Temporary Export Permit (TEP) is a customs document issued to exporters of vehicles regardless of their value for personal purposes such as repairs pending re-importation. This document dispenses of the need for exporters to secure exchange control documents such as the CD1 form, which is ordinarily required on exportation of goods with a value exceeding $2000.

Who is eligible for the Temporary Export Permit (TEP)?

• Exporters who intend to export private vehicles for the purpose of holiday and repairs.

What are the conditions of Temporary Export Permit?

• Motor vehicle should be identified to the satisfaction of the Zimra Officer.
• Exporter is required to fill in the TEP document, the full detail of the description and specifications of the vehicle to be exported such as make, model, year, colour, chassis number and engine numbers of the motor vehicle.

What are the relevant documents required?

• Completed Temporary Export Permit in duplicate.
• Passport or travelling document for the traveller;
• Vehicle registration book;
• Authority from the financing bank / company if vehicle is on hire purchase or if owned by employer
• Written authority from the owner signed before the Commissioner of Oath / Police if vehicle is not registered in driver’s name;
• Zimbabwe Police clearance certificate and

What do you benefit from having a Temporary Export Permit?

• On re-importing the vehicle, vehicles on TEP are not liable to customs duties and taxes, thus temporary exported vehicles are exempt from paying duty provided they have not been repaired.
• It is also the basis on which a Zimbabwean registered vehicle can be allowed to be temporarily imported in a foreign country without payment of duty.
• It offers a permanent record at the port of exit for the vehicle (requirement of Vehicle Theft Squad) which can be utilised in investigation cases where vehicles are stolen whilst outside the country.

Procedure that you follow on re-importation

• Importer presents vehicle documents and the TEP to the ZIMRA Officer for the calculation of road access fee and payment thereof.
• Importer completes a declaration form indicating the goods that the importer purchased out of the country, including any repairs made to the vehicle.
• NB: It is at this particular point that you indicate the value of any repairs or any modifications, you maybe rebated if the value of repairs of your vehicle are within the stipulated rebate amount. If the amount is above the rebate value, you will be required to pay duty on excess.
• After meeting the above customs procedures, importer must surrender the TEP to the ZIMRA officer at the search bay while waiting for final clearance and permission to proceed out of the border.

Employers are required to calculate and remit to ZIMRA the correct PAYE. On a monthly basis the PAYE due and the Remittance Advice Form (P2) are submitted.

At year end employers should reconcile their PAYE calculations and ensure the correct PAYE was deducted in preparation for submission of the Employment Income Tax Return in January 2019. Therefore, there is need to note the following compliance requirements.

End of Year Adjustments

• Employers are expected to reconcile their payrolls and ensure the correct tax is collected per employee by end of the year.
• At the end of the year, the employer must make final adjustments to Pay As You Earn (P.A.Y.E.) calculations taking into account the total income, deductions, and credits to which the employee is entitled.
• In the case of shortfalls, the employer is obliged to make good the shortfalls, remit the tax, and recover the shortfalls from employees on the final payroll.  Where there are refunds employers should also refund the employees on the final payroll for the year.
• The employer should then extract the ITF 16 Return and submit to ZIMRA by 30 January 2019.
• The following e-mail addresses should be used to submit the ITF16 Returns:

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Issue of Tax Certificates

• All employees whose remuneration was subject to P.A.Y.E. are entitled to be issued with tax certificates (forms P6) for their records.
• The employer is required to issue forms P6 within 30 days from the end of the relevant year or within 30 days of terminating employment services as the case may be.
• Forms P6 for the employees who are employed by the same employer for the full tax year should be marked F.D.S. on the face.

Submission of Income Tax Returns (FORMS ITF 1)

All those employees who:-

1. Terminate employment during the year of assessment;
2. Change employment during the year;
3. Work part time at the same time being fully employed by another employer;
4. Start employment during the course of the year;
5. Receive pensions;
6. Are executors/ executrix of deceased estates and
7. Are in receipt of income which is not subject to P.A.Y.E.

Are required to submit (FORMS ITF 1).

NB. The Commissioner General will notify all employees who are required to submit ITF 1 return by notice in the press. This notice is usually published in first quarter of each year.

Who should not submit returns of Income Tax Returns?

All those employees whose income consists of employment income only and whose employer was directed to administer P.A.Y.E. under the Final Deduction System (F.D.S.) system and did so during the year concerned, and the employee was in continuous employment with the same employer for the whole year.

The Zimbabwe Revenue Authority (ZIMRA) encourages churches and other religious organizations to review their tax affairs and make voluntary disclosures where there is any income omitted from returns submitted or where there are any tax obligations that the taxpayer may not have complied with.  The intention is to encourage voluntary compliance from churches and other religious organizations and avoid being charged penalties, which affects business operations.

Churches and other religious organisations who omitted or failed to declare any amounts of income on returns submitted should make a voluntary disclosure. The following circumstances require churches and religious organizations to pay tax.

Income Tax on business profits

This tax is payable on business profits, that is, income derived from or deemed to be from a source within Zimbabwe. The receipts and accruals of church or religious organizations are exempt from Income Tax only to the extent of donations, tithes, offerings or other contributions by its members. Incomes from other activities such as selling of items such as reading materials, wristbands, renting out properties and others are subject to Income Tax.

Employees’ Tax (PAYE)

Every person who becomes an employer is required to register for Pay As You Earn (PAYE) within 14 days of becoming an employer. A church may qualify as an employer if it pays any type of remuneration such as salary, wage, allowance, among others, to its employees who administer church activities. In this case the organisation is required to deduct the correct PAYE every month according to the tax tables and remit it by the 10^th of the following month.

Value Added Tax (VAT)

This is an indirect tax levied on goods and services. Churches or religious organisations may qualify to register for Value Added Tax (VAT) if the total value of taxable supplies made in the period of twelve months exceeds $60, 000.  VAT payable should be remitted to ZIMRA by the 25^th of the following month. Church organisations are not exempt from the payment of VAT when they purchase goods or services which are subject to VAT.

Withholding Taxes

There are a number of Withholding Taxes chargeable in terms of the Income Tax Act. Examples are Non-Residents Tax on Fees, Non-Residents Tax on Royalties, Non-Residents Tax on Remittances and Withholding amounts payable under contracts. A church or its paying agent is expected to withhold the tax and remit it to ZIMRA in cases where a payment is made. Withholding taxes are supposed to be remitted by the 10^th of the following month after payment or a deemed payment is made.

Reminder for VAT Due Date

Our valued clients are hereby reminded that the VAT for the month of October 2018 is due on or before the 25th of November 2018.