Withholding tax on rent: Get it right

With effect from May 3, 2011, payers of rent for the use of land and or buildings (tenants) are required to deduct a five percent withholding tax from rental payments (the withholding tax) made to recipients of rent (landlords).


 This tax was brought into force through Income Tax Amendment Act No. 8 of 2011. Despite the fact that this law has been in force for more than three years now, it appears that some tenants are still unaware of the tax. In this article, we will provide some guidance for tenants to help them fully comply with the requirements of the Tax Act regarding the withholding tax.

Editor's Comment
Time to end informal sector fronting

The Francistown Umbrella Informal Sector chairperson, David Mbulawa, has highlighted this growing concern, revealing that many local traders are using their licences to facilitate the entry of foreign goods into the market at a fee.Fronting undermines the very fabric of our local economy. It allows foreign traders to exploit the system designed to benefit Batswana, using local licences to cross borders and sell goods at prices intended for local...

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