Increasing withholding tax revenue from property: a case of Zambia Revenue Authority.

The aim of the study was to develop a framework of measures that could be employed by ZRA to increase revenue from rented properties especially homes. A qualitative phenomenological study involving ZRA staff and was employed. Data was collected using indepth interviews and future search conference techniques (presentations, discussions at plenary sessions and document review. Data was analysed using modified content analysis
which has an extension of Katherine Charmaz’s Constructivist Grounded Theory. In this sense, the research focused on the meanings attributed by the participants to the research phenomenon and in this case Income tax on rent. The main findings in this study are that the quantum of ITR that is remitted by the taxpayer was based on a self-assessment estimate principle. ZRA did not assess property and not even the lease agreement to ensure that it received a commensurate quantum of ITR. In essence ITR is merely received and accounted for. As from January 2022, the authority changed the ITR liability which initially was placed on the tenant for the landlord. The landlord as an income earner is now mandated to remit the rental tax. There are several barriers that influenced tax compliance including the improbability of conducting audit, low tax knowledge by the citizenry, and the perception of equity and fairness, low citizenry tax education, lack of transparency due to weak news media, cultural factors, such as weak national identity where the citizenry are not committed to pay taxes, tax evasion, tax under declaring, poor record keeping. Following a change in targeting tenants to landlords, the month-on-month income figures for the tax from the time it was changed, self-withholding the tax in 2023 has increased. The study concludes that Income tax on rent is not being paid as expected because there are barriers on the taxpayer’s side and ZRA side. There are a number of viable ways to break ground as far as reaching out to landlords. There is need for designing effective measures.