PAYE refund is not refundable – Chanda

ZRA Commissioner General Kingsley Chanda

Zambia Revenue Authority (ZRA) Commissioner General, Kingsley Chanda has clarified that Pay As You Earn (PAYE) refund, mostly mistaken by Zambians as a pension or guaranteed refund of all PAYE paid during one’s employment, is not refundable at all.

In a statement, Mr. Chanda explains that what is refundable is not the tax paid during employment, but the overpayment on the pay as you earn that may have resulted from pay roll errors.

He says the Authority has noted with concern that ZRA offices are confronted with numerous cases of the PAYE Refund with most people thinking it is guaranteed income or refund after separating with their employers.

Mr Chanda says the overpayment of PAYE can be refunded only if there was a genuine mistake in the tax computation by the employer resulting in the employee being overtaxed.

He says this is so even on all other tax types.

He has further explained that a refund can also be made when an employee did not exhaust the tax credit for that particular charge year or when getting a refund of tax deducted on tithe from an approved public benefit organization with a valid certificate.

The ZRA Commissioner General explains that in order for one to be refunded the overpayment, their employer must have been remitting the Pay as You Earn Tax to ZRA.

He says the submission for a refund can only be done after the end of that particular charge year and the claim is only done on income accrued in the final year of employment.