Zambia Provides Temporary Withholding Rate Reduction on Treasury Bills and Bonds

On 22 March 2019, Zambia issued the Income Tax Act (Suspension of tax on payment of interest to non-residents) (Treasury Bill and Bond) Regulations 2019, which provides for a temporary reduction in the withholding tax rate to 15% on interest derived by non-residents from a treasury bill or bond. The standard rate on interest was increased from 15% to 20% as part of the tax changes for 2019 ({News-2019-03-19/A/6-previous coverage}). The 15% rate is effective from 1 January to 31 December 2019.…