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For the purpose of calculating the Provisional Tax for each Quarterly Payment Date (QPD), clients are required to estimate the annual tax due and calculate the respective percentage of tax to be paid for each quarter. Currently the percentages are:
10% due 25th March
25% due 25th June
30% due 25th September
35% due 20th December
For example the actual amount due at the quarter must be arrived at after deducting the QPDs already paid from the amount due e.g. say at a 25 June of the year the estimated taxable income is = $2 375 000
Estimated tax payable = ($2 375 000 X 25.75%) = $611 562.50
QPDs due as at 25 June = {35% (10% +25%) of $ 611 562.50} = $214 046.88
The remittance form for Provisional Tax payments –is form ITF 12B which must be completed in respect of each QPD payment.
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The margin of variance should not be more than 10% of the tax payable when calculating the Income Tax due for the year.
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Yes, adjustments can be made every quarter. Any underpayment of QPDs must be corrected as soon as it is realised during the course of the year in order avoid accumulating interest.
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A garnish is used as a last resort in cases where the taxpayer has been uncooperative. A garnish may be placed on the client’s bank accounts as well as with the client’s debtors.
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Application for VAT registration can be done online using the E-services portal. Confirmation of registration (issuance of a VAT number) can only be done after ZIMRA has verified certain information contained in the application.
A fully completed form REV 1 form which can be downloaded from the ZIMRA website (www.zimra.co.zw)
In the case of a company the following documents should be attached:
1. Copy of Certificate of Incorporation;
2. CR14; CR6;
3. Stamped current bank statement;
4. Certified Copy of Memorandum of Association (1st three pages plus the last page)
5. Certified Copy of Articles of Association (1st three pages plus the last page)
6. The following Documents for at least 2 Directors
ü Certified Copy of ID
ü Certified Copies of proof of residence in the form of utility bills or supported with an affidavit if the proof is not in the director’s name.
·7. Letter appointing Public Officer and confirmation that the person has got signing powers to the bank account.
8. For Individuals:
· Stamped current bank statement;
· Copy of ID;
· Copy of proof of residence in the form of utility bills, supported with affidavit if not in the trader’s name.
Upon registration, every registered operator will be issued with a VAT number and advised of the VAT category.