Zimra Registrations

All clients, including individuals, companies, partnerships and cooperatives who want to venture into any business are required to register with ZIMRA online and comply with all obligations as stipulated in the legislation. To register, clients are required to have a bank account among other requirements.

After commencing operations, clients are required to keep records of all their business operations and pay Provisional Tax on the stipulated dates. The dates are referred to as Quarterly Payment Dates (QPDs). The Provisional Tax payable is based on the respective percentage of estimated annual tax due. The annual estimated tax due should be revised to update the estimate every quarter. The form ITF 12B, which is a return for provisional tax payments, has to be completed in respect of these payments.

Every registered client is required to submit a tax return after the end of each tax year. The tax year runs from 1 January to 31 December of each year. All the clients are now on Self-Assessment and are required to furnish Self-Assessment Returns in duplicate by 30 April of the following year.

Operators will require a Tax Clearance Certificate – form ITF 263 which is issued by ZIMRA once they have met all the stipulated obligations which include submission of tax returns and remittances of tax due. Failure to have a Tax Clearance certificate results in the deduction of 10% of the amount payable.

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.

Responsibilities upon registration include:

• Keeping accounting records for a period of at least six (6) years after the tax period to which the period relates.
• Completing and submitting VAT returns online (e-filling) even if you do not owe ZIMRA. ZIMRA will advise you of the frequency of submitting the returns though most clients submit returns either monthly or after every two months.
• Calculating and remitting the VAT due to the Commissioner on or before the due date.
• Issuing tax invoices for any taxable supply whose value is more than US$10.00.
• Record transactions electronically. With effect from 1st of October 2011, all registered operators are also expected to comply with fiscalisation regulations. This is a requirement where all registered operators under “All” VAT categories are expected to record transactions electronically.
• Advising ZIMRA of any change in business details, including address, addition of/or change of partner, cessation of trade, etc.
• Allowing ZIMRA officials to enter your business premises and examine goods and all business records.

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

The employer can access relevant tax deduction tables and obligations of an employer on our website and on the Zimra website.

Some of the obligations include:

• Calculation and deduction of PAYE in accordance with the tax deduction tables
• Remittance of PAYE to ZIMRA within 10 days after the end of the month during which the amount was withheld. Please note that with effect from 1st September 2010, the remittance of PAYE was moved from within 10 days after the end of the month during which the amount was withheld.
• Keeping accounting records for a period of at least six (6) years.
• Submission of the ITF 16 return which contains details on annual earnings, deductions, credits and PAYE for each employee within 30 days after the end of the year.

You will note that failure to withhold any amounts which you are required to withhold renders you liable to the amounts due as well as penalties and interest. Observing these basic requirements will assist you in running your business professionally and helps avoid the anxiety and stress associated with noncompliance and having to pay arrears, interest, fines and penalties.