Companies appoint Board Members and pay them fees for the services rendered. The fees earned are taxable income earned which is subject to tax in Zimbabwe.



Any person who earns income for services rendered as a Board Member is required to register for tax purposes. Registration process is completed on line through the ZIMRA e-services platform. The Board Member is registered for Income Tax purposes.


In cases where a Board member earns or is entitled to a total amount of $60 000 or more in respect of fees, in a tax year, the person is required to register for VAT purposes and pay the tax as prescribed in the Value Added Tax Act (23:12).



1.    Income Tax on Business Income

A Board Member is required to estimate taxable income from Board Fees and any other business income then calculate the estimated tax for the year. The tax is payable on the Quarterly Payment Dates as follows:

Quarterly lnstalment

Due Date

Instalment Due

(% of the annual tax payable)


25th March, 2019



25th June, 2019



25th September, 2019



20th December, 2019



 NB: in estimating the tax liability the Board Member must consider the tax Withholding tax that would be deducted by the company in which he/she is a board member.


2.    Income Tax on employment Income (Pay As You Earn)

The definition of remuneration contained in the 13th Schedule includes amounts such as salary, leave pay, allowances, wages, overtime pay, bonus, commission, fees and benefits. Fees payable to or earned by the director are considered part of remuneration and therefore subject to employees’ tax if paid to a director of a company or paid to a chairman or member of any board of a statutory corporation from which the individual also receives other amounts constituting remuneration.

The tax should be deducted sing the PAYE tax tables which are normally availed to employers and obtainable from the Zimbabwe Revenue Authority (ZIMRA). All employers are required to withhold PAYE and remit the amounts so withheld to the Commissioner General of ZIMRA on or before the 10th day of the following month after its deduction.


3.    Withholding tax on Non-Executive Directors’ Fees

Board Fees payable to board members who are executive directors of the company are subject to PAYE. The board fees payable to non-executive directors are subject to 20% withholding tax in terms of the 33rd Schedule of the Income Tax Act.


Non-executive director’s fees means any remuneration of a director paid by the corporate body of which he or she is a director and this includes:

(a) Amounts excluded for the purposes of employees’ tax and not qualifying as remuneration in terms of the 13thSchedule of the Income Tax Act or

(b) Any amounts from which employees’ tax has not been withheld in terms of the 13th Schedule of the Income Tax Act for any reason.


For example, individual B is employed by Company X and is a member of the board of Company Y. If individual B does not receive any other amounts regarded as remuneration from Company Y then the fees payable by the board of Company Y to individual B are subject to withholding tax.

This is a provisional tax withheld pending the submission of an income tax return at the end of the tax year and is credited against the Income Tax due on assessment. Any payer or agent of the payer of fees is required to withhold and remit the tax to ZIMRA within 10 days of payment of the fees.


Director’s fees are however not subject to PAYE if no other amount constituting remuneration is payable to the director by the paying corporate body.


4.    Value Added Tax (VAT) on Board fees payable to Non-executive directors

Board Members that are registered for VAT are required to charge VAT to the companies in which they are Board Members. The VAT must be remitted to ZIMRA and the required returns submitted as well.


C. Submission of Income Tax Returns

All taxpayers other than taxpayers on employment income are required to submit Income Tax returns by the 30th of April of each year for the previous year of assessment.

Board Members are therefore required to prepare their Income Tax Returns and submit. In the return they declared all the board fees earned or accrued, deduct any expenditures and other allowable deductions and determine the tax due. The provisional tax paid and the withholding taxes paid are allowed as credits against the tax determined.


D: Tax treatment applies to public, statutory corporations and private sector companies.

It should be stated that the taxation requirements of directors as highlighted above applies to board members employed by private, public and statutory corporations.



My Taxes, My Duties: Building my Zimbabwe!!



This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority. 


To contact ZIMRA:

WhatsApp line                            : +263 782 729 862

Visit our website                        :  www.

Follow us on Twitter                 :  @Zimra_11

Like us on Facebook                 :

Send us an e-mail                      :  This email address is being protected from spambots. You need JavaScript enabled to view it./This email address is being protected from spambots. You need JavaScript enabled to view it.

Call us (Head Office)                    :   04 –758891/5; 790813; 790814; 781345; 751624; 752731

e-TIP                                           :