In Zambia, cryptocurrency is legal, although it currently operates without specific dedicated regulatory frameworks. While the Securities and Exchange Commission issued a caution in 2018 regarding risks, there is no outright ban on crypto activities. Looking ahead, a significant development is expected as cryptocurrencies are announced to be recognized as property under Zambian law starting in 2026. The Zambia Revenue Authority (ZRA) is the primary body responsible for governing cryptocurrency taxation. Crypto-related profits and activities are generally taxed under existing legislation, primarily the Income Tax Act and the Value Added Tax Act. For individual investors, income and gains derived from cryptocurrency are subject to progressive income tax rates, ranging from 0% up to a maximum of 37%. Capital gains from crypto sales are treated as part of an individual's income and taxed at these same progressive rates, there is no distinction between short-term and long-term gains, nor are there any holding period benefits that offer reduced rates or exemptions. Businesses engaged in crypto activities are subject to a standard corporate tax rate of 30%. Additionally, a 16% Value Added Tax (VAT) applies to crypto-related services provided by registered businesses that exceed the national turnover threshold. Converting cryptocurrency to fiat currency is a taxable event, with capital gains calculated on the profit. Crypto-to-crypto swaps are also considered taxable disposals, and any gains are subject to capital gains taxation. Specific activities like staking are treated as ordinary income and taxed at progressive rates up to 37.5%. Cryptocurrency mining is regarded as business income and is subject to the 30% corporate tax rate. For Decentralized Finance (DeFi) activities and Non-Fungible Tokens (NFTs), there is no specific tax guidance, meaning yields, interactions, and sales are generally taxed under existing income or capital gains rules. A notable upcoming change is the official classification of cryptocurrencies as property under Zambian law, which is set to take effect in 2026. This reform may provide greater clarity and a more defined legal framework for crypto assets and their taxation.
Tax Rates
| Effective individual rate | 0 |
| Capital gains tax | Progressive income tax rates up to 37%, no short-term/long-term distinction |
| Income tax on crypto | Up to 37.5% progressive rate on trading profits and crypto income |
| Corporate tax | 30% standard rate for crypto business activities |
| VAT | 16% VAT for registered businesses exceeding turnover threshold |
Activity Taxes
| Staking | Taxed as ordinary income at progressive rates up to 37.5% |
| Mining | Treated as business income at 30% corporate rate |
| DeFi | Taxed as income or capital gains under general rules, no specific guidance |
| NFTs | Taxed as capital gains or income under general rules, no specific guidance |
Taxable Events
| Crypto → Fiat | Taxable event, capital gains calculated on conversion profit |
| Crypto → Crypto | Taxable disposal, swap gains subject to capital gains taxation |
Holding Period
| Holding period benefit | None, no reduced rate or exemption for long-term holding |
Sources