Income tax on rent, worked example, in Zambia
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.
Comments
Be the first to comment on this article!
Login or Register to submit a comment!
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.