SKILLS DEVELOPMENT LEVY
Who Must Pay the Skills Development Levy?
Obligation: Any employer registered for PAYE must also account for SDL. You
don't need to register separately for SDL—it's included in your PAYE filings.(Zambia
Revenue Authority)
Rate: SDL is charged at 0.5% of the gross emoluments paid to employees (including
casuals), and cannot be deducted from the employee’s pay. The employer bears this
cost.(Zambia Revenue Authority, Zambia Laws)
Remittance: This levy is due when you pay the employee and must be remitted to
ZRA by the 10th of the following month, together with PAYE.(Zambia Revenue
Authority)
Even if there's only one employee, because the company is PAYE-registered, SDL applies
unless exempted.
Who Is Exempt from Paying the Levy?
According to the Skills Development Levy Act, exemptions include employers who are:
1. Part of the public service or local authorities
2. Those whose annual turnover is below K800,000
3. Registered public benefit organisations, under Income Tax law(Zambia Laws)
If your company’s annual turnover is under K800,000, you do not have to pay SDL—
regardless of the number of employees.
Summary Table
SDL
Scenario Details
Applies?
Private company, PAYE-
registered, 1 employee, turnover < No Exempt due to low turnover.
K800,000
Private company, PAYE- Must calculate 0.5% SDL on gross
registered, 1 employee, turnover ≥ Yes emoluments; remit by the 10th of following
K800,000 month with PAYE.
Public service/local authority or Exempt by classification, regardless of
No
public benefit organisation turnover or employee count.
Final Answer in Your Case
Disability Tax Credit (Specific Tax Credit)
There is a disability tax credit available under Zambian tax law. It provides a credit of K600
per month, totaling K7,200 per year, for qualifying disabled employees. This credit directly
reduces tax liability and does not reduce taxable income ([Link]).
General PAYE Reliefs or Tax Credits?
A review of available sources—including the official ZRA PAYE bands, calculators, and
recent tax updates—did not reveal a general personal tax credit or standard relief equivalent
to, for example, a personal allowance or rebate that applies to all taxpayers in 2025.
The publicly shared PAYE tax bands for 2025 are as follows:
First K5,100 → 0%
K5,100.01 to K7,100 → 20%
K7,100.01 to K9,200 → 30%
Above K9,200.01 → 37% (Zambia Revenue Authority, [Link],
iCalculator™ ZM)
While the zero-rate threshold (K5,100 monthly) functions similarly to a relief—by allowing a
portion of income to be tax-free—it isn’t referred to as a “tax credit” in ZRA materials.
Summary Table
Type of Credit/Relief Amount Applies To
Disability Tax Credit (annual) K7,200 (K600/month) Qualifying disabled employees
General tax credit or personal relief None identified All taxpayers (2025)
Bottom line: For 2025, the only specific tax credit identified is the disability tax credit—
K600 monthly or K7,200 annually—for qualifying disabled individuals. There doesn't appear
to be any universal PAYE tax credit or relief beyond the standard tax bands.
Would you like help verifying whether any additional credits or reliefs apply (e.g., for
dependents or specific circumstances)? Let me know!
If you're asking about the annual turnover threshold for exemption from the Skills
Development Levy (SDL) in Zambia: employers whose annual turnover is below K800,000
are exempt from paying SDL (Zambia Revenue Authority).
In other words, even if your business is registered for PAYE and has employees, if your total
annual turnover is less than K800,000, you do not need to pay the SDL.
1. What is a PAYE Refund?
A PAYE refund is money that Zambia Revenue Authority (ZRA) gives back to you if,
during the year, you paid more tax than you were supposed to under the Pay As You Earn
(PAYE) system.
Think of it like this:
Every month, your employer deducts tax from your salary and sends it to ZRA.
Sometimes, the tax taken is more than what you should have paid based on your
total income and allowable deductions.
If that happens, ZRA calculates the extra and returns it to you — that’s your refund.
2. Who Qualifies for a PAYE Refund?
Under ZRA rules, you can qualify if:
1. You overpaid tax — for example:
o You were taxed at a higher rate by mistake.
o You worked for only part of the year, but your employer taxed you as if you
worked all year.
o You had allowable deductions or credits that were not considered (e.g.,
disability tax credit, pension contributions).
2. You meet ZRA documentation requirements — you must have:
o A Taxpayer Identification Number (TPIN).
o Proof of income and PAYE deducted (usually through your P9 Form or
payslips).
o Proof of allowable deductions/credits (if claiming them).
3. Your tax account is in order — no outstanding taxes or penalties owed to ZRA.
3. How It Works in Practice
1. At the end of the tax year, you (or your employer) submit your annual PAYE return
to ZRA.
2. ZRA reviews it.
3. If you paid more than you should have, ZRA approves a refund.
4. The refund is processed and paid — usually via your bank account — after ZRA
verification.
✅ Example:
You earned K5,000/month for 6 months, then stopped working. Your employer taxed you
each month. ZRA’s yearly calculation might show you should have paid less total tax
because your annual income was low — so you get the difference back.
