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Tuesday, August 4, 2020

ZRA orders tenants/landlords to pay withholding tax on rental income

Economy ZRA orders tenants/landlords to pay withholding tax on rental income

The Zambia Revenue Authority (ZRA), has warned of taking stern action against tenants and landlords who will fail to remit withholding tax on rental income to the authority.

ZRA Corporate Communications Manager Mumbuna Kufekisa said in spite of the authority having an obligation to sensitize property owners and tenants on the need to pay 10 percent withholding tax on rental income, ignorance on their part was not a defense.

Mr. Kufekisa said failure to pay withholding tax and other kinds of taxes was tantamount to breaking the law and defaulters would not be spared.

“Two months ago we graduated about 35 prosecutors. These are internal prosecutors that are going to prosecute offenders that do not pay tax,” he said.

He said this in an interview with journalists in Livingstone on Tuesday, after a sensitization workshop for the business community on rental income for tenants and landlords and the ZRA electronic paying system, ASYCUDA.

The workshop was held in collaboration with the Zambia Chamber of Commerce and Industry (ZACCI).

Mr. Kufekisa reiterated that ZRA had a mandate to collect taxes on behalf of government and if people defaulted, there would be less money going to the treasury.

He said ZRA would partner with the Ministry of Lands, ZESCO, Local authorities and other government agencies so as to tap into their data and establish a database that would enable the authority identify and locate tenants and landlords.

“And the house numbering system introduced by ZICTA will also be helpful in growing our database. In the past few years the industry in Zambia has been growing in terms of infrastructure development, so it is not difficult for us to gather that information,” he said.

Earlier, Livingstone Chamber of Commerce and Industry President Miles Daka, said the business community had a challenge of how to access information from the ZRA.

Mr. Daka said this made it difficult for them to understand the policies that government was implementing through agencies like ZRA.


    • So ZRA you want my landlord to evict me for giving him less money? He will say ati ” So wayamba kunipasa ndalama zoshota? Kansi iwe naba ZRA bako muchoke munyumba mwanga”…lol

    • ZRA the issue you are going for the soft target yet mines are getting away with tax inversion and tax avoidance.

    • ZRA the issue is you are going for the soft target, yet mines are getting away with tax inversion and tax avoidance.

  1. the zambian way of building is a strugle one,how many people does zambia nationyo building society give bonds to who are not politically conected,if still i qualify how bond would i get,people build through their sweat one pocket of cement per month except thaht with build when you add 1 brick the house goes up and now you want tax for what?go into those houses and see the finishing and ask yourselves how much 1 would rent out that house if you get the tax from him is he even going to finnish it up to a habitable standard because you are getting what he is suppose to you use to finsh his house,shame upon you,killing people with high cement price and expensive building materials because of your tax,pf has failed us zra dont be used like a used condom,very silly people fusekeni

  2. Ati ”…. He said ZRA would partner with the Ministry of Lands, ZESCO, Local authorities and other government agencies so as to tap into their data and establish a database that would enable the authority identify and locate tenants and landlords.” which more inefficient agencies will they partner with other than the council (always confusion), ZESCO (serial loadshedders), Ministry of Lands (the most corrupt Ministry in Southern Africa), Government agencies (the way they like ‘organising things). Aka lilo kamoneka! A word of advice to ZRA- keep tax simple and a pleasure to pay!

  3. Taluli I wont pay already fuel is so high, the dollar has gone bezzeck, cost of living is so high. Awe apapena tafyabombe. These guys have taken Zambians for granted. Foolish pipo.

  4. Ukuluka kwalikalipa mwalitumpa sana ba mambala. You dont know the hell one goes through when building the house.

  5. People will willingly pay such tax if only Councils and government can provide the much needed services such as water reticulation, sewerage, roads and electricity. Currently, people struggle to build these houses and government is lamentably failing to provide these services to these homes. And yet all we see are new Land Cruisers. Why can’t you divert this money to buy graders, Refuse tracks etc. Is tax meant to benefit few people?

  6. These Chimpanzees are truly broke. This country has to go down to knees for them to run out of bananas. Then we learn. kekeke

  7. Useless stupid and foolish I we muziba che kutenga ndabama kubantu naku zinyopola wenzeko pamene nenze kuvutika kumanga nyumba? Na load shading plus fuel increment bazadya Anyoko Bana banga. Kupusa bati. Go to the borders for customs and those millionaire companies who are evading tax, not from the poor’s little rental in Kanyama naimwe mudyemo. Does this Government think or it’s on Auto Pilot waiting to Crush. HH come and Liberate us please natuchula.

  8. You have failed to tax those who are getting our minerals and externalizing the sales, you now want to trouble the already poor people. Call for early elections we sought you guys out.

  9. Landlords make sure you command your tenants to pay withholding tax to ZRA .What you should you know is that this same tax is government revenue which at the end of day this is channeled to developmental projects.If government does not make these roads you are on number one condemning government.Obliged please!

    • Unfortunately, the roads are constructed on borrowed money. Internally generated resources a are being used by the party in power to buy vehicles for their campaigns and malicious adverts!

      For now Tenants, Fix your rents at your peak and pass the taxes to tenants. If everyone did that, the cost of living goes up, the poor workers will demand more money and then make this horrible government unpopular!


    • On this one I don’t support the government. I paid tax on the materials and loans that I used to build my houses. I pay PAYE, road tax etc

    • Now Zambia has been handed to the cats. Whats all this fuss! Oh God help mother Zambia to wake up next time!

  10. Yabako rather iyi Nkani, sorry not me, Try Easterners who to me are very dull and will start paying very soon. Not umwina Zambia inkonko. Hard core patriotic Zambian.

  11. its ridiculous really, but am curious can ZRA legally trouble the tenant for this. its an expense for them how do they get dragged into this. wat does the act say

  12. We got loans and paid high interest on these loans. VAT was paid on building materials, PAYE was deducted from salaries. What more do you want from us poor Zambians. If you continue this case ba PF you shall be in problems next elections. Every one is either a tenant or landlord. So we are all affected.

  13. The law is law…you can’t live in a black market economy forever..you simply have to push your govt to spend money wisely. ..than forever be docile.

    wake up!!

    • Let them tax the mines. They are failing to get their dues from the mines, ba sichuuuuuuuuuuuuuuuuuuuuuuuuuuupiti

  14. IF you have failed and you don’t have proper policies how to run the government you better resign. And on this one this is total madness and failure

  15. How much does this goverment want to extract from its poor citizens sure?Have a heart for your people , the fact that most of you leaders are now enjoying doesnt mean that its every boby NO.Life is currently very hard in zambia.And what do we see from you leaders just luxuary life.Kabwili changes goverments cars like bicycles today he is in a latest toyota landcruser tommorrow latest nissan patrol very expensive vehicles and you *****s you want me to pay that tax so that Kabwili can buy fuel for his expensive fleet of govt vehicles NAKANA….

  16. Someone educate me here. I rent a shack in Lusaka’s Linda compound for K250 per month. Will my law abiding landlord calculate 10% from the K250 (K25) I pay him by reducing his revenue or will he charge 10% on top of my rentals raising rentals to K277.77 (K27.77) by maintaining his income but increasing my rentals? Where does he go to pay? I also doubt his house (Shack) is on title, so does he qualify to pay withholding tax?. If he doesn’t pay, how will ZRA track him down? Does ZRA have the capacity to monitor each and every house/shack and are they going to come knocking on my door one day? Help me. What is ZRA’s action towards street vendors littering Freedom and Lumumba roads? Are they collecting any taxes?

    • Read your contract. You should be paying net of tax (most of you don’t bother to read). That means that you have been responsible for paying the tax since time immemorial. Good luck.

  17. It is a pity Zambians can take all kinds of sh1t otherwise the government wouldn’t come up with such exploitative schemes. Why does the GRZ need the money for when there is no service delivery on the ground? The docility of Zambians is their main downfall. This is harassment par excellence.

  18. It baffles me how Zambians operate. The question is, has this law been there or not? As usual you elect to pick and choose which laws your will respect and which ones you want struck off. Unfortunately at this point in time your best bet is to begin to lobby for an amendment. If it is in the books and you have not been paying you must thank your lucky stars this has not been backdated.

  19. My house, with title in my name, is on the Copperbelt. The Land rates bill still appears under ZCCM. I stay in a rented house in Lusaka, which belongs to a guy that bought it off someone who bought it off someone else.
    The LWSC bill is in the 1st owner’s name, the ZESCO one in the 2nd, Land rates in the 3rd. I am paying these bills and I haven’t bothered to change the status quo, just like my tenant.
    He also pays my Land Rates when he sends me the demand notice and I send him money or ask him to deduct from his rentals and pays the difference. My tenant knows this way, he will continue staying in my well maintained house and will have minimal rental increments! I do the same with my Landlord. This way everyone is happy, of course except ZRA.

    ZRA reconcile this..

  20. Legal as this is, it’s really unfortunate the gov’t is failing to get maximum revenue from Mines. Accommodation is as vital as air.

    There must be room for tax rebates………make the people happy?!

  21. Let them come up with a threshold coz I remember wen this law came into force it targeted bigger properties rented out to registered companies or individuals. We rented a building to use as offices along panganani road in Lusaka at ZMK200 Million non revised yes we where paying that landlord less 10% WHT that 10% was being paid to ZRA and a copy receipt was being given to the landlord as proof that we are paying to ZRA. No this time a round it all the houses whether in compounds some cost 100kwacha per room does those low rented houses qualify for this tax or it’s just kolopa before they go. These are kicks of a dying horse. Some ministers we know them they own mansions rented out to Ambassabors at 25000USD per month are they paying? Start with Kumayard not kwa komboni. Apply KU name KWA

    • @AM no.29, above has it right. Yes a threshold should apply. Most poor are renting almost above their earnings.

      Leave the down town areas out.

  22. Stop making noise, we pipo of muchinga, northern and luapula provinces think we are intelligent yet we cant even realize and think straight. We are always bought just by drinking chibuku and wearing cheap fitenge. We are totally dander headed fools who can b used like toilet paper and discarded. We are vocal for nothing. ZRA CHOP OUR HEADS WITH RENTAL INCOME TAX. We are tribal and a curse is upon us for voting blindly.

  23. When they wanted to effect windfall tax. mine investors threatned to pull out and dismiss a large number of employees.Thereafter there was a back off on the issue of wind tax. now it’s rental tax income.landlords will simply do the same by envicting there tenants and put there relatives in those houses.

  24. We have to get above pettysm and face reality. The Witholding tax on rent is nothing new, it has always been there. When you become a landlord you are generating income on land that belongs to the GRZ but rented out to you for 99 years so you MUTS pay WHT on rent, its common sense c’mmon guys,

  25. On this Edgar Lungu must show leadership if he really needs our votes in 2016!!this is very sad news to us poor Zambians.WHERE ARE LOWER TAXES WHICH PF PREACHES?PLUS ALL CURRENT MPS ARE USELESS!!CHIKWANDA MUST GO AND THE TIME IS NOW!!

  26. Comment: this 10%, is it supose to come from the rentals or from the tenant’s pocket. If that’s the case, then it’s jst the same as rentals increament.

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