Overview
There is a good choice of accountancy firms in Lusaka and other business centres, including affiliates of the global accountancy groups KMPG, PWC, Ernst and Young and Deloitte. Zambia is in the early stages of adopting the International Financial Reporting Standards (IFRS) as companies and banks are permitted but not obliged by the Zambia Institute of Chartered Accountants (ZICA) to prepare their financial reports in accordance with the IFRS. The World Bank Ease of Doing Business Index ranks Zambia 96th out of 183 countries with regards to resolving insolvency (2011). In terms to strength of auditing and reporting standards, Zambia is in line with the world mean of 4.6 out of 7 according to the World Economic Forum Global Competitiveness Report (2012-2013).
Profession
The Zambia Institute of Chartered Accountants (ZICA) is the professional body. Access to the Association of Certified Chartered Accountants (ACCA) is good with a base in the capital Lusaka. ZICA has run its own accountancy programme since 2007 which has been endorsed by the International Federation of Accountants (IFAC) as well as the Pan African Federation of Accountants (PAFA). The programme is available country wide with 22 examination centres located around Zambia.
Tax
Companies incorporated in Zambia pay tax at 35% on net income, mining companies at 30% and banks at 40% for net income over 250 million kwacha. Personal income tax is progressive from 0–35%. A standard rate of 20% value added tax (VAT) is raised on the sale of goods and services; most exports are zero-rated; and food, health, education and property are exempt. The Zambia Development Agency Act provided for tax incentives in priority sectors or products. The World Economic Forum’s Global Competitiveness Report ranks Zambia 33rd out of 141 countries worldwide with regard to total tax rate (2012-2013). In paying taxes the World Bank Ease of Doing Business Index places Zambia 47th out of 183 countries, only three places below South Africa in 44th place.
