Presumptive Tax legislation was introduced to broaden the revenue base in view of the increase in informal business activities. Selected sectors of the economy were targeted to ensure the participation of informal businesses in tax payment in line with experiences of other developing countries.

Details relating to the current rates and due dates of the various categories are shown below.

1.   Transport Operators’ Presumptive Tax

With effect from 1 January 2022 the rates of Presumptive taxes were reviewed as indicated in the tables below.

Category

Description

ZWL 2022

 ( per month)

DUE DATE

 

Omnibuses

 

 

8 to 14 passengers

4,065

By the 20th day after the end of the quarter

15 to 24 passengers

4,875

By the 20th day after the end of the quarter

25 to 36 passengers

6,500

By the 20th day after the end of the quarter

From 37 passengers and above

8,125

By the 20th day after the end of the quarter

Taxi-Cabs

All

4,065

By the 20th day after the end of the quarter

Driving Schools

Class 4 vehicles

48,750

By the 20th day after the end of the quarter

Class 1 and 2 vehicles

65000

By the 20th day after the end of the quarter

 

Goods Vehicles

 

More than 10 tonnes but less than 20 tonnes

48,850

By the 20th day after the end of the quarter

10 tonnes or less but with a combination of truck and trailers of more than 15 but less than 20 tonnes

65,000

By the 20th day after the end of the quarter

More than 20 tonnes

81,250

By the 20th day after the end of the quarter

 

     

With effect from 1 January 2015 ZINARA was appointed as an agent of ZIMRA for the collection of presumptive taxes in respect of transport operators, taxicabs and driving schools.

Transport operators are supposed to have paid the full presumptive tax by the 20th day after the end of each quarter, however it can be paid on a monthly basis. The persons paying the presumptive tax have an option to pay in US$ at the auction rate prevailing on the date of transaction.

 Other Presumptive taxes rates tables.

Category

Description

ZWL 2022 (per month)

DUE DATE

Hair Saloons

 

4,065 per chair

By the 10th day after the end of the quarter

Restaurants and bottle stores

 

16,250

By the 10th day after the end of the quarter

Cottage Industries

 

16,250

By the 10th day after the end of the quarter

Ship, cruiser, boat, houseboat, speedboat, canoe

Not more than 5 passengers

16,250

By the 10th day after the end of the quarter

Of 6 passengers but less than 16 passengers

24,375

By the 10th day after the end of the quarter

Of 16 passengers but less than 26 passengers

32,500

By the 10th day after the end of the quarter

Of 26 passengers but less than 50 passengers

40,625

By the 10th day after the end of the quarter

50 or more passengers

48,750

By the 10th day after the end of the quarter

Fishing rigs

 

16,250

By the 10th day after the end of the quarter

Small scale miners

 

0% on the purchase price of precious metals or precious

stones

By the 10th day after the end of the quarter

Cross border traders

 

10% of VDP

collected at point of entry

Informal traders except Hair Saloons, Restaurants, bottle stores, Cottage

Industries

Rental income 

3,250

           

Within 30 days from the date the amount is recovered

 

     

2. Hairdressing Salon Operators’ Presumptive Tax

Every operator of a hairdressing salon is required to pay Presumptive Tax amounting to ZWL4, 065.00 per chair per month with effect from 1 January 2022

The full amount should have to be paid by the 10th day after the end of the quarter. Amounts not paid by the due date are subject to interest charges.

3.     Informal Traders’ Presumptive Tax

All persons in receipt of rental income from an informal trader in respect of residential accommodation, premises or a place on which trade is carried on are required to recover an additional amount by way of Presumptive Tax of ZWL3,250 per month, on  rental  income with effect from 1 January 2022  and remit it  to ZIMRA This also includes local authorities.

The amount should be remitted within 30 days from the date the amount is recovered. Failure to recover or remit the Presumptive Tax renders the lessor personally liable for the payment of the Presumptive Tax and a penalty of 100% of the amount due. Failure or refusal on the part of the informal trader to pay the Presumptive Tax constitutes a breach of the lease and allows the lessor to terminate the lease without notice.

4.      Small-Scale Miners’ Presumptive Tax

With effect from 1st October 2014 Small Scale Miners Presumptive tax was reduced from 2% of the gross amount payable to 0% and the same rate still apply for 2022, therefore no Presumptive tax will be collected from Small Scale Miners.

5.      Cross-Border Traders’ Presumptive Tax

Cross border traders who import commercial goods into Zimbabwe are required to pay a Presumptive Tax equal to 10% of the value for duty purposes (VDP) of the commercial goods. The only exception is cases where the trader is registered with ZIMRA for Income Tax purposes and is up to date with submission of tax returns and payment of all taxes due.

6.      Operators of Restaurants or bottle-stores

Every operator of a restaurant or bottle store is required to pay Presumptive Tax amounting to ZWL16, 250 per month with effect from 1 January 2022.

The full amount should have to be paid by the 10th day after the end of the quarter. Interest is chargeable on all amounts not paid by the due date.

7.      Cottage Industry Operators

Every person who owns, is in charge of a cottage industry regardless of it being licensed, or not is required to pay Presumptive Tax amounting to ZWL16, 250 per month with effect from 1 January 2022. Cottage industry operators include those in the furniture making or upholstery trade, metal fabrication and any other cottage industry that the Minister may, by notice in a statutory instrument, prescribe.

The full amount should have to be paid by the 10th day after the end of the quarter. Interest is chargeable where the amounts due are not paid by the due date.

8. Commercial Waterborne vessels

Presumptive Tax is charged to operators of commercial waterborne vessels used for the carriage of passengers for profit and fishing rigs. The full amount of presumptive tax shall be remitted by the 10th day after the end of each quarter, however operators can still remit on monthly basis. The rates are shown in the table below with effect from 1 January 2022.

Rates of presumptive tax for self-employed professionals

 

With effect from 1 January 2022 the rates of Presumptive tax for Self-employed professionals

 

 

Self-employed professionals

ZWL per month

 

Architects

406,000

By the 30th day after the end of the quarter

Engineers or Technicians

812,500

By the 30th day after the end of the quarter

Legal Practitioners

812,500

By the 30th day after the end of the quarter

Health practitioners

812,500

By the 30th day after the end of the quarter

Real estate agents

3,001,875

By the 30th day after the end of the quarter