Zambia: Budget Changes
The purpose of this notice is to highlight that the Minister of Finance in Zambia, the Honourable Margaret D. Mwanakatwe, delivered her 2019 budget speech on the 28th of September 2018 to the National Assembly.
Amongst other matters, the Minister addressed the tax bands applied to employment income, which remain unchanged.
The minister also addressed the tax on dividends to be increased to 20% for all non-residents receiving royalties, commissions or interest payment across borders.
The greatest change to brought into effect with the budget speech is the implementation of The National Health Insurance Act No 2 of 2018. Minster Mwanakatwe, noted the Act would come into effect as from 2019.
Per the National Health Insurance Act, it is the responsibility of the employer to pay over employee and employer contributions at the end of each month.
All employers must register themselves and employees with the authority. All new employees will need to be registered within 30 days after the commencement of a new employment contract. Foreign workers without valid travel insurance for their stay in Zambia, will be obligated to register and contribute to the NHI scheme.