What is a non – executive director?

  • non-executive directoris a member of a company's board of directors who is not part of the executive team. A non-executive director typically does not engage in the day-to-day management of the organization but is involved in policymaking and planning exercises.


Are Non – executive Directors’ Fees subject to withholding tax?

  • If no other amount constituting remuneration is payable to the director by the corporate body, the non – executive directors’ fees are subject to Withholding Tax on Directors’ fees.

Who withholds tax on the Non – executive Directors’ fees?

  • The tax is deducted and remitted to the Commissioner by the company paying the fees, within ten days of the date of payment.

What is the rate of the Withholding Tax on Non – Executive Directors’ Fees?

  • The director’s fees payable to non-executive directors are subject to 20 percent withholding tax in terms of the 33rd Schedule of the Income Tax Act.

When and how should the withholding tax on non- executive directors’ fees be remitted to ZIMRA?

  • The tax is deducted and remitted to the Commissioner by the company paying the fees, within ten days after the date of payment

Are there any other tax requirements for Non – executive directors’ fees besides the Withholding Tax on directors’ fees?

  • With effect from 1 January 2020, fees accruing to a non-executive director are now subject to a final withholding tax of 20%.
  • This means non-executive directors are no longer required to pay Quarterly Payment Dates (QPD) on the directors’ fees or declare the fees on Income Tax.
  • With effect from 1 January 2020, non – executive directors are no longer required to produce a tax clearance certificate upon receiving fees.
  • In cases where the non-executive director earns or is entitled to an amount equal to ZWL4, 800,000.00 in respect of fees or other business income, in a tax year, they must register for VAT in terms of the VAT Act [Chapter 23.12]. In such a case, the director will be liable to pay and file VAT returns.

This tax treatment for non-executive directors fees applies to what type of companies?

  • The taxation requirements of non-executive directors as highlighted above applies to non – executive directors employed by private, public and statutory corporations.

Penalties and interest for late remittances of tax


  • Taxpayers are encouraged to pay their taxes on time and in full in order to avoid unnecessary penalties and interest, which are levied on latepayments.