In Zambia, the law requires that the vendor (seller) pays property transfer tax. PTT is payable with 14 days from the date of assessment of the realizable value. To know more, this article covers all about Who Pays Property Transfer Tax in Zambia.
The realizable value is assessed before property can be transferred based on declaration from the vendor in the PTT provisional return.
The PTT provisional return form is available from the ZRA tax offices or ZRA web portal. The vendor is required to fill in the PTT return and provide additional documents to the ZRA.
- The Tax Payer Identification Number (TPIN) for the seller
- The Contract of sale (between the seller and the buyer)
- State consent to assign (obtained from the Ministry of Lands or City / Municipal Council)
- The Identity Cards / National Registration Card (NRC) for both the seller and the buyer
- Certificate of Incorporation in the case of a company
- Order of Appointment of Administrator in the case of transfer of deceased persons estates
- Power of Attorney for vendor domiciled outside of Zambia if needed
- A valuation report for property in cases where property value exceeds ZMW500,000.00
- The Shareholders’ Board Resolutions authorizing the sale (this applies to Companies only)
The following are some of the current required documents in the Who Pays Property Transfer Tax in Zambia process;
Once these are lodged and PTT is paid in full, the ZRA then issues a tax clearance certificate and the tax payment receipt. These are then lodged by the vendor to the Commissioner of Lands. And that is the process in a simple explanation. Sounds time consuming? Well, luckily property conveyancing can take care of all this for you. Talk to BCA Properties today about property conveyancing and be assured of quality services to keep you reassured through the entire process.