No Tax for Landlords and Tenants on June 30
Zambia Revenue Authority (ZRA) will not pursuing withholding tax on rental income as earlier perceived from the 2018 national budget with the June 30, 2018 deadline for all landlords to register for tax purposes.
Green Party president Peter Sinkamba revealed this following his party’ query to the Finance Minister Margaret Mwanakatwe. This was contained in a letter to the party dated 16th May, 2018.
“According to the Minister, taxable rental income has not yet been agreed upon by Ministry of Finance and concerned stakeholders. In this regard, it is our understanding that ZRA will not pounce on any tenant or landlord who defaults on the deadline,” said president Sinkamba.
Mr Sinkamba applauded this clarification and urged the ZRA not to fix June 30 as the deadline for registration for all tenants.
“In view of this disclosure by the Minister, we urge ZRA to make registration of tenants and landlords as an on-going exercise. The exercise should not make be time-bound because being a tenant or landlord is a dynamic event. A landlord today may be a tenant the following day and vice versa. For this reason, time-bound registration for tenants is rendered an exercise in futility,” reiterated president Sinkamba.
There has not been clarity on how the element of withholding tax on rental for both the landlords and the tenants will be effected, but this may provide that needed clarity.
While the Green Party appreciated that technically the landlords and tenants are not obliged to report their income to ZRA, they urged them to continue and conform to the registration requirement set out by government.
Green Party president Peter Sinkamba revealed this following his party’ query to the Finance Minister Margaret Mwanakatwe. This was contained in a letter to the party dated 16th May, 2018.
“According to the Minister, taxable rental income has not yet been agreed upon by Ministry of Finance and concerned stakeholders. In this regard, it is our understanding that ZRA will not pounce on any tenant or landlord who defaults on the deadline,” said president Sinkamba.
Mr Sinkamba applauded this clarification and urged the ZRA not to fix June 30 as the deadline for registration for all tenants.
“In view of this disclosure by the Minister, we urge ZRA to make registration of tenants and landlords as an on-going exercise. The exercise should not make be time-bound because being a tenant or landlord is a dynamic event. A landlord today may be a tenant the following day and vice versa. For this reason, time-bound registration for tenants is rendered an exercise in futility,” reiterated president Sinkamba.
There has not been clarity on how the element of withholding tax on rental for both the landlords and the tenants will be effected, but this may provide that needed clarity.
While the Green Party appreciated that technically the landlords and tenants are not obliged to report their income to ZRA, they urged them to continue and conform to the registration requirement set out by government.