As part of Zimbabwe Revenue Authority (ZIMRA) Business Processes Re-engineering, ZIMRA will be introducing  the Tax and Revenue Management System (TaRMS) which will go live on 12 October 2023.   This is  part of the organisation’s focus on simplifying business processes for the convenience of Taxpayers. ZIMRA is key in the national transformation and economic viability of Zimbabwe towards its vision 2030.Hence the need for ZIMRA to change its processes to facilitate ease of doing business.

TaRMS will be the new system for automating Domestic Taxes processes, replacing the current system(SAP TRM). ZIMRA has been facing a series of system challenges in the provision of its services to its Taxpayers through SAP TRM under Domestic Taxes Division.

The following will be some of the benefits of TaRMS:

Taxpayer Registration

  • Elimination of duplicate Business Partner Numbers and Tax Types registrations.
  • On-line validation of Company Registration Numbers(CRN), ID numbers and bank account numbers as TaRMS is integrated with Registrar of Companies, Civil Registry, and Banks.
  • The system can register Public Officer/Representative, Directors and Shareholders.
  • Taxpayer Identification Number (TIN) and Tax Types registration will be automatic for all entities except few cases that require ZIMRA approval.
  • Reduction of manual registration forms
  • Taxpayer can, through Self Service Portal (SSP), save partially completed taxpayer registration application forms or tax return in draft for continuation later on.
  • Taxpayer can update master data through SSP without requirement for human intervention.

Tax Return Management

  • One TIN for both USD and ZWL: In TaRMS, a taxpayer submits one return per tax period and posts liabilities in ZWL and USD. (Convenient for the taxpayer).
  • All returns/claim forms are fully automated except the following which are partially automated:
    • Capital Gains Tax
    • VAT for Development Partners and VAT for Entities/Individuals with Diplomatic Immunity.

Payments Management

  • The system will eliminate the issue of unallocated payments in ZIMRA Bank accounts and avoid creation of Suspense Account.
  • TaRMS will eliminate overpayments and duplicate payments by Taxpayers, since payment is based on the Return submitted.
  • Elimination of tax payments mis-postings (time spent in correcting mis-posted payments will now be eliminated).
  • A single payment can be made to settle several tax obligations, making it cheaper and convenient for the taxpayer.
  • Elimination of exchange rate variations because:
    • Tax liabilities will be only in ZWL and USD.
    • Payments will also in ZWL and USD.
    • TaRMS will have automatic account maintenance for the Taxpayer’s ledger.

 

Refunds Management

  • TaRMS will automatically identify Refunds for processing.
  • Automatic determination of any outstanding liabilities (Returns and Payments).

Debt Management

  • Automatic detection of unpaid liabilities.
  • Automatic aging of liabilities according to set parameters.
  • Automatic account maintenance since a tax liability shown in the return is settled directly from the single account.
  • System automatically calculates interest on a daily basis, update and show the total in the taxpayer ledger.
  • System automatically calculates penalties from the due date and posts to the taxpayer ledger.
  • TaRMS will be able to automatically reverse interest charges and penalty on all adjusted/amended tax types liabilities.
  • System will be able to automatically issue reminders for payments and returns prior to due-date, on due-date, and after due date according to the escalation procedures. (Reminders will not be sent to, taxpayers who are up to date with their payments and returns).
  • Taxpayer can apply for instalment plans online.
  • Based on set criteria, TaRMS can automatically approve some installment plan applications.
  • Automatic cancellation of installment plans upon failure to honour a payment plan.

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