According to the Zambia Revenue Authority, in part three of the Second Schedule, there are specific provisions for tax treatment of public benefit organizations and other organizations, specifically organizations working on relief of poverty, advancement of education, advancement of religion and the protection and care of the sick. According to Income Tax Act Cap 323, ecclesiastical, public benefit organization and educational institutions of a public character are exempt from tax. “The income accruing to all ecclesiastical, public benefit organization and educational institutions receive privileged tax treatment.” Donations made to public benefit organizations are tax deductible from the income of the donors (i.e. persons who make donations). Donations made by individuals to eligible organizations receive up to 15% deductions, although the precise share of a donation that can be claimed is debatable. The Minister of Finance must approve a religious, public benefit organization or educational institution in order for it to qualify for the tax exemption.
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