— The Zambian Government has today signed a double taxation agreement with the United Kingdom that will see businesses and individuals in both countries paying tax fairly and equitably.
Acting President Alexander Chikwanda, signed on half of the Zambian Government while British High Commissioner to Zambia James Thornton signed on behalf of his government at a ceremony held at the Ministry of Finance in Lusaka.
This is contained in a statement from the Public Relations department at the British High Commission in Lusaka, today.
Mr. Chikwanda, who is also Minister of Finance, said the Agreement replaces the existing Double Taxation Agreement between the UK and Zambia.
Double Taxation is the levying of tax by two or more jurisdictions on the same declared income, asset or financial transaction. This double liability is often mitigated by tax treaties between Zambia and Britain.
And British High Commissioner to Zambia James Thornton says he was delighted to be signing the double taxation Agreement.
He said this was because UK and Zambia have a very strong partnership that is based on a substantial development co-operation programme.
“As Zambia grows more prosperous, it is important that it also has a strong commercial basis. I am pleased that trade between our two countries has been growing steadily recently.
“ This Agreement will help underpin the commercial relationship,” Mr. Thornton said.
The British Envoy explained that the signing in Lusaka today replaces an agreement between the two countries that dates over three decades in1972 which has now become fruitful to-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 new provision is for the exchange of information between our financial authorities to help combat tax evasion.”