6 PB

The World’s Largest Open Access Agricultural & Applied Economics Digital Library
This document is discoverable and free to researchers across the

globe due to the work of AgEcon Search.
Help ensure our sustainability.

Give to AgEcon Search
AgEcon Search
http://ageconsearch.umn.edu
aesearch@umn.edu
Papers downloaded from AgEcon Search may be used for non-commercial purposes and personal study only.
No other use, including posting to another Internet site, is permitted without permission from the copyright
owner (not AgEcon Search), or as allowed under the provisions of Fair Use, U.S. Copyright Act, Title 17 U.S.C.
e-ISSN : 2657-2664, Vol.4, Issue 3, May, 2021
https://revues.imist.ma/index.php/AJLP-GS/index
https://doi.org/10.48346/IMIST.PRSM/ajlp-gs.v4i3.23468 Category of the manuscript : Articles
Received in: 05 November 2020 Revised in: 17 May 2021 Accepted in: 23 May 2021
EXTENT OF RENTAL INCOME TAX COMPLIANCE BY TAXPAYERS IN ZAMBIA

Case of Residential Properties in Kitwe City
1Anthony Mushinge, 1Bwalya Shilengwe, 1Jeff Kanyense, 1Chota M. Mwenya

1Copperbelt University, ABSTRACT
anthonymushinge@yahoo.com, Context and background
Kitwe, Zambia Government mainly raises domestic revenue through taxation such as income tax,
1Copperbelt University, value added tax and customs and excise duty. Residential rental income tax is a
shilengwebwalya@gmail.com, component of income tax. There are low rental income tax collections in Zambia
Kitwe, Zambia caused by among other things low taxpayers’ compliance.
1Copperbelt University, Goal and Objectives:
jkanyense@gmail.com, Kitwe, This paper aims at establishing the extent of residential rental income tax
Zambia compliance among taxpayers and investigating the factors which impede
1Copperbelt University, residential rental income tax compliance among taxpayers in Zambia.
chota.mimba@gmail.com, Methodology:
Kitwe, Zambia The research was both qualitative and quantitative in nature and adopted a case
study strategy, where residential properties in Kitwe city in Copperbelt Province
were studied. Both primary and secondary data were collected. Primary data was
collected from 6 respondents (1 employee from Zambia Revenue Authority; 1
employee from Zambia Revenue Authority rental income tax collection Agent; and
4 employees from 4 real estate management firms). Semi-structured interviews
were used to collect information from the foregoing respondents. Further,
information was collected from 140 tenants and 128 landlords. Questionnaires were
used to collect information from the aforementioned respondents.
Results:
The research findings showed that there is low rental income tax compliance among
taxpayers. Low taxpayers’ compliance is caused by limited taxpayers’ awareness on
some aspects of rental income tax issues such as deadlines and modes of payments,
tax officials not having the right attitude, the Zambia Revenue Authority website not
being easy to navigate and use, high tax rate, erratic deregistration of taxpayers, and
lack of a fair tax system. In view of the foregoing, the study recommends that in order
to improve rental income tax compliance by taxpayers, there is need to: provide
information to taxpayers on rental income tax, conduct training for tax officials,
simplify Zambia Revenue Authority website, lower the rate for rental income tax,
revert to landlords paying tax, and encourage fairness of the tax system.
Keywords:
Kitwe, Rental Income, Residential Property, Tax Compliance, Taxpayer, Zambia
African Journal onLand Policy and Geospatial Sciences ISSN:2657-2664, Vol. 4 No. 3 (May 2021)
354
AJLP&GS, Online ISSN: 2657-2664, Vol.4. Issue 3, https://doi.org/10.48346/IMIST.PRSM/ajlp-gs.v4i3.23468
1. INTRODUCTION
Many governments’ in the world need sustainable funding for social programmes and infrastructure
development to promote socio-economic development (Gambetta et al., 2018). Social programmes
and infrastructure development include medical care, social welfare, education, roads and so on. One
of the ways governments raise revenue to undertake social programmes and infrastructure
development is taxation. Taxation remains the main source of government revenue in both
developed and developing economies (Burgess and Stern, 1993; Thananga et al., 2013). Moreover, it
(taxation) provides an important avenue for financial independence of developing nations from
external assistance (OECD, 2009). Governments’ effective revenue collection from taxes depends on
taxpayers’ compliance with tax laws (Lucinde, 2017). On the other hand, revenue collection by
governments’ is adversely affected by non-compliance with tax laws by taxpayers. The degree of non-
compliance is measured by what is called tax gap (Lucinde, 2017). This represents the difference
between actual revenue collected and the amount that would have been collected if there was 100%
compliance (Lucinde, 2017).
In Zambia, the Government mainly raises domestic revenue through taxation such as income tax,
value added tax and customs and excise duty (KPMG, 2019). Rental income tax is part of income tax.
According to Muleya et al., (2018), there is low rental income tax collections. For example, the total
collections from the rental income tax reduced to K291 million in 2015 from K472 million in 2014
(Muleya et al., 2018). The collection further reduced to K282 million in 2016, and by October 2017
only K215 million had been collected from this tax (Muleya et al., 2018). According to Mulenga (2014)
and World Bank (2016), collection of rental income tax is adversely affected by among other things
low taxpayers’ compliance. Low taxpayers’ compliance is a challenge in Zambia which adversely
affects government’s domestic revenue collection (Mulenga, 2014). It is from this background that
this paper evaluates the extent of rental income tax compliance by taxpayers’ in Zambia focusing on
residential properties in Kitwe city. In so doing, this study answered three interrelated questions.
Firstly, what is the extent of residential rental income tax compliance among taxpayers? Secondly,
what factors impede residential rental income tax compliance among taxpayers? Thirdly, how can
residential rental income tax compliance be improved?
2. RENTAL INCOME TAX AND TAX COMPLIANCE
2.1 Understanding Rental Income Tax
Income earned from immovable property such as residential property is taxed and the tax is known
as rental income tax or withholding tax. Rental income tax is tax collected at source from some
payments like rent for occupying residential property. Some of the residential properties on the
market have a separation of ownership and occupation. In many instances, properties are occupied
under a contract whereby the occupier (termed as a tenant) agrees to pay the owner (termed as a
landlord) a sum of money, termed as rent, in return for the right to occupy and use the premises
(Munshifwa, 2011). There is no direct return to the taxpayer for what he or she pays, though public
in general derives a common benefit (Mohammed Ali, 2005). Thus, rental income tax is a mandatory
distribution collected by the government to meet the expenses of various public functions such as
African Journal onLand Policy and Geospatial Sciences ISSN:2657-2664, Vol. 4 No. 3 (May 2021)
355
building schools, hospitals and road infrastructure (Mohammed Ali, 2005). Failure to pay tax or
evasion of or resistance to collection is punishable by law (Raskolnikov, 2006). Characteristics of
rental income tax include but not restricted to tax is compulsory payment, tax is a payment to the
Government by the people, the aim of tax collection is public welfare, the benefit received is not
directly the return of tax, the persons pay taxes, and tax is a legal provision (Mohammed Ali, 2005).
2.2 Tax Compliance: what it is
Tax compliance is defined as the ability and willingness of taxpayers to comply with tax laws, declare
the correct income in each year and pay the right amount of taxes on time (Singh, 2003). Tax
compliance can be categorised into two forms namely judicious and administrative compliance.
Judicious compliance means the accuracy in filling the tax return forms while administrative
compliance implies compliance with the applicable tax laws as stipulated in the relevant regulations
(Chow, 2004).
Compliance can be achieved through voluntary willingness of the taxpayers or through enforcement
by relevant authorities (Kirchler and Wahl, 2010). In particular, voluntary implies morality of the
taxpayers to pay tax willingly whereas tax compliance enforcement is through powers conferred on
the relevant authorities to force the taxpayers to pay (Masud et al., 2014). Factors that affect tax
compliance include but not restricted to income levels, tax rate, tax fines and penalties, attitudes
towards tax, perceived fairness of tax system, awareness of taxpayers, transparency and
accountability, and education status of taxpayers (Hai and See, 2011; Bărbuţămişu, 2011; Geremew,
2017).
3. EVOLUTION OF RENTAL INCOME TAX IN ZAMBIA
Rental income tax (also known as withholding tax) was first introduced on interest, management and
consultancy fees, royalties and public entertainment fees in 1971, and was later extended to
dividends, rent, commissions and payments to non–resident contractors (ZRA, 2015). It was
particularly introduced on rental income in 1984 (Muleya et al., 2018). The tax is governed under the
Income Tax Act, Chapter 323 and Section 82A subsection 6 defines rent as “a payment in any form,
including a fine, premium or any like amount, made as a consideration for the use or occupation of
the right to occupy any real property including personal property directly connected with the use or
occupation of, or the right to use or occupy such real property” (Government of the Republic of
Zambia [GRZ], 1967). Between 1984 and 1995, the rental income tax rate fluctuated between 10%
and 35% (Muleya et al., 2018). From 1996 to 2013, landlords were required to pay 15% of the gross
rental income as rental income tax.
However, many taxpayers complained that the rental income tax rate was too high and implored the
Government to reduce it to a more manageable rate (Jibao, 2016). Therefore, in 2014, the
Government reduced the rental income tax rate from 15% to 10% (ZRA, 2014). The tenant (payer)
is responsible for deducting rental income tax from gross rentals on the date of accrual of any amount
due to the landlord (payee) (ZRA, 2015). The tenant should remit the amount so deducted to the
Zambia Revenue Authority (ZRA, 2015). Zambia Revenue Authority [ZRA] (quasi- independent
institution) has the mandate to collect taxes on behalf of the Government of Zambia. It was
established in 1994.
African Journal on Land Policy and Geospatial Sciences ISSN:2657-2664, Vol. 4 No. 3 (May 2021)
356
4. RESEARCH METHODOLOGY
The research was both qualitative and quantitative in nature and adopted a case study strategy,
where residential properties in Kitwe city in Copperbelt Province were studied. Kitwe City covers a
land area of 777 square kilometres and comprises of a strip of land of about 32-kilometre-wide and
approximately 64-kilometre-long stretching from Mufulira-Ndola Road in the east, to Lufwanyama
River in the west (KCC, 2011). To the south, the city is bounded by the northern tributary of Baluba
River; it follows the Musakashi, Kafue and Mutupa Rivers (KCC, 2011).
The city boasts of the centrality of its location in the Copperbelt province of Zambia, and is
bordered by Kalulushi, Mufulira, Luanshya, and Lufwanyama districts and the city of Ndola (KCC,
2011). Figure 1 shows the location of Kitwe city. Kitwe is the second largest city in terms of
population in Zambia. As at 2010, the city had a population of 522,092 and population density of
672 persons per square kilometre as well as 3.3% annual growth rate (CSO, 2010). Kitwe’s primary
economic activity is mining. Other economic activities in the city include agriculture and
manufacturing. The city of Kitwe was selected for this study because it is one of the cities with an
active residential property rental market in Zambia. This made it easier to collect data on
residential rental income tax compliance by taxpayers.
Figure 1: Map showing Kitwe city (Source: Kitweonline.com)
357
Both primary and secondary data were collected. Primary data was collected from 6 respondents (1
employee from Zambia Revenue Authority; 1 employee from Zambia Revenue Authority rental
income tax collection Agent; and 4 employees from 4 real estate management firms). Semi-structured
interviews were used to collect information from the foregoing respondents.
Further, information was collected from 140 tenants and 128 landlords. Questionnaires were used
to collect information from the aforementioned respondents. Regarding the sample size for tenants
and landlords, the population was unknown and therefore the formula for calculating sample size
when the population is unknown was used. Where the population is unknown, the sample size can
be derived by computing the minimum sample size required for accuracy in estimating proportions
by considering the standard normal deviation set at 95% confidence level (1.96), percentage picking
a response (50% = 0.5) and the confidence interval of 5% (0.05).
The formula is:
n = Z² (p) (1-p) = 1.96² x 0.5 (1-0.5) = 384
C² 0.05²
Where:
Z = standard normal deviation set at 95% confidence level
P = percentage picking a choice or response.
C = confidence interval (also called margin of error).
Out of a sample size of 384, 192 were tenants while another 192 were landlords. In terms of the
response rate, 140 tenants (representing 72.92%) answered the questionnaires while 128 landlords
(representing 66.67%) answered the questionnaires. Data was obtained from tenants and landlords
in order to determine the consistency of empirical data from other respondents, thereby also
enhancing data validation and reliability.
In terms of sampling, the study adopted purposive sampling, simple random sampling, and snowball
sampling techniques. Purposive sampling technique was used to select the 6 stakeholders that were
known beforehand that they had a role to play in rental income tax. Simple random sampling was
used to select the tenants in Riverside and Parklands residential areas in Kitwe city. Random
sampling involved picking every other detached house or flat. Upon reaching a particular detached
house or flat, the researcher could ask if the property was rented or owner occupied. Thus, the
researcher skipped detached houses or flats which were owner occupied and only collected data
from properties which were rented.
Data from landlords was collected using snowball sampling. This involved identifying eight (8)
landlords and each of these landlords gave the researcher the contact details of at least one more
potential landlord. And then these recruited landlords, in turn, provided the contact details of at least
one more potential landlord, and so on, until the required number of respondents had been located.
Snowball sampling was adopted because landlords were hard to find. Fieldwork was conducted
between July and October, 2020.
358
In addition, for secondary data, both published and grey literature was used. Five types of documents
were considered for the review: (1) Income Tax Act, (2) books, (3) theses, (4) peer-reviewed journal
articles, and (5) reports published by the Zambian Government.
5. RESULTS AND DISCUSSION
5.1 Extent of Rental Income Tax Compliance by Taxpayers
The study intended to find out the extent of residential rental income tax compliance among
taxpayers. Thus, respondents from organisations involved in rental income tax collection were asked
to rate rental income tax compliance by residential property landlords in Kitwe city following an
ordinal scale of ‘the level of compliance is low’, ‘the level of compliance is fair’ and ‘the level of
compliance is high’. Research findings showed that compliance among residential rental income
taxpayers is low. According to the tax collection agent, compliance rate among taxpayers in Kitwe
city was estimated at 11% of potential taxpayers. This meant that 89% of would be taxpayers were
non-compliant. Many people occupying rented residential properties do not pay rental income tax
(Interview with Tax Collection Agent, August 2020). It should be noted that the author attempted to
get figures in terms of the potential rental income taxpayers and those paying tax but efforts failed
as only percentages were stated.
5.2 Factors that Impede Rental Income Tax Compliance by Taxpayers
As explained in the foregoing subsection, compliance among residential rental income taxpayers is
low. The question now is why is there low taxpayers’ compliance? The following explains the reasons
for low taxpayers’ compliance.
5.2.1 Limited Taxpayers Awareness on Some Aspects of Rental Income Tax
Research findings showed that awareness was characterised by different aspects. This included
awareness of the obligation to pay tax, awareness of the deadline of payment, awareness on the
calculation of tax and lastly awareness on the modes of payment available for the tax. According to
research findings, the majority of landlords and tenants were aware of their obligation to pay tax and
calculation of the tax. In particular, out of the total of 268 landlords and tenants, 180 (representing
67.16%) were aware of the obligation by law to pay tax on rental income while remaining 88
(representing 32.84%) were unaware of the tax. Similarly, 162 landlords and tenants (representing
60.45%) were aware of the calculation of the tax while the remaining 106 (representing 39.55%)
said they were unaware. However, the majority of landlords and tenants were not aware of deadline
of payment of tax and modes of payment. These are explained in detail in the following subsections:
i. Awareness of Deadline of Payment of Tax
It was evident from findings that the majority of landlords and tenants were unaware of the deadline
for the payment of the rental income tax. Particularly, 58.96% of landlords and tenants (representing
158 respondents) were not aware while 41.04% (representing 110 respondents) were aware of the
deadline. Being compliant means making payments on time. Thus, rental income tax compliance was
adversely affected by the majority of the respondents not being aware of the deadline of paying the
tax.
359
ii. Awareness of Modes of Payment
According to research findings, 78.36% of the landlords and tenants (representing 210 respondents)
were unaware of the modes of payments (i.e. mobile money, bank transfers, cash and cheques)
available for the rental income tax. The remaining 21.64% of the respondents (representing 58
landlords and tenants) were aware of the modes of payment available. For one to make a payment
towards the tax, it requires that they are aware of the modes of payment available. Thus, the majority
of respondents not being aware of the modes of payments adversely affected rental income tax
compliance.
5.2.2 Lack of the Right Attitude among Tax Officials
Research findings showed that 70.15% of the landlords and tenants (representing 188 respondents)
thought that the attitude among tax officials was not right and thus impedes compliance. The
remaining 29.85% of the respondents (representing 80 landlords and tenants) said that the attitude
of the tax officials was right. For example, when taxpayers go into the offices asking for guidance on
how to go about payments (be it calculation, modes of payment and so on), if the taxpayers’ attitude
is not right, it may cause the taxpayer to opt to be non-compliant. If the taxpayer is not satisfied with
the guidance or is put off by the way the tax official is relating with them, they may choose to actually
not pay the tax (Response from a tenant, August 2020). That is why, the attitude of the officials should
be right to encourage compliance (Response from a tenant, August 2020). They need to be as clear
as possible, have the right customer service approach and be as helpful as possible to help the
taxpayers to be compliant.
5.2.3 ZRA Website is not easy to Use and Navigate
According to research findings, 59.70% of landlords and tenants (representing 160 respondents)
thought the ZRA website is not easy to use and navigate. The difficulty in using the website was
frustrating to taxpayers and this adversely affected rental income tax compliance by taxpayers
(Response from a Tenant, August 2020). The system is not friendly to use considering that taxpayers
are of different caliber and levels of education vary from one to the other. On the other hand, 40.30%
of respondents (representing 108 landlords and tenants) found the ZRA system easy to navigate and
use.
5.2.4 High Tax Rate
The tax rate had contradicting views from tenants and landlords but was still qualified as a factor
impeding residential rental income tax compliance among taxpayers in Kitwe city. According to
research findings, 92.86% of tenants (representing 130 tenants) thought the tax rate of 10% was too
high and therefore unaffordable while 7.14% of tenants (representing 10 tenants) though the tax
rate was just fair. On the other hand, 62.50% of landlords (representing 80 landlords) thought the
tax rate was just fair, while 37.50% of landlords (representing 48 landlords) thought the tax rate was
high. This factor was still classified as a factor in this research despite the contradiction between the
tenants and the landlords. The tenants bear the weight of the tax seeing that the rent is set by the
landlord. A landlord is interested in the net rent. Therefore, the tax component of the rental is actually
paid by the tenant. The opinion of the tenant therefore was taken as priority. It is important to note
360
that if the taxpayer deems the tax rate to be high, non-compliance is the result. Tenants may actually
choose to shy away from the tax obligation.
5.2.5 The Erratic Deregistration of Taxpayers for Rental Income tax
Respondents from ZRA and ZRA rental income tax collection agent stated that erratic deregistration
of taxpayers for rental income tax adversely affected residential income tax compliance. The tax
agent for example, came up with their own data base of tenants whom they found to be non-
compliant and had to make sure that they are compliant going forward. Since contact information
was collected during the field work, the tenants were contacted on a monthly basis to ensure that the
tax is paid. However, sometimes, it was discovered that some tenants had vacated the premises (that
is, no longer renting the premises) and therefore records had to be amended.
Respondents from property management firms further stated that there was changing of registration
details each time there was a change of tenant. Tenants move from one residence to another but
landlords rarely change and thus all respondents from the four firms felt that the tax point (that is,
the tenant) was a factor impeding residential rental income tax compliance. From 2014 backwards,
the landlord was the tax point as opposed to 2015 to date where the tenant is now the tax point. It is
important to note that a landlord is easily traceable compared to tenants that move from one place
to another. Making the tenant a tax point has no effect on the landlord who would have collected their
net rent. The landlord does not feel obliged to ensure that the tax is paid as that is not their priority.
Whether the tax is paid or not, does not affect their income. However, if the tax point is the landlord,
the tenant will pay the gross amount due to the landlord who can then remit to ZRA. The landlord
will know they will be held liable for the tax and can easily be traced. Whenever there is a change in
tenants, the landlords are the ones who can provide all details for the current tenants as they know
who is in their property.
5.2.6 Lack of Fairness of the Tax System
Research findings showed that 79.85% of respondents (representing 214 landlords and tenants)
thought that the tax system was not fair while 20.15% of respondents (representing 54 respondents)
thought it was fair. The lack of fairness was attributed to the treatment of taxpayers especially for
those being compliant. Whenever the compliant taxpayers delay to make payment, they will be made
to pay outstanding tax obligations, interest and penalties accrued. This in turn discourages potential
taxpayers to register for the tax and voluntarily comply. Some potential taxpayers may be willing to
register and start paying the tax but may be deterred by the requirement to pay outstanding tax
obligations, interest and penalties accrued (Response from Landlord, October 2020).
6. CONCLUSION AND RECOMMENDATIONS
This study has revealed that rental income tax compliance in the city of Kitwe was low. Low taxpayers’
compliance was caused by a number of factors which include limited awareness on the tax among
taxpayers of some aspects of the tax, lack of the right attitude by tax officials, lack of an easy to
navigate and use website, high tax rate, erratic deregistration of taxpayers for the tax and lack of a
fair tax system.
In view of the foregoing, residential rental income tax compliance among taxpayers can be improved
through: providing taxpayers with information on rental income tax; conducting continuous training
361
for tax officials; simplification of Zambia Revenue Authority website; lowering the tax rate for rental
tax; reverting to landlords paying the tax; and encouraging fairness of the tax system by ZRA
declaring amnesty for a specified period in which taxpayers can be forgiven (i.e. no payment for
outstanding tax liabilities) and aid them start on a clean slate.
7. ACKNOWLEDGMENT
The authors acknowledge the assistance provided by: an official at Zambia Revenue Authority
(Lusaka); an employee at Zambia Revenue Authority rental income tax collection Agent; employees
at real estate management firms; and landlords and tenants in Riverside and Parklands residential
areas in Kitwe city.
8. FUNDING
There was no funding received for this study. Thus, the full cost for the research was covered by the
Authors.
9. THE AUTHORS’ CONTRIBUTIONS
All the authors were involved in secondary and primary data collection as well as preparation of this
paper.
10. REFERENCES
Bărbuţămişu, N. (2011). A review of factors for tax compliance. Annals of “Dunarea de Jos” University
of Galati Fascicle I. Economics and Applied Informatics, ISSN 1584-0409, pp. 69-76.
Burgess, R and Stern, N. (1993). Taxation and development. Journal of Economic Literature, 31 (2),
pp. 762-830.
Chow, C.Y. (2004). Gearing Up for the Self – Assessment Tax Regime for Individuals. Tax National,
2nd Quarter, pp: 20-23.
CSO (2010). 2010 Census of Population and Housing. Lusaka: Central Statistical Office.
Gambetta, N, Azadian, P, Hourcade, V and Reyes, M.E. (2018). The Financing framework for
sustainable development in emerging economies: The Case of Uruguay. Sustainability, 11
(1059), pp.1-24.
Geremew, D. (2017). Factors affecting rental income tax payers compliance with tax system: In case
of Hawassa City Administration, Snnprs, Ethiopia. Research Journal of Finance and Accounting,
8 (7), pp. 35-43.
Government of the Republic of Zambia (1967). The Income Tax Act, Chapter 323 of the Laws of
Zambia. Lusaka: Government Printers.
Hai, O. T., and See, L. M. (2011). Intention of tax non-compliance - examine the gaps. International
Journal of Business and Social Science, 2(7), pp. 79-83.
Jibao, S.S. (2016). Property Taxation, Capital Gains Tax, and Mining Rights Tax in Zambia Current
Performance and Options for Reform. Available at https://www.theigc.org/wp-
content/uploads/2017/02/Jibao-2017-final-report.pdf [cited 01 November 2020].
362
KCC (2011). 2012-2016 Strategic Plan. Kitwe: Kitwe City Council.
Kirchler, E and Wahl, I.(2010). Tax Compliance Inventory: TAX-I Voluntary tax compliance, enforced
tax compliance, tax avoidance, and tax evasion. J Econ Psychol. 31(3), pp. 331–346.
KPMG (2019). 2020 Budget Highlights for Zambia. Available at
https://assets.kpmg/content/dam/kpmg/us/pdf/2019/10/tnf-zambia-2020-budget-oct1-
2019.pdf [cited 01 November 2020].
Lucinde, B.M. (2017). Determinants of Compliance Levels with Residential Income Tax by Property
Owners in Nairobi County. MSc Thesis. School of Business, University of Nairobi.
Masud, A., Alhaji A., and Gambo, E.J. (2014). Tax rate and tax compliance in Africa. European Journal
of Accounting Auditing and Finance Research, 2 (3), pp. 22-30.
Mohammed Ali, S.G. (2005). Tax computation a comparative study of income tax system in Yemen
and India. PhD Thesis, Savitribai Phule Pune University, Pune.
Mulenga, C.M. (2014). An Investigation on the Administration of Withholding Tax on Rental Income
in Zambia: The Case of Kitwe Residential Properties. Unpublished BSc Thesis, Copperbelt
University, Kitwe.
Muleya, F.B, Nalishebo, S, Msoni, M, Mulenga, M, Mwale, E and Shamabobo, Y. (2018). Rental
Taxation: Curbing non-compliance and improving administration. Working Paper No.33. Lusaka:
Zambia Institute for Policy Analysis and Research (ZIPAR) and Zambia Revenue Authority (ZRA).
Munshifwa, E.K. (2011). Essentials of Property Valuation: With Application to Zambia. New Delhi:
Diplomacy Media.
OECD (2009). Money Laundering Awareness Handbook for Tax Examiners and Tax Auditors.
London: Organization for Economic Co-Operation and Development.
Raskolnikov, A. (2006). Crime and Punishment in Taxation: Deceit, Deterrence, and the Self-Adjusting
Penalty. Columbia Law Review, 106 (3), pp.569-642.
Singh, V. (2003). Malaysian Tax Administration, 6th ed. Kuala Lumpur: Longman.
Thananga, A.G., Wanyoike, D.M., and Wagoki, A.J. (2013). Factors affecting compliance on rental
income tax policy by landlords in Nakuru Municipality. Journal of Agriculture and Environmental
Sciences, 2(1), pp. 26-38.
World Bank (2016). Raising Revenue for Economic Recovery. 8th Zambia Economic Brief.
Washington, DC: World Bank.
ZRA (2014). 2014 Budget: Overview of Tax Changes. Lusaka: Zambia Revenue Authority.
ZRA (2015). Withholding Tax: Practice Note No. 2. Lusaka: Zambia Revenue Authority.
11. ADDITIONAL READING
In order to better appreciate the findings of our paper, we recommend additional reading of the
following:
363
Muleya, F.B, Nalishebo, S, Msoni, M, Mulenga, M, Mwale, E and Shamabobo, Y. (2018). Rental Taxation:
Curbing non-compliance and improving administration. Working Paper No.33. Lusaka: Zambia
Institute for Policy Analysis and Research (ZIPAR) and Zambia Revenue Authority (ZRA).
12. KEYTERMS AND DEFINITIONS
Rental income: implies earnings obtained from the letting out of immovable or real estate (Muleya
et al., 2018). The income is usually referred to as rent and is paid by a user of the property (tenant)
to the owner or supplier of the property (landlord) (Muleya et al., 2018).
Rental income tax: is tax collected at source from some payments like rent for occupying residential
property.
Tax compliance: is the ability and willingness of taxpayers to comply with tax laws, declare the
correct income in each year and pay the right amount of taxes on time (Singh, 2003).
364

6 PB

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

6 PB

Uploaded by

Copyright:

Available Formats

The World’s Largest Open Access Agricultural & Applied Economics Digital Library

This document is discoverable and free to researchers across the

Help ensure our sustainability.

EXTENT OF RENTAL INCOME TAX COMPLIANCE BY TAXPAYERS IN ZAMBIA

1Anthony Mushinge, 1Bwalya Shilengwe, 1Jeff Kanyense, 1Chota M. Mwenya

Figure 1: Map showing Kitwe city (Source: Kitweonline.com)

You might also like