In Zimbabwe, staying compliant with the taxman is no longer a manual, paper-shuffling marathon. With the introduction of the Tax and Revenue Management System (TaRMS), getting your ZIMRA Tax Clearance Certificate (ITF263) has shifted from a “request-based” process to an “automatic” reward for being a good taxpayer.
We have compiled everything you need to know about the 2026 ZIMRA Tax Clearance renewal process, its importance, and how you can stay compliant.
1. What is a Tax Clearance Certificate (ITF263)?
A Tax Clearance Certificate, popularly known as the ITF263, is an official document issued by the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA). It serves as formal proof that a person or a business entity is tax-compliant and has satisfied all their tax obligations for a specific period.
2. Who Should Have a Tax Clearance?
Any person or entity carrying out business in Zimbabwe should have a Tax Clearance Certificate. This includes:
-
Companies / Corporates
-
Private Business Corporations (PBCs).
-
Small to Medium Enterprises (SMEs).
-
Sole Traders and Individual Entrepreneurs.
-
Professionals (such as architects, engineers, and surveyors) who require it for annual licensing.
-
Newly Registered Businesses that intend to trade with other formal organizations.
3. Why is it Important to Have a Tax Clearance?
The primary importance of the ITF263 is to facilitate trade. In Zimbabwe, the law requires any business making a payment to another business to withhold 30% Withholding Tax if the payee does not have a valid Tax Clearance. Essentially, without this document, you lose nearly a third of your gross revenue on every transaction over the statutory threshold.
4. Advantages of Having a Tax Clearance
Beyond avoiding the 30% deduction, having a valid certificate offers several strategic business advantages:
-
Avoid Withholding Tax: You receive the full amount of your invoices without the 30% deduction.
-
Tender Eligibility: It is a mandatory requirement for bidding on government and private sector tenders.
-
Business Credibility: It signals to partners and banks that your business is legitimate and financially responsible.
-
Import Benefits: It eliminates the need to pay Presumptive Tax at the border when importing goods for business purposes.
-
Licensing: It is a prerequisite for obtaining or renewing various operating licenses from local authorities.
5. Who Issues it and How is it Issued?
The Zimbabwe Revenue Authority (ZIMRA) is the sole authority that issues the ITF263.
How ZIMRA Issues Tax Clearance in 2026
Under the new TaRMS system, ZIMRA has moved toward “Dynamic Compliance.” Here is the current reality of how it is issued:
-
Automatic Generation: You no longer “apply” for a certificate in the traditional sense. The system automatically generates the certificate for taxpayers who meet the compliance criteria.
-
System Download: Once the system confirms you are compliant, the certificate is issued successfully and you can download.
-
Real-Time Monitoring: In 2026, many clearances are issued with a shorter validity period (sometimes monthly). The system re-evaluates your status constantly—if you miss a return or a payment, your status flips to “Non-Compliant,” and the certificate is withheld.
6. How to Renew Your Tax Clearance Online
To ensure your 2026 Tax Clearance remains active or is “renewed” automatically, follow these steps on the ZIMRA TaRMS Self-Service Portal:
-
Claim Your TIN: If you haven’t already, ensure you have claimed your Taxpayer Identification Number (TIN) on the TaRMS portal.
-
File All Returns: Ensure all tax heads (VAT, PAYE, Income Tax, etc.) have their returns submitted on time. Even “NIL” returns must be filed if you haven’t traded.
-
Clear Outstanding Debts: Pay all principal taxes, interest, and penalties. Even a small residual balance of interest can block your certificate.
-
Fiscalization: Ensure your fiscal devices are interfaced and communicating with ZIMRA’s servers (FDMS) daily.
Note: If you are compliant, you can log in to the portal and download it manually under the “Tax Clearance” tab.
Are you having issues with Compliance?
Reach out to us
