Presumptive Tax

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.

SELF-EMPLOYED PROFESSIONALS PRESUMPTIVE TAX

With effect from 1 January 2021 there was a new insertion on the sectors that pay presumptive tax. This insertion added professionals to the lists of categories subject to presumptive tax. The presumptive tax is paid by self-employed professionals who would not have submitted income tax returns for the previous year of assessment.

Self-employed professional is an individual who earns income, on his or her own account or as a member of a partnership, as:

a)    an architect registered or required to be registered under the Architects Act [Chapter 27:01]; 

b)    an engineer or technician registered or required to be registered under the Engineering Council [Chapter 27:22]; 

c)     a legal practitioner registered or required to be registered under the Legal Practitioners Act [Chapter 27:01]; 

d)    a health practitioner registered or required to be registered under the Health Professions Act [Chapter 27:19]; 

e)    real estate agents registered or required to be registered under the Estate Agents Act [Chapter 27:19];

and does not include any individual in possession of a tax clearance certificate to the effect that he or she has furnished a return under section 37 for the last year of assessment for which such a return is due;

RATES OF PRESUMPTIVE TAX FOR SELF-EMPLOYED PROFESSIONALS

DUE DATES FOR PRESUMPTIVE TAX

The full amount of presumptive tax is mainly due at the end of each quarter. However, operators can still remit on monthly basis. The respective due dates of the various categories are shown below:

Taxpayers on Presumptive Tax are encouraged to pay their taxes on a monthly basis such that by the end of the quarter they would have paid the full amounts of taxes.

RATES OF PRESUMPTIVE TAX

With effect from the year of assessment beginning 1 January 2021 Presumptive tax rates of the various categories are shown below:

NB: Small Scale Miners are subject to presumptive tax at 0%. There is no tax that is charged but they are

required to submit their returns where they declare the values but the tax is zero.

PAYMENT OF PRESUMPTIVE TAX IN FOREIGN CURRENCY

Every person liable for presumptive tax has the option to pay the amount of the tax due in United States dollars at the applicable foreign currency auction rate prevailing on the date of payment.

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

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 be attached to the Zimbabwe Revenue Authority.