Tax and ZIMRA requirements

The Companies Registry doesn’t  automatically notify the Zimbabwe Revenue Authority (ZIMRA) when a company is registered, therefore as soon as your business has been set up, you should register with ZIMRA for your tax obligations.

All companies must register for and meet their tax obligations to ZIMRA on all forms of taxable income – this includes Income Tax and Value Added Tax (VAT). As soon as you register for income tax you are issued a BP number and a tax clearance.

Registration

The trading status of all registered companies is either ‘active’ or ‘dormant’. If your company is not carrying on any form of business activity, it is dormant. If your company is trading, it is considered ‘active’ for income tax purpose and it must be registered with ZIMRA within 30 days of any form of business activity taking place. ‘Business activity’ can mean any of the following:

• Selling goods or providing services with a view to making a profit.
• Buying goods and services.
• Leasing or purchasing land or property.
• Receiving income from rental property or sales.
• Managing investments – buying shares in another company and receiving dividend payments.
• Issuing dividend payments to shareholders.
• Earning interest.
• Employing staff and operating payroll.
• Paying directors’ salaries.
• Advertising your products and services
• Paying accountancy fees through a business bank account.
• Any other significant accounting transactions (monies spent or received) that must be entered into your company’s accounting records.

Some of Actux Consultancy’s  Private Limited Company Packages and Private Business Corporation Packages have tax clearances and we can help you to register for tax and acquire your tax clearance.

Requirements for tax registration and tax clearance

Company documents

1. Certificate of Incorporation;
2. CR 6 (Former CR14) which contains details of directors
3. CR 5 (Former CR6) which contains registered address of the company.
4. Company’s stamped current Bank Statement.
5. Memorandum of Association (1st 3 pages plus the last signed page)
6. Articles of Association (1st 3 pages plus the last signed page)

Directors documents

• Certified copies of directors I.D’s/Passport.
• Director’s email addresses and phone number.
• Proof of residence for every director in form of utility bill supported with an affidavit if not in the bill is not in the director’s name.
• Stamped current personal bank statement of one Zimbabwean director.

Tax heads

Every registered client is required to submit a tax return after the end of each tax year by 30 April of the following year. The tax year runs from 1 January to 31 December of each year.

Some business operators are required to pay Presumptive Taxes and this includes operators of omnibuses, taxi-cabs, driving schools, goods vehicles, hairdressing salons, informal traders, operators of restaurants or bottle stores, small scale miners, cottage industry operators, operators of commercial waterborne vessels used for the carriage of passengers for profit and fishing rigs.

Any person who trades in taxable supplies and whose annual taxable turnover exceeds or is likely to exceed US$1,000,000.00 must apply to register for VAT. The submission of VAT returns and payment of the tax due is the 25th of the month following the end of the tax period.

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

Remittance of Pay As You Earn (PAYE) to ZIMRA is to be done within 10 days after the end of the month during which the amount was withheld.

You are required to keep reasonable and proper records and books of accounts for all and all other documents required to be accounted for in terms of the various Acts administered by ZIMRA. Retain all records for at least six (6) years.