The Zimbabwe Revenue Authority (ZIMRA) advises all Taxpayers that migration of taxpayer master data to the New Tax and Revenue Management System (TaRMS) is now functional and open to the public for registration only. Taxpayers that have not yet registered in the new system should do so without further delay.

As advised in previous public notices regarding the new Tax and Revenue Management System, taxpayers are further advised as follows;

1. Tax Clearances - Taxpayers Requesting for Issuance of Tax Clearance Certificates
   1. Where a taxpayer has an existing BP number, the tax clearance is accessed through E-Services.
   2. Where the taxpayer does not have a BP number in TRM but has a TIN in TaRMS, the taxpayer should complete a REV1 and be registered in the old system for the purpose of issuing tax clearance certificates only.
   3. The validity period for tax clearance certificates issuance will not exceed 31 December 2023 for all taxpayers.
   4. Full year Tax Clearance will be issued in TaRMS to only TaRMS registered Taxpayers, so do not be left out. Move with the times.
   5. The same clients who are VAT registered operators should be compliant with Fiscalisation Data Management System (FDMS) to receive a Tax Clearance.

2. Filing of Tax Returns and Payments –Old System

Filing of Tax Returns and payment of taxes has been extended in the old system through e-taxes and e-Services platforms from 28 October 2023 to allow for uploading of outstanding returns and payments of taxes in the old system to 27 November 2023.

3. Existing Taxpayer (Taxpayers with BP Numbers)

1. Existing Taxpayers can access their TIN through the self-service portal by using their current BP Number.
2. All Taxpayers are expected to, and can now create their user accounts on the Self-Service-Portal (SSP).

4. New Registrations (Taxpayers without BP Numbers)
   1. New Taxpayer Registration is now possible and open to the public in TaRMS.
   2. New Taxpayers will be allocated a TIN upon registration through the Self Service Portal (SSP). NO NEW REGISTRATIONS SHALL BE ACCEPTED THROUGH THE OLD e-SERVICES platform.
   3. There shall be NO Manual taxpayer registrations from now onwards.

5. To get started, follow the instructions below:

1. Visit the official Self Service Portal – SSP at mytaxselfservice.zimra.co.zw
2. Create an SSP user account by clicking on the "Sign Up" hyperlink and follow the steps to get your Username and Password.
3. Log into the system using your username and password and follow the steps as directed.
4. If you are an existing taxpayer, click on the "Register with an Existing BP Number" hyperlink and follow the instructions.
5. If you are a new taxpayer, choose the appropriate option from “Register as an Individual” or “Register as an Organisation” or “Register as a Representative of a Deceased Taxpayer” and follow the steps.
6. Select your preferred bank to link to the ZIMRA Single Account located in that bank. Note that, you should be an account holder in that bank to facilitate tax transactions.

6. Taxpayers who need physical assistance on TaRMS registration can utilise the ZIMRA Self Service kiosks at every ZIMRA station. For more information on Kiosks; please see contact centre details below. Kiosks will now be open from 8.00am to 8.00pm to assist all Taxpayers who need assistance in registration

ZIMRA would like to appreciate all Taxpayers and the Public for their patience with the Authority during this transitional period. All Taxpayers are encouraged to contact their nearest ZIMRA Offices should they face challenges or get in touch with the ZIMRA Contact Center on the details provided below.

FLAT RATES OF ASSESSMENT

1. 1. What is a flat rate?

• Flat rates assessments are the rates of duty that are applied on importation of goods for private and personal use to simplify classification of goods and calculation of duty.
• Flat rates increase efficiency and speed up clearance of travellers.
• Flat rates are covered in Chapter 98 of the Zimbabwe Customs and Excise Tariff handbook (S.I. 203 of 2022).

2. 2. When is it used

An importation shall be treated as not for Sale and not of a commercial nature –

• If it is occasional and
• it consists solely of goods for personal or family use by the consignee or traveller, and may, in the case of goods imported by a traveller, include goods intended as gifts; and
• The goods are such of a kind or quantity that there is no indication that they are imported for commercial purposes.

3. 3. Examples of flat rates applied on private importation includes:

• 55% ad valorem on audio, television and video equipment.
• 40% ad valorem on other goods
• 40% plus USD3 per kg on clothing
• 40% plus USD1 per pair on footwear
• 5% on Books
• 90% on wines
• 110% on clear beer.

4. 4. Benefits to ZIMRA

• Easy to calculate.
• Revenue collections can be increased considering that flat rates can be higher than specific rates of duty
• Speedy clearance is done .

5. Benefits to Clients

• Clients do not spend much time at the ports of entry
• Reducing of congestion
• Convenient to the client as they do not have to engage services of an agent.
• Speedy clearance is done.

3. Exemptions

However, flat rates of assessment do not cover goods imported for sale or of a commercial nature.

Flat rates of assessment do not apply to the following goods which are sent in consignment to private individuals or imported by a traveller upon his person or in his personal baggage:

1. i) literature published in braille.
2. ii) braille typewriters

iii) vehicles of tariff headings 87.01, 87.02, 87.03, 87.04, 87.05, 87.06, 87.09, 87.10, 87.11 and 87.13

1. iv) apparatus especially designed to assist physically handicapped persons to drive motor vehicles
2. v) contact lenses of tariff subheading 9001.3000;
3. vi) frames for corrective spectacle lenses;

viii) spectacles of tariff subheading 9004.1010 and 9004.9010;

1. ix) the goods of tariff heading 9021;
2. x) braille watches.

It is important to note that flat rates of duty do not apply if the person entitled has, requested that they be subjected to the specific tariffs appropriate to them. In that case the whole consignment shall be subjected to the appropriate tariffs.

Goods assessed at flat rate shall be exempt from surtax.

What is TaRMS?

Tax and Revenue Management System (TaRMS) is a new tax administration system that ZIMRA is introducing to replace the current tax payment and administration system being used for Domestic Taxes or inland revenues.  The new TaRMS will result in new business partner accounts for all Domestic Taxes paying clients as well as those paying for Excise licensing fees.

Why TaRMS?

• The system will replace the current system (SAP TRM) in Domestic Taxes, which was causing a series of system challenges thereby affecting service to taxpayers.
• New system will improve operational efficiency in the collection of taxes and service delivery to users.
• TaRMS has enabled many processes to be automated, thereby removing human interface and bureaucracy in the tax administration system.
• It will reduce the need by taxpayers to frequently visit the ZIMRA offices for services
• In terms of payments, the TaRMS system will eliminate a host of challenges that were encountered during payments processing. The tax payer only needs to worry about transferring funds to the ZIMRA single account at his/her chosen bank and submitting the returns and the system will handle payments allocations and assessments including refund processes.

The following processes will be effectively managed by TaRMS for the convenience of clients or tax payers;

• Taxpayer Registration
• Tax Returns Processing
• Tax Payments
• Refunds
• Revenue Accounting
• Taxpayer Accounting
• Debt Management
• Tax Agents Management
• Audit and Risk Management
• Case Management
• Reporting

How are taxpayers identified in TaRMS?

Taxpayers in TaRMS are identified by a TIN, which refers to Taxpayer Identification Number. This will replace the current business partner numbers that taxpayers are currently using.

For existing Taxpayers

TINs will be automatically assigned to existing taxpayers by the TaRMS and sent to the registered email addresses of the taxpayers.

For new Taxpayers

New taxpayers will be allocated TIN upon successful registration in TaRMS. The Registration process is an online process which tax payers will be able perform from their devices and gadgets that include laptops, desktops, tablets, cellphones etc. The following are key requirements for registration;

National ID number for individuals or Company Registration numbers for corporates and organizations, National ID number and email address of the Public Officer and the taxpayer email address.

How does one open a bank account for use in TaRMS?

Opening of new bank accounts by a taxpayer no longer requires obtaining a Bank Advice Note from ZIMRA for registered taxpayers. The TIN number allocated upon application in the ZIMRA Self-Service Portal (SSP) is sufficient for the taxpayer to open a bank account. However, a tax payer does not necessarily need to open a new bank account for the purpose of TaRMS, as existing bank accounts can be utilized.

How does the Single account Concept work in TaRMS?

• ZIMRA will open bank accounts in all Commercial banks in the country except for those that fail to meet the minimum configuration requirements. These bank accounts will be named ZIMRA Commissioner General Single Account. In each bank, there will be two ZIMRA Single Bank Accounts, one for ZWL and another for USD. Any other currencies on the multicurrency basket will be converted by the bank to USD at point of payment. From the list of banks with ZIMRA Single Accounts that ZIMRA will avail, the Taxpayer is expected to choose ONE BANK for Tax payment purposes. (i.e. for both ZWL and USD payments). Taxpayers cannot have a USD single account in one bank and a ZWL Single Account in another bank, they both have to be within the same bank for ease of administration. The TaRMS system will automatically keep a balance of the Tax payer’s funds in the ZIMRA Single Account in that bank. This record is kept in TaRMS in what is called the Taxpayer’s Singe Account. The taxpayer can deposit or transfer money for tax payments only to the ZIMRA SINGE Account within their chosen and registered bank.
• The taxpayer’s bank account in the chosen bank can also be used by the taxpayer for making any other transactions that are not ZIMRA related; it is not restricted to the ZIMRA payments.
• A taxpayer cannot use a bank that is not linked ZIMRA Single Bank Account for tax payments purposes. For example, a Taxpayer who is linked to ZIMRA Single Bank Account at Bank A cannot make a deposit at any of the ZIMRA Single Bank Accounts held at any other bank other than Bank A that the client has elected to use for tax payment purposes.  There is no cross transfer of funds from one Bank to another under the single account concept.
• However, the taxpayer is allowed to change from one bank to another bank. The taxpayer can submit an application form to change from one bank to another and approval is granted for as long as there are no unutilized funds in ZIMRA’s Single Account for that tax payer in the currently selected bank (i.e. a nil balance in the taxpayer’s Single Account in TaRMS)
• A taxpayer has an opportunity to transfer money back from the ZIMRA Single Bank Account to own bank account. For this transaction, the taxpayer is required to fill an online application form for the transfer. The application is automatically approved upon validation of set parameters.

 How is the Taxpayer going to make payments in ZIMRA Single Account?

• The Taxpayer can make a payment into ZIMRA Single Bank Account in three ways:
• Cash deposits and internal transfers – Taxpayers are also able to make cash deposit or do internal transfer directly through their banks; the bank will validate the payment before posting the transaction. The validation parameter is the TIN hence it is paramount that the TIN is captured correctly all the time. NB. The banks will provide new and appropriate forms for TaRMS purposes and there will be mandatory fields on the forms which include taxpayer’s name and taxpayer identification number (TIN)
• When making payment, a taxpayer does not need to indicate the tax obligation being settled. Only the TIN and taxpayer name are required, and validation of the taxpayer TIN will be done by the bank through its integration with TaRMS upon which the transaction is then credited to the ZIMRA Single Bank Account.

Deposits of other currencies other than USD and ZWL?

• Taxpayers who have currencies other than USD and ZWL for example ZAR; EUR, GBP, will be required to convert them at their bank into USD or ZWL at the prevailing rate on the date of payment. Tax liabilities and payments will be just in two currencies that is, ZWL and USD.

Are taxpayers able to make Customs payments using single bank accounts?

The ZIMRA Single Bank Accounts are specific for Domestic Taxes payments only. Customs & Excise duty payments will for now remain on the current platform and our current ZIMRA bank accounts will remain available for this purpose.

All taxpayers were advised to urgently update their Master Data with Public Officer Details in preparation for registration in the new Tax and Revenue Management System (TaRMs) through recent ZIMRA Public Notices. Further to that, the Commissioner Domestic Taxes advises as follows:

1. No new taxpayer registrations and updating of master data will be possible from 9 to 11 October 2023.
2. During this period (9 to 11 October 2023), already registered taxpayers will receive New Taxpayer Identification Numbers (TINs).
3. New registrations and master data update will only be possible in the new system with effect from 12 October 2023.
4. Taxpayers in receipt of their new TIN will be able to access the new system (TaRMS) and open user accounts from 12 October 2023 (further guidance will be provided).
5. Filing of tax returns and payment of taxes shall continue in the current system until 28 October 2023, thereafter, taxpayers will be required to file returns and pay their taxes in the new system.

All Taxpayers are encouraged to contact their nearest ZIMRA offices should they face challenges or get in touch with the ZIMRA contact centre on the details provided below.

My Taxes, My Duties: Building my Zimbabwe!!

As part of Zimbabwe Revenue Authority (ZIMRA) Business Processes Re-engineering, ZIMRA will be introducing  the Tax and Revenue Management System (TaRMS) which will go live on 12 October 2023.   This is  part of the organisation’s focus on simplifying business processes for the convenience of Taxpayers. ZIMRA is key in the national transformation and economic viability of Zimbabwe towards its vision 2030.Hence the need for ZIMRA to change its processes to facilitate ease of doing business.

TaRMS will be the new system for automating Domestic Taxes processes, replacing the current system(SAP TRM). ZIMRA has been facing a series of system challenges in the provision of its services to its Taxpayers through SAP TRM under Domestic Taxes Division.

The following will be some of the benefits of TaRMS:

Taxpayer Registration

• Elimination of duplicate Business Partner Numbers and Tax Types registrations.
• On-line validation of Company Registration Numbers(CRN), ID numbers and bank account numbers as TaRMS is integrated with Registrar of Companies, Civil Registry, and Banks.
• The system can register Public Officer/Representative, Directors and Shareholders.
• Taxpayer Identification Number (TIN) and Tax Types registration will be automatic for all entities except few cases that require ZIMRA approval.
• Reduction of manual registration forms
• Taxpayer can, through Self Service Portal (SSP), save partially completed taxpayer registration application forms or tax return in draft for continuation later on.
• Taxpayer can update master data through SSP without requirement for human intervention.

Tax Return Management

• One TIN for both USD and ZWL: In TaRMS, a taxpayer submits one return per tax period and posts liabilities in ZWL and USD. (Convenient for the taxpayer).
• All returns/claim forms are fully automated except the following which are partially automated:
  • Capital Gains Tax
  • VAT for Development Partners and VAT for Entities/Individuals with Diplomatic Immunity.

Payments Management

• The system will eliminate the issue of unallocated payments in ZIMRA Bank accounts and avoid creation of Suspense Account.
• TaRMS will eliminate overpayments and duplicate payments by Taxpayers, since payment is based on the Return submitted.
• Elimination of tax payments mis-postings (time spent in correcting mis-posted payments will now be eliminated).
• A single payment can be made to settle several tax obligations, making it cheaper and convenient for the taxpayer.
• Elimination of exchange rate variations because:
  • Tax liabilities will be only in ZWL and USD.
  • Payments will also in ZWL and USD.
  • TaRMS will have automatic account maintenance for the Taxpayer’s ledger.

Refunds Management

• TaRMS will automatically identify Refunds for processing.
• Automatic determination of any outstanding liabilities (Returns and Payments).

Debt Management

• Automatic detection of unpaid liabilities.
• Automatic aging of liabilities according to set parameters.
• Automatic account maintenance since a tax liability shown in the return is settled directly from the single account.
• System automatically calculates interest on a daily basis, update and show the total in the taxpayer ledger.
• System automatically calculates penalties from the due date and posts to the taxpayer ledger.
• TaRMS will be able to automatically reverse interest charges and penalty on all adjusted/amended tax types liabilities.
• System will be able to automatically issue reminders for payments and returns prior to due-date, on due-date, and after due date according to the escalation procedures. (Reminders will not be sent to, taxpayers who are up to date with their payments and returns).
• Taxpayer can apply for instalment plans online.
• Based on set criteria, TaRMS can automatically approve some installment plan applications.
• Automatic cancellation of installment plans upon failure to honour a payment plan.

The WCO SAFE Framework of Standards recommends that as part of modernization of customs processes at ports of entry, Scanners or Non-Intrusive Inspection Technology (NIIT) should be available and used for conducting inspections. Scanners are non-intrusive inspection tools or techniques which includes commercial X-ray cargo scanners and baggage X-ray scanners.

ZIMRA initiated the use of scanners as far back as 2005, when the Authority acquired relocatable cargo x-ray scanners for use at its major border post Beitbridge. The Authority later on procured vehicle inspection mobile scanners, palletised scanners and baggage scanners, and has recently introduced X-Ray Fast scanners at Beitbridge, Forbes and Chirundu, these X-ray scanners can be operated in drive through mode and active mode.

These scanners have the ability to detect contraband and inconsistence cargo through the use of X-ray technology.  Simplified X-ray technology results in imaging of cargo or baggage in containers or bags.  Once they have detected an inconsistency in the cargo, a physical examination can be conducted in the area that the inconsistency was noted.

This scanner technology allows ZIMRA to target high risk cargo for examination whilst low risk is quickly released that allowing for the targeted allocation of resources. Baggage Scanners are also in use are at our 3 main international airports and all major ports of entry, for the convenience of travelling public.

The scanned cargo or baggage if found to be consistence with the declaration of importer or exporter is released from customs immediately. Cargo with suspicious or inconsistence images is referred for a physical examination which usually result in collection of customs duty, detention of undeclared goods and even levying of civil fines for contravention of customs laws and procedure. Civil fines are levied on contraband found through the use of scanners.

The major benefits of scanning goods or cargo are as follows: Risk profiling is enhanced; improved revenue collection; Compliance with regulatory laws; reduction in instances of smuggling; Reduced customs clearance turnaround time; Limited physical handling of goods (COVID era) and Reduced physical interface between client and staff.

In conclusion the scanners have assured an era of Customs modernsation in order to increase efficiency and effectiveness of customs clearing process, and which has been proved to be a game changer in improving compliance to Customs Laws and procedures. 

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) 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. 

Certain goods can be temporarily exported and not pay duty on their return due to their nature and purpose of export. There are personal items that are carried on a travellers person that qualify for such a reprieve in Customs that are for personal consumption. There are many cases where travellers indicate that they had temporarily exported their valuable personal effects but do not have proof that they did so. In this instance, they would not be carrying any documents to support their plea. This has resulted in many disputes among travellers and officers. Let us explore a summary of instances and goods that can be temporarily exported and not pay duty on their return.

Personal effects

Used clothing and toilet requisites should be in such quantities and of such values as the Commissioner may consider being reasonable. Articles like radios, binoculars, laptops and cameras should be registered at a Customs House or Port of exit before exportation. The said articles shall be brought before the officer registering them for inspection. The articles shall only be registered if they can be accurately described and are capable of being identified (have serial numbers) on their return. If the articles meet the above conditions, the officer will issue traveller with a General Registration Certificate with the full details of the article including serial numbers and his/her personal details. This certificate should then be produced on return as proof of temporary export so that no duty will be charged on that article.

Goods for Repair and Return

When goods are exported for repair and return, only the cost of repairs will be subject to duty. The tariff heading to be applied is that under which the repaired article, as re-imported would be classified. For instance, duty rates levied on the cost of repairing a television set are those applicable on an imported television set.

Where the repair was done in terms of a valid guarantee and no charge is raised for the repair, no duty will be levied on re-importation of such an article.

General Registration Certificate and Declaration Form

It is very important to declare your personal effects which you are temporarily exporting so as to avoid inconveniences on re-entry or challenges with officers at the port of exit. A General Registration Certificate is used for this purposes and in cases where such forms are scarce, a Declaration Form 47 processed by the officer at a Customs House or port of exit can also serve the same purpose. The form should clearly indicate goods temporarily exported and/or for re-importation.