ZAMBIA Law and Practice Contributed by: Mulenga Chiteba, Constance Namatai Mwango and Bwalya Milunga, Mulenga Mundashi Legal Practitioners
Mulenga Mundashi Legal Practitioners Plot 11058, First Floor Zimbabwe House Haile Selassie Avenue Long Acres PO Box 34072
Lusaka Zambia
Tel: +260 211 254248 / 254250 Fax: +260 211 254260 / 254266 Email: info@mmlp.co.zm Web: www.mmlp.co.zm
1. Rules Governing Transfer Pricing 1.1 Statutes and Regulations The rules governing transfer pricing include leg - islation and various regulations. These are the Income Tax Act, Chapter 323 of the Laws of Zambia (the “Income Tax Act” ) as read with the Income Tax (Transfer Pricing) Regulations, and Statutory Instrument No 20 of 2000 (the “Trans- fer Pricing Regulations” ) (collectively, the “Trans- fer Pricing Rules” ), as amended by the following regulations: • the Income Tax (Transfer Pricing) (Amend - ment) Regulations, Statutory Instrument No 24 of 2018; • the Income Tax (Transfer Pricing) (Amend - ment) Regulations, Statutory Instrument No 117 of 2020; • the Income Tax (Transfer Pricing) (Amend - ment) Regulations, Statutory Instrument No 107 of 2021; • the Income Tax (Transfer Pricing) (Amend - ment) Regulations, Statutory Instrument No 89 of 2022; and
• the Income Tax (Transfer Pricing) (Amend - ment) Regulations, Statutory Instrument No 62 of 2023. 1.2 Current Regime and Recent Changes Transfer Pricing Rules in Zambia were first intro - duced in 1999 under Section 97A of the Income Tax Act Chapter 323 of the Laws of Zambia ( “Income Tax Act” ), and the Income Tax (Trans - fer Pricing) Regulations, Statutory Instrument No 20 of 2000 (the “Transfer Pricing Regulations” ) in the year 2000. However, the Zambian gov - ernment only began to focus on major trans - fer pricing reforms in 2012, when four officers from the Zambia Revenue Authority’s (ZRA) Large Taxpayers Office undertook transfer pric - ing audits within mining and non-mining audit units. These reforms commenced when the ZRA became aware of the need for robust documen - tation rules to clarify taxpayer expectations and avoid unnecessary delays in the audit process. In March 2016, the ZRA created a Transfer Pric - ing Unit comprising four officers with the aim of providing a direct focus on transfer pricing audit
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