Tax Services

 

 

All businesses, including sole traders, companies, partnerships, and cooperatives who want to venture into any business in Zimbabwe are required to register with The Zimbabwe Revenue Authority as taxpayers, providing the following documentation when doing so.

 

  • Copies of company registration documents
  • Photocopies of Identification documents for at least 2 of the directors (passports for foreigners; national identity documents for locals)
  • Proof of Address for at least 2 directors in the form of a recognized utility bill (water, telephone, or electricity)
  • Stamped copy of the company's corporate bank statement;
  • Letter appointing the company's public officer who should be a director in the company and signatory to the company's bank account;
  • Stamped personal bank statement for a locally held account of the director who will act as the company's public officer;

 

Once the registration is successful, your company will be issued with a Business Partner Number (your business' Tax Identification Number) along with your ITF263 trading Tax Clearance Certificate. Contact Us now and we will handle the entirety of this process on your before while you focus on the day to day needs of your venture. In addition, you will be registered for the following tax heads.


  • Income Tax (Compulsory)
  • PAYE (Optional)
  • VAT (for Legible Businesses)

 

These are discussed below:


 

Income Tax

 

All businesses, including sole traders, companies, partnerships, and cooperatives, are required to remit Provisional Income Tax on dates specified by the revenue authority. Referred to as Quarterly Payment Dates (QPD), the tax returns (ITF12B) along with the associated payments fall due on:


  • 25 March  :  10%
  • 25 June    :  25%
  • 25 Sept    :  30%
  • 25 Dec      :  35% 


Using your financial projections for the twelve months and hedging these against the actual performance from the beginning of the year to the respective QPD, you are to estimate your projected profit (or loss) for the year and, based on these figures, calculate the tax payable. As a result, your annual estimated tax due is revised quarterly to give a truer representation of what you are most likely to owe in the period. Thereafter, depending on the quarter, you are to remit the specified percentage of the same along with the corresponding tax return, these as indicated above.

 

We can save you the headache of having to do all of the above by maintaining your books of accounts in order and, in so doing, being always ready and prepared to submit the requisite tax return and corresponding proof of payment on or before the due date at all times. As a result, you will never have any hassles with the tax man while your business will always be compliant and eligible for lucrative contracts and tenders. Contact Us now and we will prepare a free compliance calendar for your business and show you how we can best work together to keep your business compliant with its income tax obligations.

 

 

 

Pay As You Earn

 

Once you become an employer, you are required to deduct and remit PAYE from your employees' salaries. The tax is calculated on a sliding scale basis, with lowest income earners being taxed 20% before deductions and the highest 40%. Proof of Payment along with the requisite tax return should be submitted to ZIMRA within ten days of the end of each month to avoid being penalised by the revenue authority.


 

In addition to this, you are also required to submit the ITF16 return within 30 days after the end of each year, detailing the annual earnings, deductions, credits, and PAYE for each employee. Both tax returns should be submitted on time, regardless of whether you have anything to declare or not. For details on the current PAYE taxation levels, please Contact Us or visit https://www.zimra.co.zw/domestic-taxes/tax-tables.


 

We help your business to remain compliant with the tax authorities by keeping your payroll up to date, sending you timely reminders prior to the deadlines, and submitting the returns on time to prevent your account from being penalised. Contact our Tax Department now for additional information on how we can help you keep the tax man at bay.

 

 

Value Added Tax


 

If your income exceeds ZWL$1,000,000 each year, you will also be required to register for VAT. Contact Us for assistance with the application process, for which we will require the following documentation:

 

  • Copies of sales invoices;
  • Sales records;
  • 12 month sales projections;
  • Stamped copy of the company's corporate bank statement;
  • Justification (for a company that has not been trading, this serves to justify your registration for VAT and may be in the form of a sales contract to the value of ZW$1,000,000 or above, or an application letter detailing why you need the registration)
  • Letter appointing the company's public officer who should be a director in the company and signatory to the company's bank account;
 

In addition to the above, your business should have a fixed place of abode where ZIMRA officials can visit to carry out inspections once the application is processed. If everything is in order, the application will be processed within 14 days following which your business will be issued with a VAT Number.

 

At this stage, you are required to purchase a fiscalisation device, charge VAT for all sales, and remit the tax to ZIMRA along with the corresponding tax return on or before the 25th of each subsequent month. Contact Us for assistance with compliance in this respect and we will help you determine your VAT obligations for each month, keep accurate records of all of your transactions as required by the authorities, send you timely reminders and forward the returns and payments when these fall due, and maintain your account in good order at all times.

 

Other

In the event that you registered with ZIMRA some time back and have outstanding issues with the revenue authority, we also help with cleaning up your account and resolving any disputes, as well as representing you in tax audits.