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The Tax and Revenue Management System (TaRMS) is a new system that has developed for implementation by the Zimbabwe Revenue Authority (ZIMRA) for all tax administration and revenue management. The system is set to replace the current ZIMRA E-services and E-taxes platforms on the 12th of October 2023.

The ZIMRA e-services platform has for long been associated with inconvenience to taxpayers and has been affecting tax compliance. It is only recently that the system has been complemented by the ZIMRA e-taxes platform which supports the submission of returns in both ZWL and foreign currency. However the Zimbabwe Revenue Authority went further to develop a new system in a bid to further simplify and enhance tax compliance.

Using the new system (TaRMS) the taxpayers will be able to seamlessly and efficiently process, on any device, taxpayer registration or reregistration; filing and returns processing; payments; refunds among other processes. The system will also be integrated with enterprise Bus, ASYCUDA, SAP-FI, Registrar of Companies, Deeds & Intellectual Property, Civil Registry, and Banks.

The system has various advantages over the current system including but not limited to;

• Elimination of overpayments since the system recognizes that payments are based on returns submitted
• Elimination of tax payment mis-posting (payments made to wrong tax contract accounts)
• Improved convenience in tax payment as a single payment can be made to cover various tax obligations for different tax heads
• Easier tax submissions for improved convenience
• Tax submission and payment reminders for outstanding tax returns and tax payments
• Automatic taxpayer registration for all new entities
• Taxpayer can update master data through the self service portal without need for additional human intervention.

As we brace the rollout of the new system it is important that all taxpayers update their master data particularly their bank details and master data emails as well as their public officers. Business partner numbers will be replaced by taxpayer identification numbers (TINs) and these shall be sent to all registered taxpayers through their respective master data emails.

It is important that all taxpayers update their master data before the 12th of October when TaRMS is scheduled for rollout. ZIMRA’s current position is that the current e-services and e-taxes platforms will be discontinued on the 12th of October when the new system takes over. More information on TaRMS shall be released through ZIMRA public notices

For more information please do not hesitate to contact the Zimbabwe Revenue Authority. For professional tax consultancy including tax planning, tax computations, tax returns as well as tax secretarial services including tax master data update please do not hesitate to contact sabarm Business Solutions

In terms of  Section 61 of the Income Tax Act [Chapter 23:06] every company which carries on a trade or has an office or other established place of business in Zimbabwe shall at all times be represented by an individual residing. Upon registration with the Zimbabwe Revenue Authority (ZIMRA) for tax purposes, the taxpayer is required to appoint a public officer to represent them for all tax related issues.

• The public officer shall be a person approved by the Commissioner and shall be appointed by the company or by an agent or legal practitioner who has authority to appoint such a representative for the purposes of this Act. This means that only the company’s directors or shareholders can appoint a Public officer
• The public officer shall be appointed within one month from the establishment of such office or other place of business.
• A notice should be made to the commissioner specifying the name of the public officer and an address for service or delivery of notices and documents
• All companies are required to have a public officer at all times

Role of the Public Officer

• Receive all communications from ZIMRA including every notices, processes or proceedings which may be given, served upon or taken against the organization, made to the attention of the Public Officer.
• A public officer can be an agent of such company, a person acting or appearing to act in the management of the business or affairs of such company.
• Anything done by the public officer while acting for the company is deemed done by the company which he/she represents. That is, Public Officer is answerable for any omission or commission done or to be done by the company in terms of the tax law.
• Every Public Officer shall be answerable for the doing of all such acts, matters or things as are required to be done by a taxpayer under the Income tax Act. In case of default by a taxpayer the public officer is also liable to the penalties.
• Public Officer acts as the voice or representative of the taxpayer/company/organization regarding tax matters and represents the company in any meetings with ZIMRA.

ZIMRA Requirements for registration of public officers

• Letter of appointment as public officer, stating the full name, identity number (ID) number, residential address and a statement to the effect that the public officer is a signatory to the company’s bank account
• Proof of residence in form of utility bills, support with affidavit if not in your name
• Certified copies of identity documents for Public Officer/ Representative.

Change of Public officers 

Change of public officer is done through the ZIMRA form REV 2 (change of details/application of additional revenue heads form). It is always important to have a public officer in the system as ZIMRA only communicates with public officers on important tax issues and cannot issue e-services pins or change the master data emails without a public officer for the account of the company.

In terms of the 2023 Budget statement there was an emphasis on the obligation of taxpayers to register with the Zimbabwe Revenue Authority (ZIMRA) for tax purposes. All taxpayers are mandated to register with ZIMRA within 30 days of being incorporated. This is in terms of the Income tax Act and failure to comply with this provision attracts a penalty of USD $30 per day. This means that for each day that a taxpayer was supposed to be registered but failed to do so, a penalty automatically becomes due and payable at a rate of USD$30 per day.

Tax registration is therefore an important facet of operating a business legally in Zimbabwe. Registration with the Zimbabwe Revenue Authority is very easy when you are working with the right people. At Sabarm Business Solutions the process is made very convenient and efficient and immediately after registration we also offer post tax registration support services where we offer companies tax services such as tax planning, tax computations, tax return preparation, tax return submission, tax clearance generation, tax clearance renewal as well as tax audits and other tax services.

It is mandatory for all companies to register for tax and failure to do so means that the business is in breach of the law incurring penalties each day it is in breach. However these penalties are totally avoidable by just complying with the law.

The Zimbabwe Revenue Authority has introduced the E-taxes platform for the convenience of taxpayers. This system is currently working parallel to the E-services platform. The system was introduced to mitigate against the compliance costs associated with submission of returns and as a mitigating measure against technical challenges being faced by taxpayers, especially with the E-Services online filing platform. The system is also convenient as it supports the submission of returns in ZWL and in USD.

The functions of the E-Taxes platform

• Submission of tax returns
• Viewing of tax submissions

The system is also being developed to be able to help the taxpayer view their compliance status and send the taxpayer their tax clearance certificate to their master data email. One may wonder who is eligible to register on the E-Taxes platform? Fortunately, Every taxpayer who is registered with the Zimbabwe Revenue Authority is eligible to register on the E-taxes platform and enjoy this convenient system. The registration on this process is much like that of the e-services platform with the exception that with the E-taxes system does not require secondary approval from ZIMRA since the taxpayer will already have been registered for tax.

What is required to register for E-taxes?

• Taxpayer’s Registered  Business Partner Number (BP Number)
• Taxpayer’s registered email (master data email)
• Full Name of Public officer
• Cell number

The E-taxes is currently working parallel to the E-services platform and offers the option to submit tax returns in multi currency. The incidence of failed returns using this system is minimal and with the system still undergoing continuous improvement, the submission of tax returns is bound to be even more convenient.

Did you know that the rate of VAT has now changed from the 14.5% which was prevailing, to 15% which is effective from 1 January 2023. This change in VAT means that all transactions have to be treated accordingly and the change prompts an adjustment of fiscal devices so that the VAT is charged correctly. All VAT registered operators are mandated to comply with this directive.

With regards to VAT for registered operators in Category A (period Dec-Jan) the VAT for the period 23A1 comprises of months in which VAT was charged at different rates. The Zimbabwe Revenue Authority has therefore directed that the return be split into two with the one for the month of December being submitted manually while the one for the period January 2023 being submitted using the E-filing or E-taxes platform.