ZRA hot on withholding tax

Thu, 15 Feb 2018 11:01:20 +0000

By BUUMBA CHIMBULU

THE Zambia Revenue Authority (ZRA) will start physical surveys of real properties throughout the country from March 2 and has since urged landlords and tenants to register for withholding tax on rental income before the exercise begins or face sanctions.

The authority has since given an opportunity to all landlords and tenants that are not registered and are not paying withholding tax on rental income to register before March 1

ZRA acting commissioner general, Brigitte Muyenga, explained that income from letting of property was liable to withholding tax at the rate of 10 percent of gross rentals.

“Section 45 of the Income Tax Act Chapter 323 of the Laws of Zambia required every person within thirty days from first receiving taxable income to give written notice to the Commissioner-General may prescribe. The law further requires the tenant to be registered for withholding tax for purposes of accounting,

“In exercise of his powers under the Income Tax Act, the Commissioner-General wishes to urge all landlords and tenants to come forward between today,  14th February 2018 and 1st March 2018 and get registered,” Ms. Muyenga said.

She said yesterday in Lusaka at a press briefing that the authority would therefore commence physical surveys of real properties throughout the country from 2nd March 2018 in collaboration with various stakeholders.

Ms. Muyenga said people found wanting during the exercise period would face sanctions as prescribed by the Income Tax Act Chapter 323 of the Laws of Zambia.

She emphasised that registration was free and that it could be done online or at the nearest ZRA offices.

“Landlord’s obligation are: register for income tax and obtain a Tax Payers Identification Number (TPIN), submit an annual income tax return making full declaration of the rental income and other income received during the year and submit a provisional tax return (applicable to taxpayers registered for income tax) among others,

“Tenants obligations are; register for withholding tax and obtain a TPIN, deduct and pay the withholding tax amount working 14 days following the month of payment of the rentals and give a copy of the receipt in respect of the payment and certificate of deduction to the landlord within 14 days of making payments among others,” Ms. Muyenga said.

And ZRA commissioner for domestic taxes, Moses Shuko, emphasised that there was no threshold in rentals as it was applicable on any amount a tenant was paying.

“We have received complaints that there are landlords who do not want to offer their tenants the TPINS for them to register. So if this happens they must report to ZRA and the law will follow them so anyone refusing to facilitate the registration is basically evading tax,” said Mr. Shuko.