Quarterly Payment dates – QPDs

Quarterly Payment dates – QPDs

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?

QPDs are quarterly payment dates and these are the dates throughout the year on which tax is paid. Tax is paid provisionally and the provisional Tax payable is based on the respective estimated annual tax due. The ITF 12B form, which is a return for provisional tax payments, has to be completed in respect of these payments.
The quarterly payment dates and the percentage of tax due for each tax year are as follows.
1st QPD -25th March-10%
2nd QPD – 25th June -25%
3rd QPD- 25th September -30%
4th QPD-20th December -35%
Do not fear ZIMRA registration, stay compliant and avoid breaching the law. Contact Sabarm today and let us handle all the tax issues while you focus on running your business.

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