What is an ITF263?

An ITF 263 is a Tax Clearance Certificate issued by the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA), to a person liable to pay tax, provided that the taxpayer’s tax position is satisfactory.

What is the Purpose of a tax clearance certificate?

Tax clearance certificate enhances business compliance profile as the taxpayer deals with other businesses.

What are the benefits of having a valid Tax Clearance Certificate?

• No 30% Withholding Tax is deducted when payments are made for goods and services supplied.
• No Presumptive Tax will be levied on importations.
• Tax clearance is required when bidding for tenders.
• A Tax Clearance Certificate is a pre-requisite when applying for licenses issued by local authorities.
• Business counterparts have confidence in doing business with compliant taxpayers.

 What is required to obtain a Tax Clearance Certificate?

• Taxpayer should have registered with ZIMRA in terms of Section 42, of the Income Tax Act.
• The taxpayer must be up to date with all statutory returns required to be submitted under all Acts administered by ZIMRA, for the tax heads the taxpayer is registered for.
• The taxpayer must be up to date with all the payments in terms of all the Acts administered by ZIMRA.
• Taxpayers with outstanding tax obligations must approach ZIMRA for approved arrangements before making the application
• Taxpayers should ensure that their master data information is correct and up to date. Master data includes the following Physical Address, Email Address, Telephone Number, Bank Accounts and Industry Classification. Where email addresses being used are not the ones that are in the database, kindly fill in Rev 2 form obtainable from the ZIMRA website.
• Taxpayers registered for Value Added Tax (VAT), should ensure that they are fully interfaced for multi-currency with their invoice/ receipts showing the currency of transaction.

How does one access a Tax Clearance Certificate?

The Tax Clearance Certificate is auto-generated by the ZIMRA system to compliant clients only and thereafter, sent through email addresses that are captured in the ZIMRA database. Compliant clients are no longer required to apply for a tax clearance.

What is the validity period of a tax clearance certificate?

Tax clearances certificates for taxpayers classified as LCO and MCO clients expire on 31st December each year, while the rest of the tax clearances expire 12 months from date of issue. 

How much is charged to obtain a valid Tax clearance certificate?

There is no fee that is charged for the issuance of the Tax Clearance Certificates. Taxpayers are therefore, encouraged to report to the Police or ZIMRA offices any incidents of payments purported to be for ZIMRA or ZIMRA staff to obtain the Tax Clearance Certificate.

How do we deal with ITF263 related enquiries?

For any ITF263 related enquiries, taxpayers should use the following email addresses:

• Large Client Office (LCO) – This email address is being protected from spambots. You need JavaScript enabled to view it.
• Medium Clients Office (MCO) – This email address is being protected from spambots. You need JavaScript enabled to view it.
• Small Clients Office (SCO) – This email address is being protected from spambots. You need JavaScript enabled to view it.
• Region 2 – This email address is being protected from spambots. You need JavaScript enabled to view it.
• Region 3 – This email address is being protected from spambots. You need JavaScript enabled to view it.

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) 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. 

Who is a clearing agent?

A clearing agent is a person who, for gain, acts for an importer, exporter, manufacturer or the holder of a license; or holds himself out as carrying on the business of acting for importers, exporters, manufacturers or holders of licences; in performing any function under, or complying with any requirement of the Customs and Excise Act.

Clearing agents are companies or partnerships, which are licensed by ZIMRA to operate in Zimbabwe. The clearing agents’ license expires on 31 December of the year for which it was issued, and should be renewed if one wishes to continue operating. For a license to be renewed, submission of electronic application for renewal should be done on or before the 31^st of October. The F64 is now lodged online in the ASYCUDA syste .

What is required to be licensed as a clearing agent?

Any person who wishes to be licensed as a clearing agent shall submit an application in form No. 64 (fully completed and signed including telephone numbers and e-mail details) and furnish the following particulars or documents:

• the name under which the clearing agent will operate and the address of its principal office in Zimbabwe;
• where the applicant:
  1. is a company, certified copies of the certificate of incorporation under the Companies Act [Chapter 24:03], and of the memorandum and articles of association of the company, together with the names of all shareholders and the directors of the company;
  2. is a partnership a certified copy of the partnership agreement, together with the names of all the partners;
• evidence that the clearing agent has the necessary resources to conduct customs business;
• CR14 if there is change on directors
• finger prints for employees and directors duly vetted by Police once every three years
• Curriculum vitae and certified academic and professional certificates for employees authorised to lodge entries with ZIMRA (employees should have received formal customs clearance training and have a minimum of one (1) year experience.
• Current bank statement
• Confirmation Letter from a recognized clearing agent association
• Lease agreement / proof of ownership of premises
• Balance sheet and detailed asset register for previous financial year
• Submit any additional details of your countrywide office network and/or Agent to Agent Agreements for the ports you do not have offices.
• NSSA clearance certificate.

If the Commissioner approves the application he shall call upon the applicant to enter into a bond, with sufficient surety for the due observance of all relevant provisions of the Customs and Excise Act. A license shall be issued after registration of the bond and payment of the prescribed annual license fee.

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) 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. 

Persons in trade are encouraged to utilise the ZIMRA e-services portal to register with ZIMRA online by following the steps below:

Step 1: Application for E-Services Account

• Type the address http://efiling.zimra.co.zw on your internet browser
• Click Register
• Complete the details of the company / organisation on the form provided
• Click on “Submit” and an email is immediately sent to your e-mail address.
• Open the message in your e-mail and click on the URL. This completes the registration process.

Step 2: Online BP Registration

• Type the address http://efiling.zimra.co.zw on the internet browser
• Click Login
• Enter you Username and Password
• Click Sign In
• Click “I do not have a Business Partner Number”
• Complete all the required information in the following way:

Under the heading Profile Details, complete the details of the organization

• Click the heading Directors in order to capture the details of the directors

Do the following to add a director

• Click Add
• Complete the details of the director
• Click Save
• If the director already has a BP Number, click Search, type the BP number of the director, click Search
• Repeat the process if adding several directors

• Click the heading Shareholders in order to capture the details of the shareholders

Do the following to add a shareholder

• Click Add
• Complete the details of the shareholder
• Click Save
• If the shareholder already has a BP Number, click Search, type the BP number of the shareholder, click Search, Click Save

Repeat the process if adding several shareholders

• Click the heading Bank Details in order to capture the details of the bank details

Do the following to add details of a bank

• Click Add
• Complete the details of the bank
• Click Save

Repeat the process if adding several banks

• Click the heading Other Details in order to capture the details of the Tax Consultant, Representatives / Public Officers, and Branches

Do the following to add a Tax Consultants, Representatives / Public Officers

• Click Add
• Complete the details
• Click Save
• If the Tax Consultant, Representative / Public Officer already has a BP Number, click Search, type the BP number of the shareholder, click Search, click Save

• Click “Next” at the bottom of the page, to go to the tab for attachments.
• On “Select the document to upload”, click Browse to select your document. Note that the attachments must be in scanned format.
• On “Select type of document to upload”, drop down to select the type of document
• Click Upload Selected File

Repeat the process if you are attaching several documents.

• Click “Next” at the bottom of the page.
• Complete the details on the Finish tab
• Click Submit

Watch for feedback in your e-mail. You will get your BP Number online.

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) 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. 

WHAT ARE PROSPECTING EXPENSES?

Prospecting expenses are expenditure incurred by a miner (other than that which is allowable under the general deduction formula) on operations, either in search of mining claims or for minerals after a mining claim has been pegged. Such expenditure is allowable in the year of assessment in which it is incurred and, in the absence of income from such operations, such expenditure may be set off against other income from trade or investment.

ARE PROSPECTING EXPENSES ALLOWABLE AS A DEDUCTION?

Prospecting expenses are an allowable deduction according to section 15(2) (f) (ii) of the Income Tax Act.

WHAT ARE THE CONDITIONS OF CARRYING FORWARD PROSPECTING EXPENSES?

A prospector who later intends to eventually carry on mining operations may elect that prospecting expenditure incurred be carried forward and be allowed only against income from mining operations. If mining operations were to fail to materialize, deductibility of the prospecting expenditure would have been lost. The election is binding for any year of assessment for which it is made but not for any subsequent year.

WHICH EXPENDITURE IS ALLOWABLE UNDER SECTION 15(2) (f) (ii)?

The expenditure may take the form of surveys, sinking of boreholes, digging of trenches and pits, and other prospecting and exploratory works undertaken for the purposes of acquiring rights to mine minerals or incurred on a mining location in Zimbabwe. This section excludes expenditure allowable as a deduction under Section 15(2) (f) (i).

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) 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. 

Fiscalisation refers to the use of approved fiscal devices to record taxable sales transactions and other tax information on the read-only fiscal memory at the time of sale for use by the Zimbabwe Revenue Authority (ZIMRA) in Value Added Tax (VAT) administration. The fiscalised gadget records information on read only memory, meaning that once recorded, it cannot be altered. Registered operators who fiscalise must also ensure that the fiscal devices are interfaced with ZIMRA servers for the purposes of transmitting information to ZIMRA.

Who is supposed to Fiscalise?

All Value Added Tax (VAT) registered operators in categories A, B, C and D are required to fiscalise and interface the fiscal devices as outlined in SI 104 of 2010 as read with SI 148 of 2016 and SI 153 of 2016.

How do I know the correct type of fiscal device to use?

There are three (3) categories of Fiscal Devices and their suitability varies as follows:

What are the obligations of a registered operator?

• To acquire appropriate devices from approved suppliers
• To submit the Fiscal device registration form (Form FRT1) to the suppliers of the fiscal device for registration. The form can be obtained or accessed from any ZIMRA office or from the approved suppliers, or the ZIMRA website (www.ZIMRA.co.zw).
• To integrate systems to the fiscal device
• To ensure there is back-up power supply capable of lasting at least eight hours from the time the power supply ceases
• To liaise with the supplier on installation and configuration of the devices onto the system and interfacing with the ZIMRA server
• To ensure tax rates configured into the system are correct
• To print test Z-Report indicating that the device is now in fiscal mode
• To confirm with ZIMRA that the device is working and ready to record tax information
• To liaise with ZIMRA on the sealing of device indicating that the device is ready for use
• To record all sales using the device once it has been fiscalised and not to use any alternative systems without the approval of ZIMRA
• To prepare daily, monthly and annual reports of sales and VAT
• To keep a record of the servicing of the device
• To ensure that no other person uses the fiscalised device which has been registered under your BP Number
• To report all faults to ZIMRA promptly and no later than eight hours from the time of occurrence and get reference numbers for all faults reported
• To ensure that any breaking of the seal is approved and always done in the presence of ZIMRA personnel.
• Issue customers with invoices and receipts for business transactions done reflecting the correct currency of transaction
• Ensure that the Fiscal Tax invoice/receipt display the correct description of goods, correct amount tendered and correct currency tendered
• Where the registered operators issue discounts to their customers in either ZWL$ or foreign currency, they must issue credit and or debit notes to correctly record the changes in currency of trade
• To remit taxes in the currency of transaction according to Section 4A of the Finance Act (Chapter 23:04) and Section 38 [4] and Sec 38[4] [a] of the VAT Act [Chapter 23.12)

NB: If a device is going to be out of use for more than eight hours due to interruption in power supply, theft, technical fault or any other similar reason, the registered operator is required to report to ZIMRA promptly and within eight hours and receive an error report number from ZIMRA. If the fault occurred outside the operating hours of the registered operator, public holiday or weekend, the registered operator must notify the Zimbabwe Revenue Authority no later than 8am of the following working day.

Members of the public are therefore encouraged to report all cases where the registered operators are not issuing receipts/invoices displaying correct details on the receipts. They can contact ZIMRA Audits, Risk and Compliance team on the following ZIMRA Hotlines 08004423 or 0242-770884.

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) 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. 

1. What is an Advance Tax Ruling?

An Advance Tax Ruling (ATR) is a written statement issued by the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA) regarding the interpretation or application of any of the Taxes Acts which include Income Tax Act, Capital Gains Tax Act, Customs and Excise Act and Value Added Tax Act to mention a few.

The Commissioner General of ZIMRA is empowered in terms of Section 34D of the Revenue Authority Act [23:11] to issue an Advance Tax Ruling to an application by any person in respect of a proposed transaction that may or may not be liable to tax. The Commissioner General can also issue a ruling to clarify challenges in interpretation of tax laws. 

1. Types of Advance Tax Ruling

1. Binding General Ruling –This is an advance tax ruling that affects all taxpayers at any time and issued at the CG discretion.
2. Binding Private Ruling– This is an advance tax ruling issued in response to an application by a person regarding the application or interpretation of the provisions of any of the Revenue Acts in respect of a proposed transaction as it affects the applicant alone.
3. Binding Class Ruling - This is an Advance Tax Ruling issued in response to an application by a person regarding the application or interpretation of the provisions of any of the Revenue Acts in respect of a proposed transaction asit affects a specific class of persons.
4. Non-binding Private Opinion – this is a statementissued by the CG in response to an inquiry by a person in order to provide the person with informal guidance in respect of the tax treatment of a particular set of facts and circumstances or transaction, but which does not have any binding effect.

1. Purpose/Benefits of an Advance Tax Ruling

It promotes consistency, clarity and certainty in the interpretation and application of the tax law. It also assists clients in confirming the tax consequences of proposed transactions and promotes voluntary compliance by assisting them to comply with the tax laws. Advance tax rulings are also beneficial in contract negotiation as they enable each negotiating party to understand tax obligations and concessions applicable to them to avoid confusion or conflict between the contracting parties relating to the tax implications of their transactions.

1. How to Apply for an Advance Tax Ruling?

A client who requires an Advance tax ruling in respect of a proposed transaction should apply  to the Commissioner General of ZIMRA on the prescribed form ATR1 which can be downloaded from the ZIMRA website www.zimra.co.zw. Applicant should ensure that all required details and the full facts of the proposed transaction are disclosed on the form. It should be noted that while application should be submitted to the Commissioner General’s attention, they can be submitted through any ZIMRA office for ease of access. In processing the application, the Commissioner General of ZIMRA may request any additional information from the applicant at any time which is required to assist in the issuance of a ruling.

1. Cases Where Application for Advance Tax Ruling May Be Rejected

The Commissioner General of ZIMRA may reject application for Advance Tax Ruling in circumstances where the application:

• Requires the rendering of an opinion, conclusion or determination regarding the market value of an asset.
• Relates to interpretation of the laws of a foreign country
• Requests the interpretation or determination of pricing of goods or services supplied by or rendered to connected persons
• Requires the determination of the constitutionality of any tax law
• Entails a proposed transaction that is hypothetical or not seriously contemplated
• Relates to determining whether a person is a casual, part time or fulltime employee, or an independent contractor
• Is submitted for academic purposes
• Relates to a matter that is under audit, investigations or examination
• Is with respect to the application or interpretation of any general or specific anti-avoidance provisions
• Results in failure or refusal by the applicant to give additional information requested

1. It should be noted that the above list is not exhaustive and our valued clients are encouraged to make an enquiry with ZIMRA if they require clarity on this issue.

1. Effect of Fraud and Misrepresentation

A Binding Private Ruling or a Binding Class Ruling is nullified if the proposed transactions are materially different from the transactions actually carried or constitute fraud or misrepresentation or wilful non-disclosure of a material fact.

1. Withdrawal or Modification of an Advance Tax Ruling

The Commissioner General of ZIMRA may withdraw or modify an Advance Tax Ruling at any time and notify the persons affected accordingly.

Taxpayers are urged to take cognizance of this facility to avoid getting into transactions without due regards to their tax implications to ensure compliance as there are penalties for default.

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) 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. 

Customs – Business Relationship

In line with international best practice and the Customs and Excise Act [Chapter 23:02] section 216B, Zimbabwe has implemented the Authorized Economic Operator (AEO) programme.

1. Authorized Economic Operator (AEO)

• AEO is a programme under the World Customs Organization (WCO) SAFE Framework of Standards to secure and enhance international supply chain security and facilitate movement of legitimate goods across international borders.
• An AEO may defined as a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs Administration as complying with WCO or equivalent supply chain security standards. AEO include inter-alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors. The facility is open to all stakeholders in this supply chain.

1. ZIMRA AEO Programme

• Administered by Customs and Excise Division, the AEO Programme is a voluntary programme open to all business entities that participate in the global supply chain.
• Business entities that meet pre-determined compliance standards are accredited as AEOs and as such enjoy appropriate facilitation on Customs clearance. 

1. Benefits of AEO Programme

• Faster movement of cargo through the Border/Port of entry
• Simplified Customs formalities
• Fewer physical and document-based controls
• Reduced demurrage and other related costs
• Priority treatment in query resolution
• Choice of the place for physical examination
• Facilitation for movement of cargo during periods of trade disruptions
• Improved relations with ZIMRA
• Promotes an AEO accredited entity as a secure and reliable trade partner thereby improving business competitiveness.
• Mutual recognition of AEO authorizations between Customs authorities as a long term benefit.
• Provides businesses with internationally recognized security standards.
• The opportunity to self-assess allows entity to have a full insight into its operations and business practices, identify and strengthen any security or compliance related weaknesses

1. Qualification Criteria

Any entity interested in getting benefits of the AEO programme shall apply in writing to the Commissioner of Customs & Excise for accreditation. The entity must meet the following conditions:

• Be established in Zimbabwe;
• Have appropriate record of compliance with Customs and other relevant laws;
• Have a satisfactory system of managing commercial and, where appropriate, transport records;
• Have proven financial solvency; and
• Ensure that there is general maintenance of approved security and safety standards at both the entity`s place of operations as well as its business systems and procedures.

1. AEO Application Process

• Consultation with nearest ZIMRA office on AEO application procedure
• Completion of and submission of self-assessment questionnaire, application form and other relevant attachments required for the granting of AEO status
• Examination of application by ZIMRA
• Onsite inspection by ZIMRA
• AEO authorization

1. Obligations of an AEO

The AEO is required to;

• Keep proper records it terms of Section 223 of the Customs & Excise Act [Chapter 23:02].
• Maintain an accounting system which is in accordance with the Generally Accepted Accounting Practices (GAAP) and which facilitates audit based customs control.
• Ensure that its staff members conduct business in accordance with the procedures of the Customs & Excise Act and any other Act administered by ZIMRA or any instructions given by the Commissioner of Customs & Excise.
• Ensure a relationship of good faith is maintained by its staff at all times in dealing with the ZIMRA.
• Allow ZIMRA officers physical and electronic access to the information and documents as provided for in terms of Section 223 of the Customs & Excise Act.
• Use compatible E-Systems for Customs procedures and commit to regularly upgrade the systems.
• Ensure that its premises are in conformity with the appropriate security and safety standards.

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) 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. 

A tax credit is a type of tax incentive that reduces the tax liability of qualifying taxpayers as it is deducted from the income tax that would have been charged to the taxpayer. There are two tax credits which can be claimed by corporates namely the Youth Employment Credit for a qualifying taxpayer who employs an additional employee aged thirty (30) years or less during the year of assessment and the tax Credit for employment of physically disabled persons for a qualifying taxpayer who employs a physically disabled person. For the purposes of these credits:

“Employee” excludes a trainee, intern, apprentice and a managerial employee. Managerial employee includes a supervisor.

“Qualifying taxpayer” means a company or trust or individual taxpayer engaged in trade or investment who qualifies for a credit in terms of Section 13A of the Finance Act [Chapter 23:04].

1. Tax credit for employment of the youth (Youth Employment Tax Incentive).

Finance Act No.3 of 2019 introduced the Youth Employment Tax Incentive (YETI). This incentive is aimed at stimulating employment of young people in Zimbabwe. The credit to be deducted from the income tax payable by a qualifying taxpayer is ZWL$1500 per month for each additional employee. However, the aggregate amount to be granted as a credit for all additional employees shall not exceed ZWL$180,000.00 per year.

What are the conditions to be fulfilled for the Youth Employment Credit?

• The qualifying taxpayer claiming the credit should be a registered taxpayer and should be compliant for the preceding year of assessment. All returns and taxes due should have been paid and if on payment plan client must be adhering to the same.
• The tax credit will only be claimed after the additional employee has served for a consecutive 12 months and should be earning at least ZWL$2,000.00per month. The tax credit will not apply to companies or trusts or individual taxpayers whose annual turnover is equal to or exceeds an equivalent of US$1 million.

Please note that where the taxpayer has an assessed loss during the year of assessment, the credit shall be added to the assessed loss and the amount is carried forward to the next year of assessment.  With effect from the 1^st of January 2022, any excess credit incurred by a company with a payable position will be carried forward. The Commissioner shall not refund any excess credit if the credit exceeds the tax payable during the year of assessment.

3. TAX CREDIT FOR EMPLOYMENT OF PHYSICALLY DISABLED PERSONS

The tax credit for employment of physically disabled persons was introduced with effect from the 1^st of January 2022, to encourage employers to employ such physically challenged persons.  A “Physically challenged person” means an individual having a medically ascertainable physical condition or impairment that makes it difficult for him or her to do things that other individuals without the same physical condition or impairment can easily do. A tax credit of US$50 (or ZWL equivalent at prevailing rate) shall be granted per month for each additional physically challenged employee up to a maximum of US$2,250 (or ZWL equivalent at prevailing rate) per year of assessment. 

What are the conditions for the employment of physically disabled persons?

• The taxpayer shall be registered for tax purposes and tax compliant for the preceding year of assessment, provide medical reports from Government Hospitals proving disability of employee, comply with National Social Security Authority (NSSA) regulations;
• The credit will only be claimed after the employee has served the particular organisation for a period of 12 consecutive months.
• The Commissioner shall not refund any excess credit if the credit exceeds the tax payable during the year of assessment. Excess credit shall be carried forward to the next year of assessment.
• Where the taxpayer has an assessed loss during the year of assessment, the credit shall be added to the assessed loss and the amount is carried forward to the next year of assessment.

Please note that the taxpayer will allow the credit when computing QPDs and on the Self-Assessment returns and shall not be required to apply for approval. Employers can only claim the credit in the year the employees are engaged if, the employees are engaged on 1^st of January. For any other period, other than 1^st of January, the credit is claimable only in the following year of assessment.                                                                                    

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 attach to the Zimbabwe Revenue Authority. 

Withholding tax on tenders is deducted from taxpayers who fail to furnish the paying officer with valid Tax Clearance Certificates in terms of Section 80 of the Income Tax Act (Chapter 23:06).

What is the rate and threshold of withholding tax on tenders?

The rate of withholding tax on tenders is 30% and the threshold is an aggregate of ZWL$130,000.00 or US$ 1,000.00 during the year of assessment effective 1 January 2022.

Consequences of failure to withhold the tax

A registered taxpayer who fails to withhold or to pay the Commissioner any amount required to be withheld from a payee in terms of of Section 80 of the Income Tax Act (Chapter 23:06) shall be liable for the payment to the Commissioner, not later than the date on which payment should have been made if the amount had been withheld.

To avoid the inconvenience, follow the following easy steps and authenticate the tax clearance of your Business partners:

Option 1 - Recommended Option

• Type http://efiling.zimra.co.zw on your Internet Browser
• Press Enter
• Click Validate Tax Certificate
• On the page that comes up:
• Enter the BP number on the tax certificate in the Business Partner Number field
• Enter the Authentication Code as it appears on the tax certificate in the Code field
• Type the code for the image as shown in the field available.
• Click Verify Certificate
• Make sure the details that will appear on the internet page are the same as on the tax certificate being verified.

Option 2 – use of bar code reader

• This option allows you to scan the bar code on the ITF 263 using a bar code reader or a smart phone.

Option 3 – Applicable in cases of doubt

• Send a scanned copy of the ITF 263 to 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.
• ZIMRA will respond with confirmation whether or not the ITF 263 is authentic.

Option 4  - https://efiling.zimra.co.zw:333: For clearances which are automatically generated and sent to clients’ email addresses from SAP.

Please note:

Where you fail to validate the tax clearance online, contact ZIMRA on the following emails for assistance:

• This email address is being protected from spambots. You need JavaScript enabled to view it.
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• This email address is being protected from spambots. You need JavaScript enabled to view it.
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Please take note of the importance of withholding 30% from your suppliers that do not have valid tax clearance certificates to avoid the inconvenience of having to pay the withholding tax on behalf of your suppliers.

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 attach to the Zimbabwe Revenue Authority.