As a new trader what are my tax obligations to ZIMRA?

New businesses are obliged to register with ZIMRA within 30 days of commencing business. ZIMRA registration requirements are explained on this article https://lucent.co.zw/how-to-register-with-zimra/tax/.

Tax heads obliged to register.

Income Tax.

Individuals, companies, partnerships and cooperatives venturing into any business are required to register for income tax.

Requirements for Taxpayers registered for Income Tax.

• Submit ITF12C return each year.
• Submit ITF12B on on Quarterly Payments dates (QPD’s).
• Pay Provisional Tax on Quarterly Payments dates (QPD’s).
• Provisional tax should be paid as below

• Withhold 30% in accordance to Section 80 of Income Tax Act for taxpayers not in possession of a valid Tax Clearance certificate, https://lucent.co.zw/what-is-30-withholding-tax-on-tenders/tax/.
• Keeping accounting records for a period of at least six (6) years after the tax period to which the period relates.

Pay As You Earn (PAYE)

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

Requirements for Taxpayers registered for PAYE.

• Pay PAYE withheld to ZIMRA
• Submit P2 returns on the 10th of each month.
• Submission of the ITF 16 return within 30 days after the end of the year.
• Keeping accounting records for a period of at least six (6) years.

Value Added Tax (VAT)

Any person who trades in taxable supplies and whose annual taxable turnover exceeds or is likely to exceed US$40,000.00 must register for VAT.

Requirements for Taxpayers registered for VAT.

• Calculating and remitting the VAT due on or before the due date.
• Completing and submitting VAT 7 return.
• Issuing tax invoices for any taxable supply.
• Comply with fiscalisation regulations.
• Keeping accounting records for a period of at least six (6) years after the tax period to which the period relates.
• Advising ZIMRA of any change in business details, including address, addition of/or change of partner, cessation of trade.
• Allowing ZIMRA officials to enter your business premises and examine goods and all business records.

Customs and Excise

In the event that you intend to import goods, you are still required to have registered with ZIMRA so that you have the BP number that will identify you as an importer.

Requirements for Taxpayers registered for Customs & Excise.

• Keep reasonable and proper records and books of accounts.
• Maintain records of all the bills of entry, bills of lading, rail notes, invoices.
• Retain all records for at least six (6) years.