The Standards Development Levy (SDL) in Zimbabwe is a mandatory levy for certain employers, established under the Standards Development Fund Act [Chapter 14:19]. Unlike taxes collected by ZIMRA (like VAT or PAYE), the SDL is administered by the Standards Development Fund (SDF), which falls under the Ministry of Industry and Commerce (MOIC).
Here is a breakdown of the requirements for registering and complying with the Standards Development Levy.
1. Obligation to Register (Who Pays).
The obligation to register and pay the SDL is tied to being an Employer.
-
Levy Payer: All employers in Zimbabwe (individuals, companies, partnerships, etc.) who pay remuneration to employees are generally liable to pay the Standards Development Levy, with very few exceptions.
-
Purpose: The levy is collected to fund institutions like the Standards Association of Zimbabwe (SAZ) and SIRDC, which are involved in developing and promoting the standardization of commodities and services in the country.
-
Rate: The levy is currently set at 0.5% (half a percent) of the employer’s total gross remuneration (wage bill) paid to employees.
2. Key Registration Requirements
“SDL Registration” typically refers to the process of providing your company’s information to the SDF/Ministry of Industry and Commerce to ensure compliance. For a new business, this compliance is often integrated into the general company and tax registration process.
To register for the levy, a business is generally required to provide the following essential company and payroll information to the Ministry of Industry and Commerce:
| Requirement Category | Specific Details Required |
| Company Information | * Name of the Company/Business Partner. |
| * Physical and Postal Address of the company. | |
| * Nature of Business (e.g., manufacturing, retail, services). | |
| * Date Started Operations. | |
| Contact Person | * Full Name and Contact Details (phone, email) for the person responsible for the SDF levy compliance (e.g., the Public Officer, HR/Finance Manager). |
| Payroll Information | * Number of Employees. |
| * Details of the estimated or actual Gross Wage Bill (remuneration). |
Note on ZIMRA Registration: While the SDF is separate from ZIMRA, a new business should first complete its ZIMRA Business Partner (BP) registration, which includes registering for PAYE (Pay As You Earn) if it has employees. This establishes the necessary legal business identity for all other levies.
3. Calculation and Payment Obligations
| Aspect | Requirement/Details |
| Basis of Calculation | 0.5% of the total gross remuneration paid to employees. |
| What is Remuneration? | This is broadly defined to include: Salaries, wages, cash in lieu of rations, bonuses, various allowances (housing, transport, cost of living), commissions, leave pay, and the value of benefits in kind. |
| Payment Frequency | The levy is generally payable quarterly, with payments due on: 15th April, 15th July, 15th October, and 15th January of every year (in arrears for the preceding quarter). |
| Payment Currency | If the wage bill is paid in foreign currency (e.g., USD), the levy must be paid in that foreign currency. If the wage bill is mixed, the levy must be paid pro-rata. |
| Proof of Payment | The SDF Levy Receipt is a crucial compliance document. |
4. Importance of Compliance
Compliance with the SDF levy is critical for broader business operations in Zimbabwe:
-
Public Tenders: Failure to pay or be registered with the SDF can disqualify a business from legally participating in public tenders or procurement processes.
-
Import/Export Licenses: The Ministry of Industry and Commerce typically requires a copy of the Standards Development Fund levy receipt when a company applies for or renews necessary import or export licenses.
-
Penalties: Failure to pay the levy by the due date results in a surcharge (penalty) equivalent to 10% of the levy due.
In summary, the key requirements are being an employer, having a functioning payroll system to calculate the 0.5% levy on gross remuneration, and actively submitting payments to the Standards Development Fund, usually as a requirement integrated into the larger company statutory compliance cycle.
