Tax Implications for Zambian Forex traders

Many Zambian Forex traders are unsure of their legal tax obligations towards the Zambian Revenue Authority  (ZRA). Most trading accounts are overseas, and the gains made from their trading are not visible to the ZRA; some traders open trading accounts with Forex brokers located in Zambia or with brokers with branches in Zambia. In this case, these traders’ capital won’t leave the country.

Traders must pay tax on earnings

It is a common misperception that traders don’t need to pay income tax on profits made in offshore trading accounts. Suppose a Zambian resident generates profit from trading in an offshore trading account while residing within the borders of Zambia. In that case, the profit is regarded as normal taxable income and needs to be declared in their tax returns. In this case, it doesn’t matter where the income originates from but rather where the person resides while generating that income.

Tax rates for individual traders and special trusts

Forex traders who trade in their individual capacity and special trusts are subject to income tax under ZRA's income tax for individuals.

This article is a general guide and is not intended as individual legal tax advice. For more specific information on Zambian tax legislation please consult a registered tax practitioner or the Zambian Revenue Authority.