Presumptive Tax

Presumptive Tax legislation was introduced to broaden the revenue base in view of the increase in informal business activities. Selected sectors of the economy were targeted to ensure the participation of informal businesses in tax payment in line with experiences of other developing countries.

Details relating to the current rates and due dates of the various categories are shown below.

1. Transport Operators’ Presumptive Tax

Operators of:

Description

Presumptive Tax (US$ per quarter for each vehicle)

Presumptive (US$ per month with effect from 1/01/2017

 

Omnibuses

8 to 14 passengers

150

40

15 to 24 passengers

175

45

25 to 36 passengers

300

70

From 37 passengers and above

450

100

Taxi-Cabs

All

100

25

Driving Schools

Class 4 vehicles

500

100

Class 1 and 2 vehicles

600

130

 

Goods Vehicles

More than 10 tonnes but less than 20 tonnes

1000

200

More than 20 tonnes

2500

500

10 tonnes or less but with combination of truck and trailers of more than 15 but less than 20 tonnes

 

2500

500

 

With effect from 1 January 2015 Zinara was appointed as an agent of Zimra for the collection of presumptive taxes in respect of transport operators, taxicabs and driving schools.

Transport operators are supposed to have paid the full presumptive tax by the 20th day after the end of each quarter, however it can be paid on a monthly basis.

2. Hairdressing Salon Operators’ Presumptive Tax

Every operator of a hairdressing salon is required to pay Presumptive Tax amounting to US$10.00 per chair per month.

The full amount should have to be paid by the 20th day after the end of the quarter. Amounts not paid by the due date are subject to interest charges.

3.     Informal Traders’ Presumptive Tax

All persons in receipt of rental income from an informal trader in respect of residential accommodation, premises or a place on which trade is carried on are required to recover  an additional amount by way of Presumptive Tax equal to 10% of the rental and remit it  to ZIMRA. This also includes local authorities.

The amount should be remitted within 30 days from the date the amount is recovered. Failure to recover or remit the Presumptive Tax renders the lessor personally liable for the payment of the Presumptive Tax and a penalty of 100% of the amount due. Failure or refusal on the part of the informal trader to pay the Presumptive Tax constitutes a breach of the lease and allows the lessor to terminate the lease without notice.

4.      Small-Scale Miners’ Presumptive Tax

With effect from 1st October 2014 Small Scale Miners Presumptive tax was reduced from 2% of the gross amount payable to 0%, therefore no Presumptive tax will be collected from Small Scale Miners.

5.      Cross-Border Traders’ Presumptive Tax

Cross border traders who import commercial goods into Zimbabwe are required to pay a Presumptive Tax equal to 10% of the value for duty purposes (VDP) of the commercial goods. The only exception is cases where the trader is registered with ZIMRA for Income Tax purposes and is up to date with submission of tax returns and payment of all taxes due.

6.      Operators of Restaurants or bottle-stores

Every operator of a restaurant or bottle store is required to pay Presumptive Tax amounting to US$70 per month.

The full amount should have to be paid by the 10th day after the end of the quarter. Interest is chargeable on all amounts not paid by the due date.

7.      Cottage Industry Operators

Every person who owns, is in charge of a cottage industry regardless of it being licensed, or not is required to pay Presumptive Tax amounting to US$70 per month. Cottage industry operators include those in the furniture making or upholstery trade, metal fabrication and any other cottage industry that the Minister may, by notice in a statutory instrument, prescribe.

The full amount should have to be paid by the 10th day after the end of the quarter. Interest is chargeable where the amounts due are not paid by the due date.

8. Commercial Waterborne vessels

Presumptive Tax is charged to operators of commercial waterborne vessels used for the carriage of passengers for profit and fishing rigs. The full amount of presumptive tax shall be remitted by the 10th day after the end of each quarter, however operators can still remit on monthly basis. The rates are shown in the table below.

 

 

Operator of:

Carrying capacity inclusive of cabin crew/description

Presumptive tax per quarter per vessel in US$ with effect from

1 January 2012

Presumptive tax per month per vessel in US$ with effect from

1 January 2017

Waterborne Vessel

Up to 5 passengers

250

60

6 to 15 passengers

500

100

16 to 25 passengers

1 000

200

26 to 49 passengers

1 500

350

50 passengers and above

2 000

450

Waterborne Vessel

Fishing rigs

350

80

 

The payment of Presumptive Taxes does not exempt the presumptive taxpayer from the obligation to render Income Tax returns. ZIMRA normally carries out routine checks to ensure that all operators comply with these requirements.

 
busyPOLLXT_LOADING

Calendar

December 2017
S M T W T F S
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