.

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Profit tax (%)
1.1 19.0 15.2

The amount of taxes and mandatory contributions on labor paid by the business as a percentage of commercial profits.

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Labor tax and contributions (%)
10.4 13.3 23.8

The amount of taxes and mandatory contributions paid by the business as a percentage of commercial profit that are not already included in the categories of profit or labor taxes.

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Other taxes (%)
3.7 25.5 3.7

The total tax rate measures the amount of taxes and mandatory contributions payable by the business in the second year of operation, expressed as a share of commercial profits.

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Total tax rate (% profit)
15.2 57.8 42.7
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% profit) Notes on TTR
Pension contribution 12 24 5% gross salaries 5.6
Workmen compensation contribution 1 4% gross salaries 4.8
Property transfer tax 1 5% sale price 3
Corporate income tax 5 48 35% taxable profit 1.1
Fuel tax 1 15% fuel cost 0.5
Tax on interest 0 withheld 15% interest income 0.4 included in other taxes
Road traffic commission 4 ZMK 67,500 per quarter 0.2
Value added tax (VAT) 12 60 16% value added 0 not included
Medical levy 1 1% interest income 0
Totals: 37 132 15.2

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the indicators across all economies included in Doing Business since each indicator was included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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