What is a Tax Clearance Certificate (ITF263)?
A tax clearance certificate also known as an ITF263 certificate, is a certificate by Zimbabwe Revenue Authority (ZIMRA). It shows that the business is compliant with tax laws.
Why is the Tax Clearance Clearance Certificate important?
Businesses do not operate in vacuum,as the taxpayer interacts with other businesses, tax clearances improve the taxpayer’s compliance profile. Listed below are advantages of having a valid tax clearance certificate.
- When payments are made for goods and services, no 30% withholding tax is deducted.
- No Presumptive tax is levied when importing goods.
- Most tenders require a valid tax clearance when bidding.
- When applying for local authority licenses, a Tax Clearance Certificate is mandatory.
- Businesses are comfortable doing business with compliant taxpayers.
Requirements to obtain a valid Tax Clearance Certificate?
- Register with ZIMRA.
- Submit returns on time.
- Pay your tax on time.
- Make payment plan on overdue tax.
You want to know about 30% withholding tax, https://lucent.co.zw/what-is-30-withholding-tax/tax/
Businesses behind with their returns can approach us for assistance.
