Most people shy away from registering with ZIMRA for fear of paying taxes. In as much as businesses which are registered with ZIMRA are liable to pay taxes, it is important to note that it is the obligation of all businesses to pay taxes and failure to do so would be a breach of law in terms of the Income tax Act. Most people also have the misconception that once you are registered with ZIMRA you are now supposed to pay taxes whether you make a profit or not. Contrary to this widely accepted notion, that is not the case. Tax is charged on profits and therefore if you are not trading or if you are not making any profit there is no tax that is paid by your company.
Another misconception is that tax is paid all at once to ZIMRA. However this again is false. Did you know that tax is not paid all at once? Yes, contrary to most perceptions, tax is actually paid in bits as the year progresses. Tax is paid in percentages throughout the year on what are referred to as quarterly payment dates (QPDs).
What are QPDs?