This is a relationship which exists between persons carrying on a business with a view of making profit. Business means any business, Trade, adventure or concern in the nature of trade, profession or vocation and includes the letting of any property.

Reporting Income
The income generated by the partnership is not assessed in its name. The income distributed to the partners will be added together with income from other sources and taxed in that partner’s name. At the end of the tax year, the partnership is required to complete and submit a partnership tax return together with the partnership accounts. The partner's individual returns will also be required to be submitted at the same time.

If the partnership has a loss, it will be setoff against future partnership profits in hands of the partners. If the loss incurred in any particular year is not setoff within  five years it falls away and can not be carried forward.

Private Trust

Income  generated by the Trust will be added together  with other incomes  from other sources and taxed in the hands of the Trustee, who holds the assets on behalf of the beneficiary.

Public Trust

Taxation of a public Trust is covered under Non Profit Organisations.

Submission of return

Public Trust, see companies return ITA 22 
Private Trust, see individual return

Non-profit organizations are organisations that are formed with an intension not to make profit or gain. Usually they exist to benefit their members or the public at large. They are also known as Public Benefit Organisations. These organisations include, Public trusts, Social and Sporting associations and charitable, religious and educational institutions. The Income Tax Act, 1995, defines these organisations as companies for tax purposes, Therefore taxation treatment of non-profit organisations is the same as taxation treatment of companies except for the following exceptions;

Charitable, Religious, Educational Institutions and Public Trusts

  • Income from these organisations is taxable only if it is business income or disposal gains and has not been applied / utilized for public objectives.
  • The income must have been applied within the accounting period
  • The application period may be extended by the Commissioner General to such a period as allowed by him as a result of a request for an extension by the institutions.
  •  A request is done through an application form for Extension Of Application of Funds.
  • Non business income like donations, offerings,tithes, subscriptions fees etc,  and income applied for public objectives within the accounting period is not liable to tax.

Social and Sporting Associations

•    All income (business or non business) from social
     and sporting associations is liable to tax if not
     applied / utilised for public objectives.
•    The income must have been applied within the
      accounting period
•    The application period may be extended by the
     Commissioner General to such a period as allowed
     by him as a result of a request for an extension
     by the institutions.
•    A request is done through an application form
     for Extension Of Application of Funds. Just like any other company non-profit organisations has to register for tax purposes and file necessary returns.

PAYE is a form of withholding tax whereby an employer is obliged to deduct tax from remuneration paid to his employees in accordance with and in the manner specified in the Fifth Schedule of the Income Tax Act and shall carry out such other obligations as are imposed by that schedule (section 56).

 Remuneration includes:-

  1. Salaries, wages, bonus, allowances;
  2. Commission, pension, lump sum payments;
  3. Commutation of amounts under a contract of employment;
  4. Director’s remuneration and
  5. Non-cash benefits to an employee

Non-cash benefits include the following employer incurred expenses on behalf of the employee:-

  1. School fees
  2. Utilities
  3. Motor vehicles
  4. Housing
  5. Furniture and furnishings
  6. Interest free and concessionary interest loans;
  7. Shares at lower than market values and
  8. Any other benefit in kind

Valuation of such benefits is as prescribed in Part III of Tax Tables and Guidance notes

Employer requirements


The registration process for PAYE is an extension of the registration for income tax.  An employer who has employee(s) must register for PAYE. 

2. Submission of Monthly remittance return. An employer with employees earning employment income above the taxable threshold (P3000 per month) must deduct tax and remit it to BURS. The rate of tax applied depends on the amount of the employee’s income, as outlined in Tax Tables and Guidance notes. The prescribed form used for tax deducted from employee’s remuneration is Monthly remittance return for PAYE (ITW 7A). For payment procedures, see Payments

3. Submission of annual return Every employer is required to submit an annual return within 31 days after the end of the tax year showing

a) Details of the employer  and totals of tax deducted and paid to the Commissioner General in form ITW10(PAYE) - Annual Withholding tax return for PAYE
b) List of employees and all details pertaining to PAYE (ITW 10A),and
c) Copy of tax certificate (ITW8) indicating tax deducted in respect of each employee.

4. Issuance of tax certificate to an employee
All employees whose tax was deducted must be issued with a tax certificate within 31 days after the end of the tax year. Any employee who has not received a certificate within the specified time must apply to the employer for such certificate to be furnished to him/her. If it is not furnished within a further 15 days notification has to be sent to the Commissioner General for further action.

Application for variation on employment income
Variation from tax rates specified in the Act may be done in respect of employment income. Application is made by an employee to increase or decrease tax in a particular tax year as a result of;

a. Change of employment
This will ensure that the correct tax is deducted on income from different employment. An employee must bring a tax certificate from the previous employer to ensure the correct tax is calculated;
b. More than one source of income
Increase tax deducted from employee remuneration to reduce personal  tax liability at the end on the year;

c. Private contribution to an approved superannuation fund 
Such contribution is tax deductible and it will reduce the tax liability of the employee; ord. Starting employment in the middle of the tax year

The prescribed form used is Form ITW5. If approved, the Commissioner General will respond to such application by issuing a Withholding Tax Directive (ITW 4A), instructing the employer how much to deduct from that particular employee.