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 ( ZWL  per month with effect from 31/12/2019)

Omnibuses

8 to 14 passengers

400

15 to 24 passengers

450

25 to 36 passengers

700

From 37 passengers and above

1000

Taxi-Cabs

All

250

Driving Schools

Class 4 vehicles

1000

Class 1 and 2 vehicles

1300

Goods Vehicles

More than 10 tonnes but less than 20 tonnes

2000

More than 20 tonnes

5000

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

5000

     

Ship, cruiser, boat, houseboat, speedboat, canoe

Less than 5 passengers

600

Less than 16 passengers

Less than 26 passengers                                       

1000

2000

Less than 50 passengers

3500

50 or more passengers

4500

Hair Saloons

 

100 per chair

Restaurants and bottle stores

 

700

Cottage Industries

 

700

Fishing Rigs

 

800

     

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 ZWL100.00 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 ZWL700 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 ZWL700 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 above.