Withholding Tax on Tenders.
Withholding tax on tender is a tax which is deducted by payer from suppliers without a valid tax clearance certificate. The tax is guided by Section 80 of Income Tax Act.
What percentage is withholding tax on tenders in Zimbabwe?
Withholding tax on tenders is levied at a rate of 30%. The threshold is an aggregate of ZWL130,000.00 or US$1,000.00 during the year of assessment effective 1 January 2022.
When to withhold the Withholding Tax on tenders?
Withholding tax withheld on payment, not on the time of receiving an invoice. The payer should withhold 30% and remit to ZIMRA on or/ before the 10th of every month on a REV 5 form.
Who are exempted from Withholding Tax on tenders?
The following are exempt from the 30% withholding tax
- Payments made to employees
- A sale effected in any shop in the ordinary course of the business.
- Contracts for the purchase of auction or contract tobacco in terms of which tobacco levy may be required to be withheld.
- Tax payments and any delict claim against the State.
- Payment of taxes to Zimra.
- Payments to non-resident persons in respect of fees, royalties and remittances.
