As the cliché goes, “nothing can be said to be certain in this world, except death and taxes,” indeed, taxes often tend to give shivers to any adult living in the modern world. However taxes help government to fund public services like repairing roads, constructing schools, sanitation among others.
There a good number of taxes that people in the country are required to pay, but this particular article will focus on Property Tax.
Thus Property Tax can be understood to be the amount paid by a land owner to the government or the municipal of one’s locality. The property includes all physical real estate property, houses, office building and the property rented to others. Therefore in Zambia owners of houses, shops, office buildings are required to remit tax. Hence the Property Tax amount is based on the area, value, building size etc. It varies based on the mentioned variables. For example Property tax paid by a house owner in Kabwe will differ with tax paid by an owner of a big office building in the central business district in Lusaka. Currently, Property transfer Tax is charged at the rate of 5 percent of the open market value realized from the sale of any land and building and shares issued by a company incorporated in the country.
Another Tax that we should all be aware of especially tenants is Withholding Tax, this in tells that the tenant is responsible for deducting from gross rentals on the date of accrual of any amount due to the landlord. Compliance levels in the past were very low; but the Zambia Revenue Authority has stepped up its efforts to ensure more people comply.
Hence we should ensure that we are all knowledgeable about the different taxes we are expected to pay as citizens of Zambia.