Minister of Finance Margaret Mwanakatwe says the Zambia Revenue Authority (ZRA) has so far collected K10.3 million from individual properties in withholding tax on rental income between January and June this year.
Mwanakatwe was responding to Nangoma Independent member of parliament Boyd Hamusonde during questions for oral answer in Parliament, Wednesday, who asked: “(i) how much revenue government collected in form of withholding tax on rental income on commercial properties countrywide from January, 2016 to June, 2018, year-by-year; (ii) how much revenue in form of tax on rental income on residential properties is collected on average per month; (iii) what the total number of rented commercial and residential properties captured by the Zambia Revenue Authority as of 30th May, 2018, was; and (iv) what measures government is taking to increase the collection of withholding tax on rented properties.”
In response Mwanakatwe, who is also Lusaka Central PF member of parliament, said government collected a total of K124.9 million in revenue from properties occupied by commercial entities for the period January to June, 2018.
She added that the total amount of revenue collected from individual properties was K10.3 million for January to June 2018, whereas, the average number of tax payers that paid withholding tax on rentals in this period was 4,504.
“The total amount of revenue collected from properties occupied by commercial entities was K124.9 million for the period, January to June, 2018; K255.9 million in 2017 and K328.3 million in 2016. The total amount of revenue collected from individual properties occupied by individuals was K10.3 million for January to June, 2018. K19.9 million in 2017 and K17.8 million in 2016. The average number of tax payers that paid withholding tax on rentals in this period was 4,504 of which 2,531 were companies and 1,973 were individuals,” Mwanakatwe narrated.
She further said ZRA had engaged a tax agent to facilitate the collection of tax on rental income.
Mwanakatwe added that the agent, which is currently working on a commission basis, would help in identifying and registering more tax payers who were renting out their properties.
“Zambia Revenue Authority has engaged a tax agent to facilitate the collection of tax on rental income. The appointed agent will help in identifying and registering more tax payers who are renting out their properties; commercial and residential. The agent is working on commission basis depending on how many tax payers they will bring on board. These efforts will also be complemented by other initiatives, such as the use of third-party data aimed at registering more tax payers,” explained Mwanakatwe.