Government has collected K124 .9 Million revenue in form of withholding tax on rental income on commercial properties country wide from January to June 2018, Finance Minister Margaret Mwanakatwe has told Parliament.
Responding to a question for oral answer from Nangoma Member of Parliament Boyd Hamusonde who wanted to know how much revenue government collected in form of withholding tax on rental income on commercial properties country wide from from January 2016 to June 2018, Mwanakatwe said that in 2016 and 2017 government collected K 328.3 and K 255.9 Million respectively from commercial properties occupied by commercial entities.
The Minister told the House that the total amount of revenue collected from individual properties occupied by individuals per month was K 10.3 million for January to June 2018 , K 19.9 million in 2017 and K 17.8 million in 2016 .
Mwanakatwe has revealed that the Zambia Revenue Authority (ZRA) as of May 30 ,2018 captured 4, 504 Tax payers who paid withholding tax on rentals in this period of which 2, 531 were companies and 1 ,973 were individuals.
The Minister says in its effort to increase the collection of withholding tax on rented properties, ZRA has engaged a tax agent to facilitate the collection of tax on rental income
She further says the appointed agent will help the commission in identifying and registering more tax payers who are renting out their properties commercially and to residential tenants.
Mwanakatwe has stated that the agent is working on commission basis depending on how many tax payers they will bring on board with the effort complimented by other initiatives such as the youths of third parties data aimed at registering more tax payers.
ZRA introduced the withholding tax (WHT) on rental income for the landlords and tenants.
According to, 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.
According to the Act the Landlord’s obligations are:
(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 are:
(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.