Tax Clearance Certificates Explained

An ITF 263 is a Tax Clearance Certificate. It is issued to clients who are fully paid up and whose Income Tax, Value Added Tax and PAYE returns are up to date.

What is the purpose of an ITF 263?

A valid tax clearance certificate will be issued to confirm that the client’s tax position is satisfactory and there is no need for the payer to withhold 10 % tax.

Obligations of Registered Taxpayers (Section 80 of the Income Tax Act [Chapter 23.06])

All registered business operators including Government, quasi-government and statutory corporations who enter into any contracts which result in an obligation to pay any amounts totaling or aggregating US $250.00 or more are required to withhold 10% of each amount payable to payees without a valid tax clearance certificate.

The payer’s obligations are as follows:

  1. The amount deducted must be remitted to ZIMRA on or before the 10th day
  2. The person from whom the amount has been withheld must be furnished with a certificate showing full details including the amount withheld.
  3. The payer should retain a copy of the tax clearance certificate furnished by registered taxpayers.
  4. The payer is liable for the amount that she /he has failed to withhold and is liable for a penalty equal to the amount that was withheld, that is 100% of the amount. Interest is also payable on the outstanding amount

Exceptions to the Requirement to Withhold

10% The following transactions present exceptions to the requirement to withhold 10% if no valid tax clearance certificate is presented;

  1. amounts paid in terms of employment contracts
  2. Sales effected in any shop in the ordinary course of the business of the shop and any other consumer contracts for the sale or supply of goods or services or both in which the seller or supplier is dealing in the course of business . This caters for sales by retailers or wholesalers to consumers.
  3. Payments for the supply of farm produce and livestock to farmers are also exempt from the need for the amount to be withheld. There is therefore no need to ask for tax clearances in such cases.

N.B Payments for farm produce to persons who buy for resale such as traders, retailers and wholesalers are still subject to the withholding amount requirements.

For Further information, please contact your nearest ZIMRA office.


Article submitted by ZIMRA’s Legal and Corporate Services Division. Their contact details are as follows:

Zimbabwe Revenue Authority
Legal and Corporate Services Division
6th Floor, ZB Centre
Cnr First Street/Kwame Nkrumah Avenue
P O Box 4360
Tel: 04 - 790811-4
Fax: 04 - 774087
E-Mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it



December 2017
26 27 28 29 30 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 1 2 3 4 5 6