ZRA targets landlords
by Staff reporter
The Zambia Revenue Authority (ZRA) has asked real estate property owners to register with the institution and start paying withholding tax for rentals received from tenants.
In a statement released Wednesday, ZRA Commissioner General Kingsley Chanda stated that the period February 14 to March 1 had been reserved for all landlords to register for such tax.
Chanda stated that it was legally mandatory for anyone who received income to pay tax.
He further announced that from March 2, ZRA would commence physical surveys of real property throughout the country.
Chanda stated that those found wanting would face penalties as prescribed by law.
“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, ” he stated.
Chanda listed several obligations required from both landlords and tenants.
“(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,” stated Chanda.
“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 daysfollowing 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.”
