Revenue Authority lists tax incentives for companies employing persons living with disabilities

An employer who engages a person living with disability on a full time basis is entitled to an allowance of K2,000, Zambia Revenue Authority (ZRA) has said.

Corporate Communications Manager, Oliver Nzala, explained that such an employer can claim the allowance as a deduction in the income tax return at the end of the year.

Nzala said in a statement issued on Tuesday that this was according to the Income Tax Act.

He further stated that the Act allowed for persons, individuals or organizations that engaged in public benefit activities to apply for the Public Benefit Organization (PBO) status.

This, he said, would allow them to enjoy privileges such as a 15 percent reduction in income tax, if the PBOs are conducting a business to bring in extra income to support the activities of the organization.

“In this case, the PBOs are organisations that assist disabled persons by carrying out activities involving welfare and humanitarian, health care, land, housing, education, and training facilities,” he explained.

He further disclosed that a disabled person registered with the Zambia Agency for Persons with Disabilities (ZAPD) was entitled to a tax credit of K600 each month or K7,200 at the end of each year.

Nzala said the tax credit was deducted from the tax amount due each month.

“This is normally done through payroll. However, where this is not effected, a claim through the tax refund claim can be lodged with ZRA at the end of the charge year,” he said

Nzala also encouraged the pubic to take advantage of the available exemption or zero-rating of Value Added Tax (VAT) on the supply of articles designed for use by persons with disabilities.

He said the articles included wheelchairs, crutches, hearing and vision aids, artificial limbs, and brail material, among others.

“Other tax incentives available for persons living with disabilities included cancellation of duty paid or payable with respect to a modified motor vehicle imported by a registered person with a disability. The entitlement to import a modified motor vehicle by persons living with disabilities can only be granted once in five years.

He said the tax incentives apply to employers of persons living with disabilities as well as the individuals themselves.

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