1. Zambia Revenue Authority
PRESENTATION TO STUDENTS AT UNILUS By
CHILANGWA STEVEN
&
MUNJELI JACOB
05/09/2014

2. Outline Why outreach Programme ZRA overview Responsibilities
Taxes administered in general
Taxes administered in detail
The End

3. Mission statement for ZRA
“To optimise and sustain revenue collection through integrated, efficient, cost effective and transparent systems, professionally managed to meet the expectations of all stakeholders.”

4. Vision
“To be a world class organisation recognized as a beacon of excellence in revenue administration”

5. OUT REACH PROGRAMME
Zambia Revenue Authority appreciates the need to enlighten and empower current and future taxpayers on the importance and benefits of tax in driving the socio-economic development of our beloved country.

6. OUT REACH PROGRAM
The program as a means of informing and educating the public so as to enhance a culture of voluntary compliance.

7. Objectives outreach program
To enable students appreciate the importance and benefits of tax thereby embracing a taxpaying culture
To enable students, families themselves with registration process of TPIN and taxes
Champion tax compliance whilst advocating against tax evasion
Become tax compliance ambassadors’ thus encouraging family and friends to comply.
Empower the youth as they are the future implementers and beneficiaries.

8. Benefits of Tax compliance
Tax compliance is a state whereby taxpayers conform to their tax liabilities willingly and honestly.
The benefit of tax compliance is the improved collection of taxes which enables the government to provide fundamental services such as education, medical services, improved infrastructure like roads and bridges, rural electrification, youth and women development funds, bursaries, National budgetary expenditure to Zambia’s sovereignty by avoiding overdependence on donor funding who may impose rigid condition.

9. Effects of Tax Evasion
Tax evasion is a situation whereby taxpayers are non-compliant and evade their liabilities.
The heavy burden of financing government programs befalls a few honest and compliant citizens. Reduce pace of development due to limited funding, poor living conditions due to lack of amenities and lack of economic free as donors dictate the country’s progress.

10. What is tax?
Compulsory monetary contribution to the state's revenue, assessed and imposed by a government on the activities, enjoyment, expenditure, income, occupation, privilege, property, etc., of individuals and organizations

11. ZRA MAJOR RESPONSIBILITIES
Properly assess and collect taxes and duties at the right time
Ensure that all funds collected are properly accounted for and banked
Properly enforce other relevant statutory provisions
Provide statistical information on revenue to Government
Give advice to Government on aspects of tax policy

12. Taxes administered in general.
Tax Types Administered
Value Added Tax
Surtax
Customs duty
Excise Duty
Income Tax
Property Transfer Tax
Mineral Royalty
Medical Levy
Collection of Motor Vehicle Registration Fees

13. Taxes administered in general cont.
Under Income Tax are the following taxes:
Company Tax
PAYE
Withholding Tax
Self employed Individual’s Tax
Presumptive Taxes

14. DIRECT TAXES. Company Tax
Taxation on adjusted net company profits. This is at 35% but 10% on farming income and non-traditional exports income and 33% for LUSE listed companies.
For companies engaged in mining operations, the rate is determined by the variable profit tax rate, but the minimum rate is 30%.

15. Direct Taxes cont. Individual Tax
Taxation on net profits of sole traders and partnerships.
First 0%
Next K 25%
Next K2,100 @ 30% Balance
Over 35%

16. PROPERTY TRANSFER TAX
Taxation of proceeds from sale of land, buildings, and shares.
The rate is 10% of selling price.

17. MINERAL ROYALTY
Taxation of mining license holders at 6% for all mining companies.

18. Presumptive Tax Passenger transport:
Charge depends on the number of passengers
Turnover Tax:
Applicable to small businesses whose turnover is below K800,000 p.a
Rate is 3%

19. CUSTOMS SERVICES Customs Duty
Tax levied on all goods imported into the country. Customs duty rates vary from 0%, 5%, 15% and 25% depending on the nature of goods. Duties are based on the CIF (cost, insurance and freight) value.

20. Customs Services cont Excise Duty :
Taxation on a range of selected products whether produced locally or imported. Following items attract excise duty.
Electricity 3%
Domestic Kerosene %
Other light oils %
Petrol 30%
Make-up 20%
Perfumes 20%

21. Excise Duty continued Whiskies 60% Opaque beer KR 0.145 /Lt
Clear beer 40%
Ethyl alcohol (spirits) 60%
Wine 60%
Talk time %

22. Excise Duty Salon Cars/Station Wagons (less than 1500cc) 20%
(1500cc & above) %
Buses (less16 sitting capacity) %
Pick ups/Light Trucks (less than 20 tones) %

23. Surtax Carbon Emission Surtax
Annual charge on emissions from motor vehicles. Rates range between KR50 and KR200 depending on the engine capacity of the motor vehicle

24. Import VAT
This is value added tax charged on all imported goods according to the applicable domestic rate of Standard rate (16%), Zero rate (0%) or exempt.

25. Domestic VAT
Taxation on every value added to a taxable service or product. The tax is borne by the consumer. For VAT purposes, sale or disposal of goods or rendering of services is called supplies.

26. Domestic VAT cont.
Taxable supplies are taxed at either 16% (standard rate) or 0% (zero-rated). Zero-rated supplies include Exports, Energy Saving appliances, Equipment and machinery, medical supplies and school books.
Exempt supplies are items specifically excluded by law from liability to VAT, (i.e., no VAT is charged) even if supplied by a registered business.

27. End of presentation.

28. Questions !!!

29. For more information visit the website: www.zra.org.zm
Or call us on Landline , Airtel , Airtel and CellZ short code 5972
You can also us on
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