ZRA targets Landlords and Tenants: Register for withholding tax on rental income or face the law

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ZRA Commissioner General Kingsley Chanda
ZRA Commissioner General Kingsley Chanda

The Zambia Revenue Authority (ZRA) Commissioner General Kingsley Chanda has urged all landlords and tenants in Zambia, who are not registered and are not paying withholding tax (WHT) on rental income, to come forward between today, 14th of February 2018 and the 1st of March and get registered for tax purposes.

According to the statement released to the media by Topsy Sikalinda, the Corporate Communications Manager, section 45 of the Income Tax Act Chapter 323 of the Laws of Zambia, requires that every person, within thirty days of first receiving taxable income, give written notice to the Commissioner-General of the Zambia Revenue Authority.

The statement further warned that ZRA will commence physical surveys of real properties throughout the country with effect from 2nd March 2017 in corroboration with various stakeholders, and those found wanting will face the sanctions as prescribed by the Income Tax Act Chapter 323 of the Laws of Zambia.

The statement further said that income from letting of property is liable to withholding tax at the rate of 10% of gross rentals, adding that the law further requires the tenant to be registered for withholding tax for purposes of accounting for WHT.

“Although it is a primary responsibility of the tenant to withhold tax and remit to the ZRA, landlords may apply to the Commissioner-General for approval to receive gross rentals and account for the WHT on behalf of their tenants subject to the conditions that the Commissioner-General may prescribe, ” rad the statement.

The statement listed the following obligations for the Landloard and Tenant

Landlord’s obligations-

(i) register for income tax and obtain a Taxpayer Identification Number (TPIN);
(ii) provide their TPIN to the tenant;
(iii) submit a provisional tax return (applicable to taxpayers registered for income tax);
(iv) submit an annual income tax return making full declaration of the rental income and other income received during the year.

Tenant’s obligations–

(i) register for withholding tax and obtain a Taxpayer Identification Number (TPIN);
(ii) submit, to the Commissioner-General, a withholding tax return within 14 days following the month of payment of the rentals;
(iii) deduct and pay the withholding tax amount within 14 days following the month of deduction; and
(iv) give a copy of the receipt in respect of the payment and certificate of deduction to the landlord within 14 days of making the payment.

The statement concluded by saying that registration was free and can be done online or at any the nearest ZRA Office.

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52 COMMENTS

    • This is very good indeed… it is also a double aged sword.

      One is that the Government will have more revenue

      secondly and the most importantly is that, the citizens are being woken up from slumber and docility. Zambians are very well known to be docile unless you touch on their money.

      What this entails is that, should a Zambian hear misappropriation of funds going forward, chances of the ruling party being kicked out is probable reminiscent of the UNIP era.

      This is a very good move indeed. clap clap clap

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    • Some of us Zambians want to develop on the cheap. How do you think countries develop. By borrowing money? no… its through taxes and investments.

      That is why you need to have a say and participate in politics. Am very glad about this tax business… it will bring a docile Zambians to participate in the running of their country.

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    • You don’t own any property in Zambia so you don’t know how this feels like…you will work in that foreign land until you are 80 years…nothing to show for but your fake acent and nice shoes.
      I truly feel sorry for you I don’t know why.

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    • In short that’s how PF lost the next election..it doesn’t matter if muliokela uses the reverse slogan of property tax. He will win…bye PF

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    • @ Dweny Mwanba … I can see you in a foreign land. Does that mean you own no asset. My intelligence tells me I do not know, cause I do not know you? So I cannot judge whether you will grow 80 with nice shoes or not unfortunately.

      However, there are some people who do judge others and that’s a potential problem if ever they become leaders. You cannot run a country on accusations and innuendos. So for me, I won’t judge you, as they say, judge not

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    • 1.1 NSCS You say this is good, my foot. This Kingsley chinkuli chanda guy gets a very fat salary,stays in a fully furnished house, has a personal to holder car entitled to a full tank and all medicals and school expenses for his children fully paid by ZRA. Does he really know how hard it is to survive in this country and now he is targeting even Landlords in Kanyama compund? Is it a curse to be a Zambian?

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    • @MWAKALE… The issue here is that Zambians are being introduced to themselves…

      next time people vote, they should vote wisely and not because chibuku and vintenges have been bought for us.

      Why does this happen? Because Zambia has no functioning communities where issues are discussed. If these functioning communities were in place, people would be sensitised and guided to vote people who can do the job.

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  1. We are paying too many taxes in Zambia please. More than people who even live in developed countries. We work for taxes in this country it’s not right

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    • Pwete 1
      And as though paying too much taxes is not bad enough,your money just goes to feed the fat cats in government.Do you know that ARV’s and other essential medical drugs are funded by donors like Pepfar while the tax you pay goes to buying VX V8 for the likes of people like Kampyongo whose hobby is arresting you for enjoying your freedoms?After eating your taxes[which are not enough for these greedy leaders]they then go to “mwibala”,to completely finish you off through Mukukla deals,corruption you name it.
      And Chanda as you should know even stolen money is supposed to be taxed.Do you even dare to threaten these thieves the way you are threatening us the overburdened citizens?We know you dont,you cant dare..so just shut up and wait to be fired by whoever will replace these…

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    • Nonsense for Lungu to steal the money?? What do you provide for Zambians to claim all these Taxes.? Lazy leaders who think taxes is the only way to raise funds.

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    • ***LATEST***

      CABINET RESHUFFLE:
      FINALLY MUTATI HAS BEEN DROPPED FROM FINANCE, DORA OUT! PRAISE GOD!!!!!

      MR PRESIDENT SIR! WELL DONE! HOWEVER WE STILL NEED KAMPYONGO AND KAIZER TO GO AS WELL!

      SOME OF US ARE ON RECORD FOR CALLING FOR THIS ACTION!!!! GOD IS GREAT!!!!

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    • Get involved in politics …. have your say. Bring suggestions to the table.

      Do not just say no more taxes, participate.

      They say often when you do not have a plan, someone else will make a plan for you. That’s exactly what’s happening

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    • 2.5 NSCS. The citizens do not participate in a hostile environment. Currently anyone with divergent views from the powers that be is a target of intimidation. The govt should create an enabling environment one where citizens are free to air their views without looking over their shoulders.

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  2. If only you chaps can demonstrate the same vigor and enthusiasm you display towards individual citizens when it comes to tax, to all the mines , especially those owned/bought by foreign firms/campanies, then perhaps I would welcome your tax rantings with a smile!!!

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  3. This is when people will realise how its important to us for checks and balances when govt recklessly spends $1million on a mere $200k Scania Fire Truck because when you fail to pay them the throw you in jail.
    Wake up from your docility Zambians!!

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  4. what is the Government doing about mining companies and other foreign investments who inflate costs and don’t declare profits and correct income figures?.
    Is ZRA going to be on them?.

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    • The govt is too weak, too dull to tackle the mines when the copper price goes down or agreements are about to expire they simply threaten to off load workers…. in comes the dull ministers from Lusaka to giving them extensions and more tax parachutes.
      Have you ever heard the Mines Minster speaking? The man is as thick as Roller meal Nshima…very dull like Brian at Transport!!

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  5. Zambians you should’ve seen this coming when the PF kept piling up more debt and floating inflated tenders for firetrucks.

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  6. We need to seriously pursue a person who even boasts that this is business, seriously it is stealing from Zambians! Privatization money was not enough and he keeps stealing from the poor Zambians.

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    • You, how come no one at embassy wants to service you ?? Maybe after that service we will hear less about HH HH HH HH and HH from you….

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    • Just say his name Sharon you will feel better tonite…your Kaponya husband has not bought you chocolates and roses!!

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    • Sharon come victor is a stalker obsessed with Tonga bulls…..and HH in particular…even a kaponya boyfriend will notice this obsession

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  7. Yes yes we told you PF are an entity coded to spend borrowed money only…..they have no capacity to create wealth for the nation.

    Now they cannot borrow , they will not work and their only sources if income is to sell state assets and to tax tax and tax Zambians some more ….

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    • ZRA must improve on efficiency. It is taking more than one year for them to process an application for a TPIN.

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  8. What happened to PF lower taxes kanshii nomba ni higher taxes on rentals, markets, TPIN, skills levy, tollgate fees water bills are high, Zesco high, fuel nayo yakwela awe sure tizafa

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  9. The mines make a loss so pay no tax. Mineschave overheads and operating costs which they offset against sales or income.
    Landlords must now claim expenses in maintaing their rental properties and depreciation of asset against their income and show a loss and thus have no tax liability.
    How many pipo are you, the government thru the zra, going to displace from one room rentals because the landlord now has remit a portion of the meagre rent tgey are charging a poor person just to have a roof over their head.
    Shame on the pro poor government. This is a double tax, tax on the rental and then when the money is banked bank and zra take their share.

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  10. WHICH OTHER COUNTRY IN THE WORLD COLLECTS VALUE ADDED TAX ON RENTALS? I BELIEVE THAT WHAT LUNGU IS DOING IS ILLEGAL BECAUSE A PERSON WHO EARNS ABOUT K1500 (£130) PER MONTH FROM RENTALS SHOULD NOT PAY TAX. SO WHY DO YOU WANT TO TAX ALL THE MONEY EARNED FROM RENTALS REGARDLESS OF THE AMOUNT?
    PLEASE TELL US HOW MUCH HAS BEEN COLLECTED FROM THE TOLL GATES AND HOW IT HAS BEEN USED?

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  11. the mutati legacy tax and more tax i’ m sure its part of the hand over notes to the former Barclay’s bank boss,we are taxed direct ,indirect .yet the salaries year in year out are the same no increments .e.g the tolls have became the second copper in the country yet the roads are pathetic .now landlords mmmm that mean rentals will go up on the same salary.

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  12. Hello he should wake up why can’t he tax the street vendors and the rest of the damn kantembas I mean seriously all these years the vendors have had a tax haven do justice now and give the Land lords a tax haven for 5 years my friend wake up you wish to steal from the honest people who are paying yet the street vendors have had it free so obvious so disgusting !!! Who pays the damn rates ??? Your vendors ???

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  13. Before long the women working the streets to put food on the table will betaxed. Soon if our women deny sex they will impose withholding tax…. the pro poor party ,,we didnt vote for this!

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  14. This is what Nawakwi was saying on Monday night on Prime TV. This government has failed to pay back the Eurobond. Now they want to collect unnecessary taxes from poor landlords in order to pay back the debts. Oh my God! Have mercy on us!

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    • Nawakwi cannot pretend not to know about this tax because it’s in our laws. OK even me am not happy but what can you do.

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  15. This government is really chocking us the poor people of Zambia. They want to get even the little that is left for us. We were removed from the streets I was left with no other option but to move out of my house and put it on rent because children had to go to school, they have again come ati tax on rentals. Kanshi where are we going we are being taxes everywhere. Please bakateka think of the poor Zambians.

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  16. Its near impossible to register on line. Then when you go to ZRA they behave like you owe them…either they are on the phone, or on tea break and after that off to the gents…then they come back with a long face and ask what it was you ‘want’ they then tell they have run out of forms come next week…..so don’t insult us by saying register..in the same way you will be vigilant to check properties please try mobile registration go door to door if need be and in the process don’t forget houses in the suburbs…where one landlord leases out six rooms and pays nothing to you….wake up

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    • That what puts off people. You are treated like a piece of sh1t even by office orderlies at ZRA and yet you’re capable of paying him a better salary than what ZRA pays him.

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  17. What about Zambian diplomats including past people who were sent abroad who have property they bought using stolen money? What is ZRA doing about these matters? Some people stole a lot of money while sending their children to school abroad and they need to be questioned. Kambwili is one of them including Nedson Nzowa who has homes in Canada. He and his children have registered themselves as refugees to the Canadian government claiming they will be prosecuted upon returning to Zambia. All one has to do is confirm with Immigration Canada. He is living a life in Zambia and Canada through false pretense. Zambia has crooked people who’s sole purpose is to commit crime and fraud. He’s a big shot living a very comfortable lifestyle.

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  18. Its true,try and broaden your tax base by encompassing utuntemba and the likes,with houses,we landlords always quarrel with defaulting tenants,meaning this will soon trickle down to us,now quarreling with z.r.a.for defaulting on witholding tax payments(domino effect).

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  19. Comment: its not ok for ZRA failling to correctly deal with mine tax and start pursuing poor zambians in kanyama pls let’s know how these mine owners are beeing taxed and above all can we have pls the information bill go through parliament so that we can have access to our money by knowing how its beeing used- its not good to get peoples money and never show them or disclose how their money is being used

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  20. I paid tax all my working life. I retired and got pentioned off. I invested my retirement benefit on building a house and put it on rent for survival. Now I should tell my tenant to deduct 10% from my rental income! meanwhile, the tenancy agreement I have with my tenant says that what he pays to me is net of tax. Therefore, the responsibility of paying withholding tax is with the tenant, who may not be ready to pay that money because the system is not compelling. It is not my responsibility as landlord to ask the tenant every now and then if he has paid the withholding tax to ZRA.
    I have read a statement from ZRA which says it becomes the responsibility of the landlord to pay the withholding tax if the tenant is exempted from paying withholding tax, including such entities as diplomats,…

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