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Registration and De-registration
REGISTRATIONS - TPIN, INCOME TAX, PAYE AND VAT

Introduction
The aim of this leaflet is to explain registration procedures for TPIN, INCOME TAX, PAYE and VAT.

TPIN Registration
The TPIN is a pre-requisite to all procedures of tax registration under Domestic Taxes and Customs Divisions. The TPIN was introduced because Zambia Revenue Authority integrated the operations of the former three Divisions (Customs & Excise, Direct Taxes and Value Added Tax) into two divisions, namely Domestic Taxes and Customs in order to simplify tax administration and to consequently reduce on administration costs.

What is a TPIN?
A Taxpayer Identification Number (TPIN) is a unique computer generated number allocated to a taxpayer under any of the following entities:
  • Limited company
  • Partnership
  • Sole trader/proprietor
  • Other

When this number is generated, it is presented for collection as a certificate.

Who registers for TPIN?
  • Companies or Partnership Businesses
  • Individuals
  • Non-Governmental Organizations, Clubs, Associations, Missionary bodies & other similar organizations registered with Registrar of Societies
  • Entities
How to apply for TPIN Registration:
Application is done through a ZRA prescribed form which can be obtained from the ZRA website, Client Services Centres or the nearest ZRA office. When duly completed, the form is then submitted to ZRA with the following copies of documents:

Limited company registered under the companies Act
Required documents:
  • Certificate of incorporation
  • Certificate of share capital
  • Articles of Association

Foreign company registered under the Companies Act
Required documents:
  • Certificate of registration copy

Partnership Firm registered under the Business Names Act
Required documents:
  • Certificate of Registration
  • Statement of Particulars-approved by the Registrar
  • Completed form TPIN 2

Individuals (without registration under any Act)
Required documents:
  • National Registration Card (NRC) copy

Firms registered under the Co-operative Societies Act
Required documents:
  • Certificate of registration copy

NGO, Club, Association, Ministry body, etc
Required documents:
  • Certificate of Registration or Certificate of Exemption from Registrar of societies copy

GRZ Ministries / institutions, foreign Government and agency
Required documents:
  • Documentary evidence to show legal existence in Zambia

Income Tax Registration
Having registered for TPIN, a taxpayer will be required to register for Income Tax. Taxpayers whose turnover is below K800, 000 in a charge year, will register for Turnover Tax.

Those Taxpayers whose turnover is above K800, 000 will register for normal Income Tax. This is applicable to individuals and Limited Companies.

Note:Partnerships, Mining and Consultancy businesses do not fall under Turnover Tax regardless of their turnover being below K800, 000.

Partnerships will register for Income Tax to facilitate for the receipt of Partnership Annual Returns on ITAS at the end of the charge year. Partners will register for Income Tax separately as they will be taxed according to their profit sharing ratios.

It is extremely important for every person in business who registers for TPIN to register for Income Tax because that is where tax is accounted for.

PAYE Registration
The PAYE account is also is issued through a prescribed ZRA application form. PAYE applies to individuals, companies, partnerships, etc. who have employees. Upon registration for PAYE, they will be given a PAYE account, which they will use to remit PAYE deducted from their employees' salaries every month.

VAT REGISTRATION
Like all other Tax registrations, VAT is applied through a prescribed ZRA application form.

Businesses are required by law to apply for VAT registration if they deal in taxable goods and services and their taxable turnover exceeds registration threshold of K800, 000.00 per annum.

The following copies of documents must be attached to the application form:

  • Sketch map of location
  • Latest Bank Statement covering a period of three months
  • Business Plan
  • Certificate of registration or incorporation
  • Evidence of records like cashbook, purchases daybook, sales daybook, invoice books, a set of accounts and confirmed orders / signed contracts for existing businesses.

Businesses whose threshold does not meet the statutory requirement may also register for VAT on voluntary basis.

WHAT TO NOTE UNDER ALL TAX REGISTRATIONS

Application forms are free of charge

The registration process takes a maximum of 3 days

Registration notices are issued for every tax type and certificates issued where applicable

Late registration attracts penalties

Having registered for taxes requires observing all post registration requirements failure to which penalties apply.

For VAT, the effective Date of Registration (EDR) is the date when the business is considered as having started charging VAT.

DEREGISTRATION
For various reasons the taxpayer may opt to de-register for taxes. The taxpayer is required to notify the Commissioner General in writing. The de-registration process should normally start with the registration bodies such as PACRA and Registrar of Society. To complete any deregistration the taxpayer is required to ensure that there are no outstanding tax obligations on that particular account. ZRA may also request an audit before effecting the de-registration process.

The following and any other relevant copies of documents may be required to support the de-registration request:

  • De-registration notice from PACRA or Registrar of Societies or any other legal registration body
  • Death certificates for deceased cases
  • Letter of appointment of Administrator for deceased cases.

For any queries please contact the ZRA National Call Centre on 381111/0971-281111/5972 (all networks) or email advice@zra.org.zm or contact your nearest ZRA Domestic Taxes Office.

       
* All Dates are displayed in dd/mm/yyyy