ZRA clarifies rental income law

Zambia Revenue Authority (ZRA) Commissioner General Berlin Msiska has clarified that withholding tax on rental income is not a new law as it was introduced in the 1970s.

In a statement released in Lusaka on Tuesday, May 26, 2015 by the ZRA corporate communications unit,  Msiska said the April 28 communication on withholding tax on rental income since April 28 seems to have been misunderstood by some members of the public to suggest that Government has introduced a new tax.

“The public is hereby informed that as part of our efforts to directly reach out, provide educational information to our stakeholders and broaden the tax base, we have enhanced the channels of communication to include short messages service (SMS) and other electronic platforms,” said Msiska.

The Commissioner General explained that withholding tax is also applicable on interest, commissions, dividends, management and consultancy fees, among others.

He said effective January 1, this year, the rate of withholding tax on rental income was reduced from 15 to 10 percent.