The Zambia Revenue Authority (ZRA) says it has partnered with 33 local councils throughout the country to help with registrations of landlords to ensure that the 10 percent rental income tax is remitted.
ZRA Corporate Communications Manager, Oliver Nzala told ZANIS in an interview at the just opened Zambia International Trade in Ndola yuesterday that previously the law was requesting tenants to withhold 10 percent of their rentals.
“Last year the law was changed to rename withholding tax to rental income tax at the same time to ensure that the tenant is relieved of the duty but make the landlord liable for filling in returns and payment of taxes,” Mr. Nzala said.
Mr. Nzala explained that the councils hold most of the title deeds as they have a database of who has the house and which house is on rent so it is for that reason that the Authority has partnered with the councils to ensure that a correct database is known.
“If you are a landlord and your gross income is K800,000 or below in a year you will be charged four percent every month. However if your annual gross income is K800,000 or above you will be charged about 12.5 percent,” he said.
He stated that what is important is to ensure that landlords declare correctly the number of houses that they have and are on rent.
Mr. Nzala further said a smart Zambia is being built towards a time where each ones source of income is known, which houses are on rent and at the same time landlords are to urged to ensure that in their declaration all the details are correct as ZRA is enhancing its tax Audit systems to ensure that loopholes and revenue leakages are closed.
He noted that it is important for citizens to have a culture of paying correct taxes because after ZRA posted the notice on landlord registration there is information gap as some people are thinking that it is a new tax.
He clarified that the landlord tax is not new as it was introduced five years ago though the Authority has discovered that most people lack knowledge.
ZRA 2022 Budget highlights. 1.1.6 “Reform the rental income tax regime by charging Turnover Tax at the rate of 4 percent on rental income below K800,000 per annum and apply the Income Tax regime for individuals or corporates with rental income above K800,000 per annum.”
This measure is intended to align the treatment of rental income with that of other income sources.
Can we also start taxing those people in the diaspora
While mines are on tax holiday
Even in the western world earning on second homes and taxed. The problem is that upnd will tax you much higher than we would have. Live with it.