The Zambia Revenue Authority ZRA and the National Arts Council of Zambia ( NACZ ) have signed a Memorandum of Understanding (MoU) aimed at enhancing the payment of withholding tax from payments made to foreign artists.
This is pursuant to the provisions of section 82A of the income tax Act CAP 323 of the laws of Zambia.
Section 82A subsection (e) of the income Tax Act CAP 323 empowers ZRA to collect withholding taxes from public entertainment fees before such fees are paid to the entertainer.
This is contained in a press release made available to ZANIS by ZRA Corporate Communications Manager Hildah Kawanzaruwa in Lusaka today.
Ms Kawanzaruwa explained that NACZ will ensure that all promoters comply with tax obligations through issuance of a tax clearance certificate before authority is granted to them to hold shows and concerts.
She said NACZ will also be charged with the responsibility of collecting demographic information from all promoters such as forenames and surnames of suppliers.
Others are the National Registration card number, residential addrss and contact deatails adding that the deatails of the principle contact person as prescribed by ZRA will also be required.
She stated that ZRA will receive and issue withholding Tax Assessments and issue clearances upon payment of the tax.
Ms Kawanzaruwa said ZRA will further assist NACZ capture information on activities of foreign artists in areas where NACZ has no physical presence but where ZRA has offices.
She said the authority will also carry out sensitization and education campaign programmes for artists and promoters upon request from NACZ.
ZANIS
welll done but this should be extended to local artists,the tax base in zambia is too small.Everybody who earns income should pay tax.We have a leader who claims more money in your pockets and low taxes but majority of his supporters are not taxpayers.
I wonder if the local artists themselves pay taxes. This decision by ZRA will just stop foreign artists from visiting Zambia. Promotors don’t make much money when they invite musicians such as Koffi Olomide because of direct costs involved from accomodation to food etc so this will effectively curtail the promotion of foreign musicians in Zambia,no one will invite them.
jIGGA wanama,those issues are taken care of through gate charges.How do you pay $50 to watch a Congolese artist & take everything to Congo whilst the income is earned from zambia.Its as good as saying all foreign nationals working in Zambia should not pay tax.