Tax Example: Rent
May 10, 2018
| Non-resident couple's rental income1 | US$1,500 | US$6,000 | US$12,000 | |
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Expenses 3 | 25% | 4,500 | 18,000 | 36,000 |
| = Taxable Income | 13,500 | 54,000 | 108,000 | |
| Income Tax4 | ||||
| Up to ZMW 39,600 | 0% | - | - | - |
| ZMW39,600 - ZMW 49,200 | 25% | 240 | 240 | 240 |
| ZMW49,200 - ZMW 74,400 | 30% | 756 | 756 | 756 |
| Over ZMW 74,400 | 37.50% | 2,273 | 17,460 | 37,710 |
| Annual Income Tax Due | 3,269 | 18,456 | 38,706 | |
| Other Tax | ||||
| Withholding Tax 5 | 10% | 1,800 | 7,200 | 14,400 |
| Tax Due as % of Gross Income | 18.16% | 25.63% | 26.88% | |
Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 USD = 10.00 ZMW
3 Estimated values. Income-generating expenses are deductible when calculating taxable income.
4 Rental income earned by nonresident individuals is taxed at progressive rates.
5 A withholding tax of 10% applies on rental income earned by nonresidents, to be withheld by the tenant. The withholding tax is set against the final income tax liability.
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