Certain goods can be temporarily exported and not pay duty on their return due to their nature and purpose of export. There are personal items that are carried on a travellers person that qualify for such a reprieve in Customs that are for personal consumption. There are many cases where travellers indicate that they had temporarily exported their valuable personal effects but do not have proof that they did so. In this instance, they would not be carrying any documents to support their plea. This has resulted in many disputes among travellers and officers. Let us explore a summary of instances and goods that can be temporarily exported and not pay duty on their return.

 

Personal effects

Used clothing and toilet requisites should be in such quantities and of such values as the Commissioner may consider being reasonable. Articles like radios, binoculars, laptops and cameras should be registered at a Customs House or Port of exit before exportation. The said articles shall be brought before the officer registering them for inspection. The articles shall only be registered if they can be accurately described and are capable of being identified (have serial numbers) on their return. If the articles meet the above conditions, the officer will issue traveller with a General Registration Certificate with the full details of the article including serial numbers and his/her personal details. This certificate should then be produced on return as proof of temporary export so that no duty will be charged on that article.

Goods for Repair and Return

When goods are exported for repair and return, only the cost of repairs will be subject to duty. The tariff heading to be applied is that under which the repaired article, as re-imported would be classified. For instance, duty rates levied on the cost of repairing a television set are those applicable on an imported television set.

Where the repair was done in terms of a valid guarantee and no charge is raised for the repair, no duty will be levied on re-importation of such an article.

General Registration Certificate and Declaration Form

It is very important to declare your personal effects which you are temporarily exporting so as to avoid inconveniences on re-entry or challenges with officers at the port of exit. A General Registration Certificate is used for this purposes and in cases where such forms are scarce, a Declaration Form 47 processed by the officer at a Customs House or port of exit can also serve the same purpose. The form should clearly indicate goods temporarily exported and/or for re-importation.

Certain goods can be temporarily exported and not pay duty on their return due to their nature and purpose of export. These are personal items that are carried on a travellers person that qualify for such a reprieve in Customs that are for personal consumption. There are many cases where travellers indicate that they had temporarily exported their valuable personal effects but do not have proof that they did so. In this instance, they would not be carrying any documents to support their plea. This has resulted in many disputes among travellers and officers.

Let us explore a summary of instances and goods that can be temporarily exported and not pay duty on their return.

Personal effects

Used clothing and toilet requisites should be in such quantities and of such values as the Commissioner may consider being reasonable. Articles like radios, binoculars, laptops and cameras should be registered at a Customs House or Port of exit before exportation.  The said articles shall be brought before the officer registering them, for inspection. The articles shall only be registered if they can be accurately described and are capable of being identified (have serial numbers) on their return. If the articles meet the above conditions, the officer will issue traveller with a General Registration Certificate with the full details of the article including serial numbers and his/her personal details. This certificate should then be produced on return as proof of temporary export so that no duty will be charged on that article.

Goods for Repair and Return

When goods are exported for repair and return, only the cost of repairs will be subject to duty. The tariff heading to be applied is that under which the repaired article, as re-imported would be classified. For instance, duty rates levied on the cost of repairing a television set are those applicable on an imported television set.

Where the repair was done in terms of a valid guarantee and no charge is raised for the repair, no duty will be levied on re-importation of such an article,

 

General Registration Certificate and Declaration Form

It is very important to declare your personal effects which you are temporarily exporting so as to avoid inconveniences on re-entry or challenges with officers at the port of exit. A General Registration Certificate is used for this purposes and in cases where such forms are scarce, a Declaration Form 47 processed by the officer at a Customs House or port of exit can also serve the same purpose. The form should clearly indicate goods temporarily exported and/or for re-importation.

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. 

To contact ZIMRA:

 www. zimra.co.zw@Zimra_11

 ZIMRA.ZW

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 Contact Centre 585/ 08688007614

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0242 –758891/5; 790813; 790814; 781345; 751624; 752731

+263 0782729862

e-TIP  http://ecustoms.zimra.co.zw/etip

 

In terms of section 16 of the Capital Gains Tax Act [ CHAPTER 23:01], Capital Gains Tax (CGT) is deferred where any specified asset is transferred between spouses or a principal private residence is transferred to a former spouse in compliance to a court directive. The transferor and the transferee may elect that the sale price be deemed equal to the deductions allowable such that in the hands of the transferor nothing will be taxable.

What are the requirements for deferring CGT upon transfer of specified assets between spouses?

An election has to be made at the time the person making the election is submitting the CGT return for the assessment of his capital gain.

What are the conditions of deferring CGT?

The concession is limited to where:

(a) the ownership of any specified asset is transferred from a person to his or her spouse; or

(b) a person transfers the ownership of a specified asset which is his principal private residence to his former spouse in compliance with an order of a court providing for the maintenance of the former spouse or dividing, apportioning or distributing the assets of the former spouses on or after the dissolution of their marriage.

In what circumstances does the deferred CGT become due?

In the event that the specified asset is subsequently sold to another party, capital gain or assessed capital loss in the hands of the seller shall be calculated as if the asset is still owned by the first transferring spouse.

 

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 is Fiscalisation? Fiscalisation refers to configuring of fiscal devices to enable them to record sales and other tax information on the read only fiscal memory at the time of sale for use by ZIMRA in Value Added Tax administration. What are fiscal devices? These are electronic devices which contain a “fiscal memory”. A “fiscal memory” is a special read only memory which is permanently built into a fiscalised device to store tax information at the time of the sale. There are three broad categories of the prescribed fiscalised devices and these are;  ·        Fiscalised electronic registers, also referred to as electronic tax registers (ETRs); ·        Fiscalised printers; and ·        Electronic signature devices (ESDs)  Who should fiscalise? Every VAT registered operator, whether in retail or not, is obliged to have a fiscalised device for the purpose of recording their day to day transactions. The registered operators have certain requirements spelt out in the statutes that must be followed when one has a fiscal device. However, the Authority has noted that some registered operators are not complying to the requirements. Kindly note that as outlined in SI 104 of 2010 as read with SI 148 of 2016 and SI 153 of 2016. VAT registered operators are mandated to do the following: ü  Use the device on a daily basis and for every transaction. ü  Prepare daily, monthly and annual reports (z-reports), which outline:                i.   the date of the report and period it applies;               ii.   the name and address of the registered operator;              iii.   the VAT identification number and Business Partner Number of the registered operator;              iv.   the unique identification number (Serial number) of every fiscalised electronic register, fiscal memory device and electronic signature device used by the registered operator;               v.   the total value of sales in respect of the period covered by the report; and              vi.   the total amount of tax paid in respect of the period covered by the report.  All All currencies of trade should be shown on the report    Ensure that the device is correctly configured with particular regard to description of goods/services and the correct allocation of their respective tax rates. Keep such reports as mentioned above for a period six years and avail such reports to ZIMRA whenever required to do so. We encourage all registered operators with fiscal devices to comply as failure to do so  may attract penalties and lead to prosecution. How do I know the type of device I am required to use? VAT registered retail operators are required, for the purposes of recording their business transactions, to use: ·        A fiscalised electronic register; or ·        A non-fiscalised electronic register together with a fiscal memory device. All other operators who are required to use such devices but who are not retail operators are required to use: ·        An electronic signature device; or ·        A fiscalised electronic register; or ·        A non-fiscalised electronic register together with a fiscal memory device. Is there any assistance ZIMRA is giving in acquiring the devices? Incentives which are granted to facilitate the Fiscalisation Programme are as follows: ·        Registered operators can claim 50% of the cost of acquisition of the fiscal electronic registers as Input Tax on their VAT 7 Return. ·        In addition the remaining 50% is spread over two years as and claimed as SIA on the Income Tax Return (ITF 12C).  ·        Rebate of duty is granted to Approved Suppliers on the importation of fiscal devices and fiscal memory devices. ·        No VAT is payable on the importation of fiscal devices by approved suppliers. The local supply of fiscal devices and fiscal memory

What is a mentally or physically disabled person’s tax credit?

It is a specified amount deducted from the income tax, which a taxpayer is chargeable, where it is proved to the satisfaction of the Commissioner that the taxpayer is mentally or physically disabled to a substantial degree, but is not blind. The tax credit has an effect of reducing the tax liability of a taxpayer.

Who qualifies for the credit?

A qualifying individual taxpayer or taxpayer’s child who is proved to the satisfaction of the Commissioner to be mentally or physically disabled to a substantial degree. A taxpayer can also claim the credit for his /her child who is blind.

What are the conditions to be fulfilled?

• The taxpayer should be ordinarily resident in Zimbabwe at any time in the period of assessment.
• The employee should get a letter from a specialist medical doctor, stating the nature and degree of disability and apply for a written directive from their nearest ZIMRA office.
• A person shall be regarded as being mentally or physically disabled if his disability is not of a temporary or transitional nature.

Can the tax credit be apportioned?

• No, the tax credit cannot be apportioned.

 

Is the tax credit transferable between spouses?

• Yes, the tax credit can be transferred between spouses.
• Any portion of a credit deductible in terms of subsection (1) or (2) which is not applied in reduction of the income tax with which a married person is chargeable shall be allowed as a deduction from the income tax with which his or her spouse is chargeable.

How much is the credit?

• The specified amount of credit to be deducted from the income tax payable by a qualifying taxpayer is $ USD 900 or 450 000ZWL per each year of assessment.

What are Approved importers?

An “approved importer” means a public bus operator duly registered in terms of Part III of the Road Motor Transportation Act [Chapter 13:15].

A “public service bus” means new buses of commodity code 8702.10.11 and 8702.90.11 being imported or removed from bond by an approved importer.

Conditions for approved importers to qualify for the facility are as follows

1. An approved importer shall be allowed to import not more than twenty (20) public service buses in any twelve-month period beginning 1st July 2022.
2. Proof that the approved importer is duly registered in terms of Part III of the Road Motor Transportation Act [Chapter 13:15];
3. Written authority from the Secretary for Transport and Infrastructural Development indicating the name of the approved importer, as well as the make, model, engine and chassis number of the public service bus to be imported.
4. proof of satisfaction of the requirements of sections 37, 37A, 42 and 61 of the Income Tax Act [Chapter 23:06], a valid tax clearance certificate, proof of payment of any income tax due , payable for the previous fiscal year, and certified thereof by the Commissioner responsible for the administration of the Income Tax Act.

 

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. 

With effect from 1 June 2023, a surcharge of thirty percent (30%) shall apply on motor vehicles of an FOB value of USD 120, 000.00 and above? It an additional tax charged over and above the normal duty and tax ordinarily charged on the specified motor vehicles listed below.

Which vehicles are affected by this surcharge?

The 30% surcharge shall apply to motor vehicles of commodity codes listed below

1. The whole of heading 8703 which includes:

• Passenger type motor vehicles commonly known as saloon cars, sedans, hatchbacks, station wagons and the like.
• Ambulances and hearses

2. All double cabs and extended cab vehicles classified as follows:

• 8704.21.20 Double Cabs
• 8704.31.20 Double Cabs
• 8704.21.50 Extended Cabs
• 8704.31.50 Extended Cabs
• 8704.41.20 Double Cabs
• 8704.41.50 Extended Cabs
• 8704.51.20 Double Cabs
• 8704.51.50 Extended Cabs

 

Exclusions

The following importations will not be subjected to the 30% surcharge

1. Vehicles procured by the government
2. Vehicles of a commercial nature for example buses, minibuses, trucks, road tractor units, and the like
3. Single cab vehicles and panel vans

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.