By CHIPILI MAKASA –
As the December 31, 2017, deadline for Taxpayer Identification Number (TPIN) registration for all account holders approaches, there are still people who do not understand what benefit this requirement would present them.
This year, Government made it mandatory for financial institutions registered under the Banking and Financial Services Act to require all bank account holders to obtain a TPIN from ZRA.
ZRA Corporate Communications Manager Topsy Sikalinda explains what a TPIN is:
“TPIN stands for Taxpayer Identification Number. It is a mandatory unique number that is given to every taxpayer to use when transacting with ZRA and also when opening the bank account of one’s choice,” Mr Sikalinda explained.
He gave an example that to the Government, a person is identified by a National Registration Card (NRC) number, while to NAPSA, a person is identified by a social security number.
He said equally, in the case of ZRA, an individual would be identified by a TPIN and not a name.
For companies, it is mandatory, whether the business is making profit or not, there should be a form of communication to ZRA through what is called a Tax Return and subsequently a payment.
In order for one to obtain a TPIN, an individual or a business entity or organisation is required to apply electronically or manually by completing a ZRA prescribed tax registration form and attach, for an individual – including foreigners – a copy of one’s Green National Registration Card (NRC) or a passport and details of residence.
Sole business proprietors also need to have a Certificate of Registration (of the business), an NRC or passport and a statement of particulars approved by the registrar of companies.
Non-Governmental Organisations (NGOs), clubs, associations, ministerial bodies and many others need to have a Certificate of Registration, a copy of the constitution and a sketch map.
For limited companies, a Certificate of Incorporation, Certificate of Share Capital, statement for directors approved by the registrar, Articles of Association and a sketch map for the physical location of the business premises.
Partnership firms haven’t been left out.
They too need to have a Certificate of Registration, Statement of Particulars approved by the registrar and a sketch map for the physical location of the business premises.
Each individual partner is required to have a valid TPIN and Income Tax account.
But many bank account holders have wondered what benefit there is for them to acquired the TPIN registration.
According to First National Bank (FNB) Brand and Communications Specialist Luke Njovu, the TPIN provides a number of benefits for an individual or a company.
“First and foremost, a TPIN allows individuals and companies to engage in commerce, so without a TPIN, it becomes very difficult to do business,” Mr Njovu said.
He indicated that if one is in the formal sector, or any other business, one would be asked one ZRA registration or tax payer compliance certificate and, without a TPIN, one cannot have such documents.
He said, “If you are an individual and you want to start your own business or you have other sources of income, you are obliged to pay tax on additional income and whatever income you have.
“So a TPIN facilitates that, and this is the biggest advantage that one would have,” he said.
He said the TPIN allows individuals and companies to do electronic tax returns.
Hence, one does not need to go to ZRA to do tax returns once one has the TPIN.
It means one is registered on the online platform and one can do one’s tax returns from the comfort of one’s home.
The purpose of the TPIN is to make sure tax payer compliance levels increase and the TPIN makes it easy for ZRA to identify individuals that are in receipt of undeclared income, such as foreign dividends and interest currently taxable.
This will actually help the taxpaying consumer more.
With fear gripping some people that ZRA will be monitoring people’s accounts as a way of preventing them from acquiring more wealth, Mr Njovu said, “What clients need to understand is that bank-customer relationship is governed by specific norms and ethics. There is a very strict code of customer confidentiality that applies with customer account.”
Mr Njobvu said there is no way that anybody or any institution can come to a commercial bank and ask for access to a customer’s bank account without any legal requirements.
He said even as at present, if any institutions or organisations is to access a customer’s bank account, there is a legal process that has to be followed and that customers confidentiality code still applies even when TPIN comes into play.
He said as a result, the customers’ bank accounts are very safe.
Registering is free of any charge while the process is easy to follow especially if the registration is done online.—ZANIS.