Taxation

Tax always comes into play in almost every facet of your business. To avoid surprise losses related to tax, tax advice needs to be sought before you enter into business transactions. Hence, tax planning is best developed in advance. However, certain transactions may have been undertaken without proper tax planning or even without any tax planning at all.

In those situations, you will need to identify tax risks and find ways to mitigate them.


How HLB Reliance (Zambia) can help you?

You may discuss with us your envisaged transactions or deals. It would be better if you could provide us with relevant draft agreements. This will help us better understand your business and, in particular, the envisaged transaction. Thereby, identify the relevant tax implications from a Zambian perspective, and recommend ways to mitigate the relevant tax risks.

You may also discuss with us transactions or deals that you have undertaken, but about which you are uncertain of the tax implications from a Zambian tax perspective. We will identify the tax risks and recommend ways to mitigate them.


Companies with international plans and operations need to be able to fully rely on tax professionals who can provide a combination of local attention and global capabilities. HLB Reliance (Zambia), through its international network of independent professional member firms, can help you with the necessary advice and support.

Services provided by HLB Reliance (Zambia) member firms include:

  • International tax planning
  • Choice of business entity
  • Transfer pricing
  • Expatriate taxation
  • Intellectual property
  • International personal taxation

If you do business in or with several countries, you are faced with different tax rules in all of them. Wage tax, VAT, profit tax, customs payments, social security, subsidy opportunities – there are as many rules as there are countries. Practical issues are different too. In some countries, including France, an accountant may not deal with tax matters. Local knowledge is a must if you want to minimise your tax burden.

In those situations it’s good to know that you can rely on HLB Reliance (Zambia). Due to our membership with HLB International the member firm network, allows us to branch out into 130 countries. We and our international colleagues like to help to get you going with tax services, expatriate tax services, VAT and customs issues, payroll services and transfer pricing. And the great thing is that you always have just one contact person.

If your company has sites in several countries, it may be favourable from a fiscal point of view to enter the profit in those countries with the most favourable tax rates. A transfer-pricing study prevents you from encountering difficulties with the tax authorities in the various countries. It contains the prices you apply and that forms the basis for deciding which elements of the profit are entered in which country.

However, a transfer-pricing study is more than an obligation resulting from the Corporation Tax Act. You can set up a good transfer-pricing system to audit your business organisation in the different countries. Which site achieves which result and why? Where and how can you direct and control? We can offer support.

We use questionnaires completed by you and interviews with key figures within your business to prepare a draft transfer-pricing study. After we have discussed that with you, we calculate which part of the profit may or must be allocated to which site. If you wish, we can present the result to the Tax Authority, and then it’s up to them to point out any shortcomings. Without such a study the burden of proof rests with you during an audit.

Globalisation has created questions and issues on a worldwide scale, but also opportunities and chances for your employees when they work for a site abroad. But what about salaries, pension accrual, social security and income tax?

Our co-operation with comparable organisations within the HLB International network enables us to support you and your ‘temps abroad’ with advice and actions. We have knowledge of local regulations, fiscal planning of salary for different countries, tax returns in different countries, advice on pension premiums and social-security payments.

If you arrange everything properly in advance, sending your employees abroad should not produce stress for anybody and you’re simply left with unrivalled chances and opportunities for you and your employee.

Many entrepreneurs see VAT as a burden that offers no opportunities. You have to pay it and that’s it. Yet there are opportunities in the area of VAT… and risks. Think about it, how much VAT do you pay in a year? You have to pay it even during years when you do less well.

Then there is your business across the border. No doubt you receive bills from abroad or you send those invoices. Every country has its own VAT rules. If you engage in physical trade abroad, you have to cope with customs rules to boot.

Our VAT specialists know all the pitfalls and see the opportunities. They like to share that knowledge. An example? Consider leasing property. It will have been up for sale for a long time and is then leased. If you’re not careful, a large part of repaid VAT from the past may have to be paid back. Better to avoid that.

Would you like to know your VAT situation? Please contact a HLB Reliance (Zambia) consultant for a VAT scan for property, international trade and transport.

Do you have sites in several countries? You and the employees you’ve sent there will have to deal with local regulations. You, as employer, or your HR Department need to find your way in terms of taxes and social regulations in every country you operate in. This makes it difficult to compare terms and conditions and remuneration within your company.

HLB Reliance (Zambia) offers you one point of contact who can deal with all the remuneration issues of employees in the Zambia and abroad. Your HLB Reliance (Zambia) consultant talks to the offices of HLB International in the country, co-ordinates monthly wage-tax returns in the different countries and produces an unambiguous report. With these international payroll services you can compare without difficulties and you develop a remuneration policy.

The remuneration of all your employees in Zambia and abroad, properly organised and in one place – once again, we care!

The world is becoming smaller. Globalisation and the internet have provided new perspectives and opened up new markets that can be conquered. You can make the best use of your opportunities when you can build on local help from consultants who know all the ins and outs of the relevant tax system for example.

You can avoid the risk of surprises when you know the local rules, including all the pitfalls, rates and periods you need to take into account.

We can advise you on how the correct company structure in different countries can produce significant tax savings. What do you need to take into account, what is eligible for subsidy, where do environmental requirements apply, who deals with what? We form part of the HLB International network, and if you prefer we travel with you to sort out the things that need to be sorted out. That is ‘local touch, global reach’ in action.