A Quick Guide to Standards Development Fund (SDF) Registration in Zimbabwe.
The Standards Development Fund (SDF) is a statutory fund established by the Ministry of Industry and Commerce under the Standards Development Fund Act [Chapter 14:19]. It is a critical component of Zimbabwe’s push for quality and competitiveness in industry.
Unlike a grant application for a specific project, “SDF Registration” primarily refers to an employer registering for and complying with the mandatory SDF Levy.
What is the SDF and the Levy?
The SDF’s overall mandate is to develop and promote the standardization of commodities and services in Zimbabwe. The revenue collected funds key institutions like the Standards Association of Zimbabwe (SAZ), Scientific and Industrial Research and Development Centre (SIRDC), and Trade Measures.
The Obligation (The Levy)
- Rate: The SDF is funded by a mandatory levy of 0.5% (half a percent) of an employer’s total gross remuneration (wage bill) paid to employees.
- Who Pays: All employers in Zimbabwe, with few exceptions, are liable to pay the SDF Levy.
- Remuneration Definition: The gross remuneration includes salaries, wages, cash in lieu of rations, bonuses, various allowances (housing, transport, etc.), commission, and the value of benefits in kind.
- Payment Frequency: The levy is remitted monthly, with payment typically due on or before the 10th of the following month.
Registration and Compliance Process
For a newly established business that employs staff, compliance with the SDF Levy is integrated into the general tax registration process.
Calculation and Remittance
Calculation: Calculate 0.5% of your company’s gross monthly payroll.
Essential Registration Requirements.
To register for the levy or to update company records with the Ministry of Industry and Commerce, you typically need to provide basic company information:
- Name of the Company
- Physical and Postal Address
- Contact Person and Details
- Nature of Business
- Number of Employees and the Gross Wage Bill
Why Compliance is Key
Paying the SDF Levy is more than just a tax obligation—it is a mandatory compliance requirement for doing business in Zimbabwe.
Business Operations: Without a SDF registration, a business cannot legally participate in public tenders/procurement or obtain/renew necessary import/export licenses.
