Zimbabwe Revenue Authority

Authentication of a tax clearance

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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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.

Drawback of duty

A duty drawback is a refund of Customs duties, taxes and fees paid on imported items that are subsequently exported. It is granted on imported goods not used in Zimbabwe and which are exported within two years from the date on which duty was paid thereon. Types of duty drawback 1. Same State Drawback This is when the goods are imported into Zimbabwe and subsequently exported without being used in Zimbabwe. Example: A company imports goods and pays all duties due on importation then later realises that the goods are faulty and decide to export them unused. In this case, the company can apply for a drawback of the duty paid on importation. 2. Industrial Drawback Applies to raw materials imported into Zimbabwe for processing and then the finished products are exported. The materials used in manufacturing must be accounted for to the satisfaction of the Commissioner of the Zimbabwe Revenue Authority (ZIMRA). Example: Company XYZ imports rolls of fabrics and uses it to make dresses and subsequently exports them. A drawback of duty can be applied for, provided the company can account for the fabric imported for use in the manufacture of the dresses. Conditions for drawback of duty • The goods shall not be used in Zimbabwe. • Exportation of goods shall be done within two (2) years from the date on which duty was paid. • The goods shall only be dispatched from a place at which there is a customs house or customs post. The exporter, before the goods are exported, shall tender to an officer at the place from which the goods are to be dispatched an application for drawback on form No. 44, together with the original invoices relative to the goods, in addition to the bill of entry or other documents to be presented prior to exportation. 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.

Public Officers

Appointment of Public Officers

Section 61 of the Income Tax Act [Chapter 23:06] stipulates that every company which carries on a trade or has an office or other established place of business in Zimbabwe shall at all times be represented by an individual residing therein as a Public Officer. The Public Officer should be appointed within one month from the establishment of the company’s office or other place of business. Such individual shall be appointed by the company or by an agent or legal practitioner who has authority appointment authority and shall have to be approved by the Commissioner. If a company fails to appoint one, the Public Officer of such a company the managing director, director, secretary or other officer of the company as the Commissioner may designate a representative for that purpose.

Role of the Public Officer

Receive all communications from ZIMRA including every notices, processes or proceedings which may be given, served upon or taken against the organisation, made to the attention of the Public Officer.
A public officer can be an agent of such company, a person acting or appearing to act in the management of the business or affairs of such company.
Anything done by the public officer while acting for the company is deemed done by the company which he/she represents. That is, Public Officer is answerable for any omission or commission done or to be done by the company in terms of the tax law.
Every Public Officer shall be answerable for the doing of all such acts, matters or things as are required to be done by a taxpayer under the Income tax Act. In case of default by a taxpayer the public officer is also liable to the penalties.
Public Officer acts as the voice or representative of the taxpayer/company/organisation regarding tax matters and represents the company in any meetings with ZIMRA.

ZIMRA Requirements for registration of public officers

All Public Officers must register with ZIMRA. The Authority has put in place instructions for its staff to discuss company tax matters with the Public Officers only, unless authorised by the Public Officer to handle the issues with any other person. Requirements for registration of public officers are as follows:

Letter of appointment as public officer, stating the full name, identity number (ID) number, residential address and a statement to the effect that the public officer is a signatory to the company’s bank account
Proof of residence in form of utility bills, support with affidavit if not in your name
Certified copies of identity documents for Public Officer/ Representative.

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

Exportation of goods under Regional Trade Agreements (RTA) & Free Trade Area (FTA)

Zimbabwean exporters may be registered under various trade protocols in order to enjoy preferential rates of duty when their products enter another Member State. Goods exported under a Regional Trade Agreement (RTA) or Free Trade Area (FTA) may be accorded preferential treatment on entry into another country. Preferential treatment means, products will enjoy lower or total waiver of duties, while non-member states pay higher customs duties. The rates that are paid by World Trade Organisation (WTO) members outside a FTA are in terms of the Most Favoured Nation (MFN) clause of WTO. Zimbabwean companies may derive benefits from trading under the RTA or FTA.

Zimbabwe is party to the following Trade Agreements:

COMESA Trade Protocol
SADC Trade Protocol
Zimbabwe/Malawi Trade Agreement.
Zimbabwe/Botswana Trade Agreement
Zimbabwe/Namibia Trade Agreement
Zimbabwe/ Mozambique Trade Agreement
EU-ESA Interim-Economic Partnership Agreement
UK-ESA-EPA Economic Partnership Agreement

Registration for Exporters under RTA

Exporters intending to export under these trade agreements should apply to the Commissioner Customs & Excise through their nearest Zimbabwe Revenue Authority (ZIMRA) offices.

Who is eligible for registration?

Zimbabwean registered companies involved in manufacturing of goods.
Zimbabwean registered companies involved in merchandising, distribution and commodity broking.

Goods that qualify for preference

The following goods may qualify for preferential treatment:

Wholly grown products e.g. agricultural products
Animals originating in Zimbabwe
Mineral products and
Products of the manufacturing sector meeting products product specific rules of origin (Please note list is not exhaustive)

Exporter Registration Requirements

A formal application letter (on company letter head/logo) by the company to be registered under the agreement.
A certified copy of certificate of incorporation.
Certified copy of CR14
Certified copy of CR6
A valid tax clearance certificate (ITF263).
List of contact persons including their contact numbers and physical addresses.
A list of products intended to be exported (tariff headings mandatory).
List of raw materials used and where they are sourced from (tariff headings mandatory).
A detailed step by step description of the manufacturing process for each product.
A sketch plan of your factory showing machinery layout.
A certified copy of title deeds or lease agreements for the premises together with any copies of utility bills incurred in the last 3 months.
A factual cost analysis of the products to be exported.

Commodity Brokers, Merchants and Distributors

A formal application letter by the company to be registered under the agreement.
A certified copy of the certificate of incorporation.
A valid tax clearance certificate (ITF263).
List of contact persons.
A list of products intended for export.
A letter from the manufacturer of products authorizing the distributor/merchant/broker to export their product(s).
Manufacturer’s registration letter to export the particular products for which they are seeking registration.

Proof of Origin needed in the importing country

A Certificate of Origin certified by ZIMRA-Customs & Excise will be submitted to the Customs of importing country on importation of Zimbabwe originating goods.

For exports to the EU, a Zimbabwean company will not need to have certification as registration with ZIMRA under the Registered Exporter System (REX) will suffice.

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

Capital Gains Tax on cession agreements

Importation of Drones

The importation of drones by air, road or post requires a license from Civil Aviation Authority of Zimbabwe (CAAZ)?

How to clear the drones

Clearance of Drones can be done individually or commercially using registered clearing agents. In both cases, the client needs to register the goods with the relevant Authority. In this case, one needs to visit Civil Aviation Authority Zimbabwe (CAAZ) for registration and clearance with the make, model and serial number of the drone. The Civil Aviation Act (CAP 13:16) regulates the importation of drones.

The Civil Aviation Act (CAP 13:16), defines an “aircraft” to include— (a) all flying machines, airplanes, sea-planes, flying boats, helicopters, gliders and other aircraft designed to be heavier than air; and (b) all airships, balloons and other aircraft designed to be lighter than air;

Section 42 of the same Act vests control of aviation in Zimbabwe in CAAZ in that;

(1) Subject to this Act, no person shall cause an aircraft to— (a) arrive in Zimbabwe; or (b) depart from Zimbabwe; or (c) overfly Zimbabwe; except with the Authority’s permission and in accordance with any terms and conditions specified by the Authority.

(2) Any person who contravenes subsection (1) shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.

Commercial imports are cleared on a Bill of Entry Form 21 through a registered clearing agent. If the goods are less than US$1,000 (one thousand Untied States Dollars), they can be cleared on a commercial Form 49 with the use of the services of a clearing agent.

Private imports of drones can be cleared at the counters without the use of clearing agents. At the post offices, the drone can be cleared on a charged parcel docket Customs officers upon production of the clearance letter.

Which documents are required for clearance?

Invoice from the supplier
Consignment note/freight statement (where applicable)
Permits/licences from BAZ and POTRAZ for radio and television broadcasting drones
CAAZ Clearance Letter for drones.

Please Note:

Drones have to be properly declared and entered for clearance by Customs at the point of entry.

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

Obligation to furnish returns and information

All persons carrying out business in Zimbabwe are required by law to furnish returns and information. They are also obliged to keep and maintain records of business transactions and proper books of accounts. The returns, information, records of business transactions and books of accounts should be in English unless dispensation to the contrary has been granted by the courts or the Commissioner.

These records may include but not limited to; Books of accounts ledgers, cash books, journals, paid cheques payroll schedules and employee information, bank statements and deposit slips, stock sheets, invoices, credit notes, debit notes, computer records, bills of entry, consignment notes, and all other books of account relating to any trade.

Taxpayers are required to observe the following:

All business records and books of accounts be prepared and kept in the English language.
All business records and books of accounts be kept for a minimum period of six (6) years.
All business records and books of accounts be open and available for inspection by a ZIMRA officer as may be required
All business records and books of accounts be available for retrieval, in the original form or copied, by a ZIMRA officer as may be required.
Where the records and books of accounts are kept on a computer, the officer should have access to them for inspection and/or retrieval from such computer or other computer-related gadgets or media.

Please be advised that any person shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment If the person:

Fails or neglects to furnish, file or submit any return or document required by the Commissioner
Refuses or neglects to furnish any information, reply to, attend to and give evidence as and when required by the Commissioner or any officer duly authorized by him,

Legal Provision to furnish returns and Information

Section 39 of the Income Tax Act [Chapter 23:06]
Section 59 of the VAT Act [Chapter 23:12]
Section 223 of the Customs and Excise Act [Chapter 23:02]

Legal Provision to keep records

Section 37B of the Income Tax Act [Chapter 23:06]
Section 57 of the VAT Act [Chapter 23:12]
Section 223 of the Customs and Excise Act [Chapter 23:02]

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

Motor Vehicles Imported Under Immigrant’s Rebate

Who is an immigrant?

“Immigrant” means any person who is a resident of Zimbabwe and enters Zimbabwe on return after having resided the outside country for a period of not less than two years or any shorter period as may be approved by the Minister; (Customs and Excise (Suspension) (Amendment) Regulations, 2022 (No. 257) as contained in statutory instrument 10 of 2022

What is a motor vehicle?

Motor Vehicle is defined as a vehicle admissible under Customs Tariff heading Nos. 87.02, 87.03 and 87.04: Provided that—
(i) Tariff heading 87.02 shall not apply to vehicles designed for transport of fifteen or more people, including the driver; and
(ii) Tariff heading 87.04 shall not apply to vehicles whose gross vehicle weight (GVW) exceed five tonne.

Legislation

On 17 January 2022, the Ministry of Finance and Economic Development published S.I. 9 of 2022 which inserted the following after subsection 10 of section 105 of the Customs and Excise [General] Regulations, 2001:

(11) A rebate may be granted in terms of this section to any person who has previously resided in Zimbabwe, on returning to Zimbabwe, after having resided outside Zimbabwe only if the person left Zimbabwe for a period of not less than two years or any shorter period in the following cases—

(a) to take up employment on appointment or assignment by the government for not less than six months; or

(b) as a diplomat; or

S.I 10 of 2022 -For the purposes of this section, motor vehicles shall be treated as being owned by an immigrant only if such motor vehicle were in physical existence and fully paid for by the immigrant at least six months before the time of his or her arrival.

(3) Subject to this section, a suspension of duty may be granted in respect of motor vehicles, imported by an immigrant if such motor vehicles—

(a) are shown to the satisfaction of the Commissioner to have been owned by such immigrant at least six months before the time of his or her arrival and at the time of their importation;

(b) are intended for personal use in Zimbabwe by such immigrant but not for trade or commercial purposes;

(c) are imported at the time of arrival of such immigrant or at such time as the Commissioner may, in his or her discretion approve;

(d) have an import value that is not in excess of forty thousand United States dollars.

(4) No suspension shall be granted in terms of this section in respect of—

(a) any motor-vehicle imported by an immigrant who is, at the time of his or her arrival, under the age of sixteen years; and

(b) more than one motor-vehicle imported by an immigrant; and

(5) Any suspension under this section shall not be granted more than once during any period of four years.

(6) Any immigrant to whom a suspension of duty has been granted in terms of this section shall with effect from 1st January, 2022, for a period of 2 years after the granting of the suspension— (a) notify the Commissioner of any change of their residential address within fourteen days of the date of such change; and

(b) report to the nearest Customs office once every year, failure of which full duty waived at the time of importation shall become due and payable.

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

ZIMRA engages fourth estate

The Zimbabwe Revenue Authority engaged members of the media fraternity by hosting editors from different media houses on 30 March 2022 in Harare to equip them with knowledge of tax and customs strategic issues and their impact in the economic and social development matrix of the nation.

Speaking at the engagement workshop, ZIMRA Acting Commissioner General, Ms Regina Chinamasa expressed satisfaction with the media coverage that the Authority gets in the media particularly on issues to do with corruption, smuggling, operations at the ports of entry, road side blitz among other issues.

“We are happy that as our media partners, you have lived up to the journalism principles and observed the sacrosanct philosophies of reportage which are the truthful, objective and fair coverage of stories supported by facts.

However, we believe the media should also consider going deeper in other critical areas that require in-depth analysis and interpretation such as revenue leakages, transfer prices, base erosion and the importance of compliance by individuals and corporates given the broad impact of such moves to the revenue mobilisation agenda,” said Mrs Chinamasa.

She also urged the journalists to do everything necessary when reporting on critical issues to do with ZIMRA to better educate the public from an informed position.

The editors were drawn from the Zimpapers, AMH, AB Communication, Financial Gazette, New Ziana media houses as well as Xinhua News Agency and online newspapers.

ZIMRA undertook this opportunity to share with the media, the ZIMRA Strategy from 2021 to 2025, a key roadmap that gives an indicator of how ZIMRA programs and projects pan out against the National Development Strategy 1 targets and the strides the Authority is making in the digitalisation and transformation of processes to enhance the ease of doing business.

The editors sought clarity on several strategic projects and ZIMRA’s services which were addressed by the executives.

The media engagement is part of ZIMRA 4Ps strategy with one of the Ps being building strategic Partnerships with stakeholders in raising awareness to the public on ZIMRA operations and the media being one of the stakeholders.

Victoria Ruzvidzo, Editor of Sunday Mail

Terrence Mapurisana from ZBC Classic 263 radio

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Zimbabwe Revenue Authority

News

Authentication of a tax clearance

Drawback of duty

Public Officers

Exportation of goods under Regional Trade Agreements (RTA) & Free Trade Area (FTA)

Capital Gains Tax on cession agreements

Importation of Drones

Obligation to furnish returns and information

Motor Vehicles Imported Under Immigrant’s Rebate

ZIMRA engages fourth estate

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