The far-reaching amendments to Zambia's mining tax regime
announced by Finance Minister Alexander Chikwanda in his 2015
Budget Speech on 10 October 2014 and presented to Parliament on 28
November 2014, were passed by Parliament on 17 December 2014.
With effect from 1 January 2015 open cast and underground mining
operations are exempt from corporate income tax, but will be
subject to a final 8% mining royalty in respect of underground
mining operations and a 20% mining royalty in respect of open cast
mining operations. Zambia has already doubled mineral royalties to
the 2014 rate of 6% in 2011.
The new tax system aims to collect mining revenue at different
stages in the production process with 30% corporate income tax to
be levied on income earned from the processing of purchased mineral
ores, concentrates and any other semi-precious minerals, as well as
income earned from tolling (an agreement between the owner of raw
materials and another party for processing such
