Presumptive tax legislation

Presumptive tax legislation

Tax
Presumptive tax legislation was introduced to broaden the revenue base in view of the increase in informal business activities. Selected sectors of the economy were targeted to ensure the participation of informal businesses in tax payment. Self-employed professionals presumptive tax With effect from January 1, 2021 there was a new insertion on the sectors that pay presumptive tax. This insertion added professionals to the lists of categories subject to presumptive tax. The presumptive tax is paid by self-employed professionals who would not have submitted income tax returns for the previous year of assessment. Self-employed professional is an individual who earns income, on his or her own account or as a member of a partnership, as: a) an architect registered or required to be registered under the Architects Act (Chapter 27:01);b)…
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Gender mainstreaming in taxation vital to development

Gender mainstreaming in taxation vital to development

Tax
AS the quest for gender equality continues to gain momentum, there is increasing realisation that gender equality is not only a basic human right. Rather, its achievement has enormous socio-economic ramifications as empowering women has a catalytic impact towards thriving economies, spurring productivity and growth. Curtains come down on International Women’s Month commemoration today, that was themed “#ChooseToChallenge” as women continue to fight for equality in the corporate world as well as in other spheres of life. Since the early 1970s, there have been several developments on gender equality. Among the notable was the United Nations General Assembly adoption of the Convention on the Elimination of all forms of Discrimination Against Women (CEDAW) in 1979 and the 1995 Beijing Platform for Action. In 2015 we had the UN’s Sustainable Development…
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Tax concession for the elderly

Tax concession for the elderly

Tax
Persons aged 55 years or above are considered as elderly persons for Income Tax purposes and they are eligible to a number of tax concessions. Tax concessions for the elderly provide relief either by reducing the tax payable or removing the tax altogether. Such concessions are in the form of exemptions or credits and are provided for in the Income Tax Act (Chapter 23:06), the Finance Act (Chapter 23:04) and the Capital Gains Tax Act (Chapter 23:01). The following tax concessions are applicable to elderly persons: Rental income The rental income accruing to an elderly person who is over fifty-five years in the year of assessment, up to a maximum amount of $120 000 per annum, is exempt from Income Tax. The amount remaining after the exempt portion will be…
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Govt unveils forex income tax bands

Govt unveils forex income tax bands

Tax
The income tax bands for those earning in foreign currency and so required to pay income tax in that currency have been gazetted, with a tax free threshold of US$70 a month and the top 40 percent tax rate applied to those earning more than US$3 000 a month or US$36 000 a year. This comes as Finance and Economic Development Minister, Professor Mthuli Ncube, indicated in his 2021 national budget that Treasury will levy taxes in foreign currency on businesses that were trading in hard currency. Treasury seeks to have its tax structure reflect what is happening in the economy. By law, all income in foreign currency has to be taxed in foreign currency. Companies and individuals have to bank foreign currency and local currency income separately and keep…
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Submission of tax returns on employment income

Submission of tax returns on employment income

Uncategorized
Employers are required to extract from their payrolls the ITF 16 return and submit to ZIMRA by 30 January 2021. The ITF16 is the return for employment income which is based on remuneration received and accrued in 2020. Please note that 2020 year of assessment has two tax periods; January to July and August to December. Separate ITF16 returns must be submitted for the two periods. The returns for the two periods are submitted in: (a) Zimbabwe dollars for remuneration received and accrued in Zimbabwe dollars; and (b) Foreign currency for remuneration received or accrued or deemed received or accrued in foreign currency for purposes of determination of PAYE. The ITF16 should include but not limited to the following information: Employee number;National Registration number of employee;First name;Surname;Salary;Bonus;Gratuity;Other income earned;Pension deductions;Membership…
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Tax break for solar investors

Tax break for solar investors

Tax
INVESTORS who will participate in the generation of solar power in the country are set to enjoy a five-year tax holiday with those importing gadgets used for generating solar exempted from paying customs duty. Zimbabwe doesn’t have enough electricity to cover the entire country hence the need for alternative forms of energy like solar power. The country requires an additional 9 000MW to support economic activities that will drive the country towards achieving an upper middle-income economy by 2030. The country’s demand for power hovers around 2 000MW. However, due to ageing equipment, existing power plants are generating far below the national requirement. Responding to questions in Senate last Thursday, Energy and Power Development Minister Zhemu Soda said it is not possible to connect every area to the national grid…
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ATAF launches Women in Tax Network to promote gender equality

ATAF launches Women in Tax Network to promote gender equality

Tax
THE African Tax Administration Forum (ATAF) has launched a Women in Tax Network, an initiative aimed at increasing the role of women in taxation and their contribution to national economies in the region. The establishment of the network is significant as Africa works towards meeting the UN’s Sustainable Development Goals, as part of Agenda 2030 for Sustainable Development with gender equality as a goal enshrined in SDG number five. Taxation and gender equality have strategic importance to developing countries in general, and Africa in particular. Both tax and gender equality occupy prime position in the development agendas of nations, hence the need to ensure equal opportunities for both male and female. “Mainstreaming gender equality is essential in the development and review of tax policies and administration, as the former supports…
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VAT, income tax for non-resident digital service firms

VAT, income tax for non-resident digital service firms

Tax
All non-resident digital service providers are now required to pay value added tax (VAT) and income tax at rates of 14,5 percent and 5 percent respectively, according to latest information from the Zimbabwe Revenue Authority (Zimra). Specifically, VAT is at 14,5 percent of the invoiced amounts, while income tax is 5 percent of the gross receipts. Zimra head of corporate communications Francis Chimhanda said the tax is applicable to all non-resident digital service providers. “The tax is applicable to all non-resident suppliers of digital services to Zimbabwe as follows: Every person who provides services as a satellite broadcasting service or provides or delivers goods and services as an electronic commerce operator which receives revenues in excess of five hundred thousand United States dollars (US$500 000) in any year of assessment…
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Companies tax, VAT top 2020 net revenue collections

Companies tax, VAT top 2020 net revenue collections

News, Tax
ZIMBABWE’s annual net revenue collections grew by 6,22 percent to ZWL$182,59 billion last year underpinned by fiscal and monetary measures that ushered in the much-needed stability and enhanced businesses viability. The major contributors to the tax revenues were companies with $34,132 billion, followed by VAT at $33,519 billion and individual income tax contributions at $28,438 billion. Excise duty brought in $25,824 billion and customs duty $14,573 billion. The Zimbabwe Revenue Authority (Zimra) had projected annual net revenue collections of ZWL$171,90 billion in 2020. In a revenue performance report for the quarter ended December 31, 2020, the tax collector also posted an 8,44 percent rise in net revenue for the fourth quarter recording ZWL$91,51 billion. “The authority collected net revenue of $182,59 billion against a target of ZWL$171,90 billion for the…
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E-services password reset on ZIMRA portal

Uncategorized
Most taxpayers face challenges in resetting their passwords for e-services on ZIMRA portal. Detailed below are steps to follows. Kindly use the following Forgot/ Reset Password procedure and check for the default password in inbox or trash/junk folder: Visit the ZIMRA portal page on internet by typing http://efiling.zimra.co.zw on the internet browser and log-in to ZIMRA e-Services Portal Click on the “Forget Password” option, forgotten Password screen will come upEnter your email and Captcha (code for the image)Click on “Submit” and the security question which you provided on registration screen will comeEnter the correct answer to the security question which you provided on registration and click on “Submit”A default password will be sent to the email stated on initial application,Use the default password to log in and you will be…
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