ZAMBIA Law and Practice Contributed by: Mulenga Chiteba, Constance Namatai Mwango and Bwalya Milunga, Mulenga Mundashi Legal Practitioners
5. Adjustments 5.1 Upward Transfer Pricing Adjustments A taxpayer may make an adjustment where the conditions of an actual transaction differ from the arm’s length principle requirements. The taxpayer may make the relevant adjustment in the calculation of assessable income included in the annual tax return. Generally, year-end adjust - ments are permitted before filing of the income tax return for the relevant financial year. 5.2 Secondary Transfer Pricing Adjustments Zambia does not currently have specific rules concerning secondary adjustments. 6. Cross-Border Information Sharing 6.1 Sharing Taxpayer Information Zambia has signed 23 tax treaties which provide for exchange of information agreements. Further, it has signed the ATAF Agreement on Mutual Assistance in Tax Matters which estab - lished exchange of information and assistance in tax collection among the contracting countries in Africa. While Zambia has international agreements which provide for exchange of information, this is not sufficient for country-by-country (CbC) reporting purposes. Zambia has not yet imple - mented the Qualifying Competent Authority Agreements (QCAA) which govern the automat - ic exchange of CbC reports filed on an annual basis between party jurisdictions and between authorised representatives of those jurisdictions that are parties to an international agreement.
erty and the value and usefulness of the intan- gible property to the transferee in its business. In transactions involving the licensing, sale or transfer of intangible property, a person is required to consider special factors relevant to the comparability of the controlled and uncon - trolled transactions, including the following: • the expected benefits from the intangible property; • any geographic limitations on the exercise of rights to the intangible property; • the commercial alternatives otherwise avail - able to the acquirer or licensee derived from the intangible property; • the exclusive or non-exclusive character of the rights transferred; and • whether the transferee has the right to partici - pate in further developments of the intangible property by the transferor. 4.2 Hard-to-Value Intangibles Zambia does not have any special rules regard - ing hard-to-value intangibles. 4.3 Cost Sharing/Cost Contribution Arrangements The Transfer Pricing Rules recognise cost con - tribution arrangements and define them as arrangements among persons to: • share the costs and risks of developing, pro - ducing or obtaining assets, services or rights; and • determine the nature and extent of the inter - ests of each participant in the results of the activity of developing, producing or obtaining the assets, services or rights. There are no special rules that apply to these types of arrangements.
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