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.