NOTE: 2022 Update here: 2022 Budget Changes on Rental Income Taxation
14th February 2018
Issued by Topsy Sikalinda
Corporate Communications Manager
Zambia Revenue Authority (ZRA)
ZRA CALLS ON ALL TENANTS AND LANLORDS TO REGISTER FOR WITHHOLDING TAX ON RENTAL INCOME
The Zambia Revenue Authority (ZRA) has given an opportunity to all landlords and tenants that are not registered and are not paying withholding tax on rental income, to register before 1st March, 2018.
Speaking Section 45 of the Income Tax Act Chapter 323 of the Laws of Zambia requires every person within thirty days from first receiving taxable income to give written notice to the Commissioner-General of the Zambia Revenue Authority.
Income from letting of property is liable to withholding tax at the rate of 10% of gross rentals.
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.
The following are obligations of the Landlord and tenants:
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.
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 of February 2018 and the 1st of March and get registered. The general public is hereby informed that the Authority 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 that sanctions as prescribed by the Income Tax Act Chapter 323 of the Laws of Zambia.
Registration is free and can be done online; alternatively, you may visit the nearest ZRA Office to lodge in a manual application.
For further details please call ZRA call centre on 5972 on all networks or email advice@zra.org.zm
