8/13/2019 UK/Zambia Double Taxation Agreement Press Release

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PRESSRELEASE

Press & Public Affairs Section

British High CommissionPO Box 50050

LUSAKATelephone: +260 21 1 423 200

Fax: +260 21 1 423 291E-mail: LusakaPressEnquiries@fco.gov.ukWebsite: https://www.gov.uk/world/zambia

Follow us on Facebook and Twitter: @UKinZambia

UK and Zambia sign a Double Taxation Agreement

Today 4 January 2014 the United Kingdom (UK) and Zambia signed a DoubleTaxation Agreement that will see businesses and individuals in both countries payingtax fairly and equitably.

The Zambian Minister of Finance, Alexander Chikwanda, signed on half of theZambian Government while James Thornton, British High Commissioner to Zambia,

signed for the UK at a ceremony held at the Ministry of Finance in Lusaka.The Agreement replaces the existing Double Taxation Agreement between the UKand Zambia. Double Taxation is the levying of tax by two or more jurisdictions on thesame declared income, asset or financial transaction. This double liability is oftenmitigated by tax treaties between countries.

At the signing ceremony today James Thornton said;

I am delighted to be signing thi s Double Taxation Agreement.

The UK and Zambia have a very strong partnership. In part it is based on asubstantial development co-operation programme, which last year reached its biggestever size. But, as Zambia grows more prosperous, it is important that it also has astrong commercial basis. I am pleased that trade between our two countries has beengrowing steadily recently.

This Agreement will help underpin that commercial relationship. It replaces anagreement between our two countries that dated from 1972, and which had becomesomewhat out of date.

The new Agreement takes account of changes in the taxation policies of both our

countries, and of international developments in this field. A particularly important

mailto:lusaka-BHC@fco.gov.ukhttps://www.gov.uk/world/zambiahttps://www.gov.uk/world/zambiamailto:lusaka-BHC@fco.gov.uk

8/13/2019 UK/Zambia Double Taxation Agreement Press Release

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new provision is for the exchange of information between our financial authorities tohelp combat tax evasion.

Ends

Notes to the editor:

It is common for a business or individual who is resident in one country tomake a taxable gain (earnings, profits) in another. Without agreement such asavoidance of double taxation it may mean that a person or business may findthat he is obliged by domestic laws to pay tax on that gain where he or she isresident and pay again in the country in which the gain was made.

Since this is inequitable, and not good for business therefore many nationsmake bilateral double taxation agreements with each other.

More information on double taxation can be found on Her Majestys Revenue& Customs website: http://www.hmrc.gov.uk/international/dta-intro.htm

For further information, please contact the British High Commission on +260211 423200 or follow us on Facebook and Twitter: @UKinZambia.

British High Commission, Lusaka4 February 2014

http://www.hmrc.gov.uk/international/dta-intro.htmhttp://www.hmrc.gov.uk/international/dta-intro.htmhttp://www.hmrc.gov.uk/international/dta-intro.htmhttp://www.hmrc.gov.uk/international/dta-intro.htm