Starting a business is an exciting step, but it also comes with responsibilities—one of which is registering for tax. In Zambia, businesses are required to register with the Zambia Revenue Authority (ZRA) to obtain a Taxpayer Identification Number (TPIN). This allows you to comply with tax regulations and ensures your business can operate legally.
In this blog, we’ll guide you through the process of registering for tax with ZRA. We’ll make the steps simple and straightforward, and we’ll highlight the key things you need to know.
1. Why Do You Need to Register for Tax?
Every business in Zambia must be registered with ZRA. Here’s why tax registration is so important:
- Legal Compliance: It’s required by law for all businesses in Zambia to be registered with ZRA and to have a TPIN.
- Access to Opportunities: A TPIN is required for you to bid for contracts, open a business bank account, and obtain licenses.
- Paying Taxes: You’ll need to register for tax to file your taxes with ZRA, whether it’s income tax, VAT, or turnover tax.
Without registering, you could face penalties, which could hurt your business and reputation.
2. Steps to Register for Tax with ZRA
Here’s how you can register your business for tax in Zambia:
Step 1: Gather the Required Documents
Before starting the registration process, you’ll need to have some documents ready. These documents will help ZRA verify your business and its operations. You will need:
- Certificate of Incorporation (if your business is a registered company)
- Business Name Registration certificate (for sole proprietors or partnerships)
- National Registration Cards (NRCs) or passports for the directors or business owners
- Proof of the company’s physical address (e.g., utility bills)
Having these documents ready will make the process smoother.
Step 2: Visit the ZRA e-Services Portal
The easiest way to register for tax is online through the ZRA e-Services Portal. You can access this portal on the ZRA website at www.zra.org.zm. Once you’re on the website, click on the “e-Services” tab to begin the registration process.
Step 3: Create an e-Services Account
If you’re a new user, you’ll need to create an account. To do this, click on “New Taxpayer Registration” and fill out your details. You’ll be asked for your personal information, business details, and contact information.
You’ll also need to create a username and password, which you will use to log in to the portal in the future. Once you’ve filled in your details, click “Submit.”
Step 4: Submit Your Application
After creating your account, you’ll be directed to the Taxpayer Registration form. This form requires information about your business:
- Type of Business: Whether your business is a sole proprietorship, partnership, or company.
- Business Activities: What products or services your business offers.
- Physical and Postal Address: Where your business is located.
- Director/Owner Information: Details of the business owners or directors.
You’ll also be asked to upload scanned copies of the documents you gathered in Step 1.
Once you’ve completed the form, review it to ensure everything is correct. Afterward, submit your application for processing.
Step 5: Receive Your TPIN
After submitting your application, ZRA will review it. If everything is in order, ZRA will issue your business with a Taxpayer Identification Number (TPIN). The TPIN is a unique number that identifies your business for tax purposes.
You’ll receive your TPIN via email, and it will also be available in your ZRA e-Services account.
3. What to Do After Registering for Tax
Once you’ve registered and received your TPIN, there are a few more steps you need to take to remain compliant with ZRA:
- Register for VAT (if your business is eligible): If your business has an annual turnover of over K800,000, you’re required to register for Value Added Tax (VAT). You can do this through the ZRA e-Services Portal.
- File Your Taxes on Time: Whether you’re required to pay income tax, VAT, or turnover tax, it’s important to file your tax returns on time to avoid penalties. ZRA offers an e-filing system to make filing easy and convenient.
- Keep Accurate Records: Ensure you maintain accurate financial records and receipts, as these will be needed when filing your taxes.
4. Additional Information: Shareholder and Company Tax
If your company has shareholders, they are required to be registered with ZRA as well. This helps the ZRA track ownership and ensure that taxes related to dividends or shareholder distributions are properly filed.
Also, if your business hires employees, you’ll need to register for PAYE (Pay-As-You-Earn). This allows you to deduct income tax from your employees’ salaries and remit it to ZRA.
Conclusion
Registering for tax with ZRA is a vital step for any business in Zambia. It’s important for compliance, accessing business opportunities, and building your business’s credibility. The process is straightforward, and with ZRA’s e-Services Portal, you can complete the registration online. After registering, be sure to stay up-to-date with your tax filings to avoid penalties.
In upcoming blogs, we’ll guide you through how to file taxes online with ZRA and explore how to register for VAT.