Unit VI. Zambia: zra to launch e-Customs payment system

The Zambia Revenue Authority (ZRA) will this Wednesday launch an improved revenue collection mechanism called the Customs E-payment system.

According to a statement made available to Qfm this morning by ZRA Corporate Communications Division, the launch of the Customs E-payment system is aimed at improving its systems for information processing and revenue collection for the benefit of all stakeholders.

The Communications division has stated the move will ease to the delays that are experienced in payment of import duties and taxes.

The Customs e-payment mechanism will be officially launched with Access Bank Zambia Limited will have benefits such as elimination of queues for customs payment, a 24/7 payment platform and will also allow importers to pay via internet from anywhere.

ZRA has expressed hope that the new system will extend to domestic taxes encompassing e-filing of returns and e-payment of domestic taxes.

The revenue authority has called on the public to visit their banks or the ZRA for more information on the new system.

Payment of an annuity to a non-resident

If you are not resident in the United Kingdom (UK) you are normally taxable on sources of UK income. This means tax should be deducted from your annuity.

At the present time retirement annuities are either paid to pensioners with no tax taken off, or with tax taken off at the basic rate of 22%. Providers can pay the annuity in full to a non resident but only if the pensioner has either:

completed a form AF confirming that they are not liable to pay any tax on their total UK income

made a claim to relief from UK tax under a double taxation agreement which the UK has with the country in which they are now resident.

You can claim to have your annuity paid without tax deducted if you are not liable to pay tax on your total UK income. You can do this using Form AF if you meet all of the following conditions:

you are not resident in the UK

you are entitled to claim UK personal tax allowances

your total UK income is less than your UK personal tax allowances.

Double taxation relief

If you cannot claim on Form AF you may still be able to have your annuity paid without tax taken off if you are now living in a country with which the UK has a double taxation agreement and that agreement gives relief from UK tax on annuities.

Life Offices' Newsletter (PDF 123K)

This newsletter is to remind Life Offices of the procedures for a non-resident individual to have their Schedule D annuity paid without deduction of tax.

If you are not sure about your UK residence status or if you need advice about filling in form AF, or a double taxation form, please telephone the HMRC Residency helpline.

Whilst the present arrangement gives the correct result for the majority of pensioners who receive retirement annuities, it does not help those pensioners who are only liable to pay tax on part of their annuity and have claim the excess tax back every year.

As from April 2007 this system will change, and all retirement annuities will be taxed under Pay As You Earn, just like a personal or works pension. This will mean that it will be easier to work out how much tax, if any, you should pay on your annuity.

Once we have found out some straightforward information about every pensioner, we can work out the tax code number that will enable the Provider to deduct just the right amount of tax from every payment.

For non-residents who have made claims under a double taxation agreement there should be no change. The existing exemption authority will carry over to the new system.