• ZIMRA is an agent of the Zimbabwean Government whose main responsibility is revenue collection. This is done  through the administration of the following Acts:

    Income Tax Act [ Chapter 23:06]

    Value Added Tax (VAT) Act [Chapter 23:12]

    Capital Gains Tax (CGT) [Act Chapter 23:01]

    Customs and Excise Act [Chapter 23:02]

    In addition to revenue collection ZIMRA also has the following mandates:

    Facilitate trade and travel. This is achieved by ensuring smooth movement of goods and people through inland and border ports of entry/exit.

    1.  Advise Government on fiscal and economic matters. This includes revenue forecasting, participation in national budget process and revision of Acts.
    2.  Protect civil society. ZIMRA’s operations also include curbing smuggling and any forms of international trade crime as well as to enforce import, export and exchange controls. Most of these controls are meant to protect the consumer against dangerous and harmful drugs, hazardous substances, expired drugs, pornographic, objectionable or undesirable materials, and harmful substances.

  • ZIMRA’s main mandate is collection of taxes in line with Revenue Authority Act and other subsidiary legislation. Local Authorities have their legislation that govern their operations and this includes the registration of shop licences.

  • You don’t pay to register for tax and neither do you pay to get a tax clearance. All those services are provided free of charge.

  • You have to register with ZIMRA within30 days after starting the business.  Registration can be done online or manually upon application.  The following documents should be submitted for a newly formed company together with a completed REV 1 form or attached when registering online, in order to be registered:

     

    1. Certificate of Incorporation;
    2. CR14: contains details of directors
    3. CR6: contains registered address of company
    4. Stamped current Bank Statement;
    5. Memorandum of Association (1st 3 pages plus the last page)
    6. Articles of Association (1st 3 pages plus the last page)
    7. Documents for at least 2 Directors
    8. a)       Identity card;
    9. b)      Proof of residence in form of utility bills, support with affidavit if bill is not in your name.

     

    1. Documents for the Public officer
    2. a)       Letter of appointment as public officer, stating the name, ID Number, Residential address and a statement to the effect that the public officer is a signatory to the company’s bank account;
    3. b)      Identity card
    4. c)       Stamped current bank statement;
    5. d)      Proof of residence in form of utility bills, support with affidavit if not in your name.

     

    For Individuals:

    1. Stamped current bank statement;
    2. Copy of ID;
    3. Copy of proof of residence in the form of utility bills, supported with affidavit if not in the trader’s name.

     

     

    After registration is confirmed the company is allocated a Business Partner Number (BPN) and advised of the tax heads registered for.

     

    Every registered client is required to submit a tax return after the end of each tax year by 30 April of the following year. The tax year runs from 1 January to 31 December of each year.

     

    Some business operators are required to pay Presumptive Taxes and this includes operators of omnibuses, taxi-cabs, driving schools, goods vehicles, hairdressing salons, informal traders, operators of restaurants or bottle stores, small scale miners, cottage industry operators, operators of commercial waterborne vessels used for the carriage of passengers for profit and fishing rigs.

     

    Any person who trades in taxable supplies and whose annual taxable turnover exceeds or is likely to exceed US$60 000.00 must apply to register for VAT on Form REV 1. The submission of VAT returns and payment of the tax due is the 25th of the month following the end of the tax period.

     

    Every business person who becomes an employer is required to apply to the Commissioner General for registration within 14 days of becoming an employer

    Remittance of Pay As You Earn (PAYE) to ZIMRA is to be done within 10 days after the end of the month during which the amount was withheld.

     

    You are required to keep reasonable and proper records and books of accounts for all and all other documents required to be accounted for in terms of the various Acts administered by ZIMRA. Retain all records for at least six (6) years.

  • The following are some of the types of tax that are payable  to ZIMRA

    • Income tax – tax levied on business income for individuals or companies or any other entities and it varies with their respective income or profits (taxable income).
    • PAYE (Employee tax)- a withholding tax charged on salaries ( income) payable to employees.  
    • Value Added Tax- is an indirect tax on consumption, charged on the supply of taxable goods and services. It is levied on transactions rather than directly on income or profit, and is also levied on the importation of goods and services.
    • Presumptive tax (informal trader’s tax) – fixed rate of tax chargeable to selected sectors within the economy such as hair salons, bottle store owners etc.
    • Capital Gains Tax- paid when a person/ company sells an immovable property or marketable securities.
    • Withholding taxes- paid by the payer and may or may not be a final tax.