The Tax and Revenue Management System (TaRMS)

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


Public officers for tax purposes

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.

Tax Registration in Zimbabwe

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.

ZIMRA E-taxes platform

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.

Change in VAT Rate for 2023

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.

Zimra- Withholding Tax (WHT) in Zimbabwe

WHT is in terms Section 80 of the Income Tax Act (Chapter 23:06) and in terms of the same section, a 30% withholding tax is deductible from all amounts payable to all persons who enter into contracts without a valid tax clearance certificate (ITF 263). [Section 80 (2)]

This applies to persons who enter into contracts with the State or a statutory body, a quasi-Government institution and taxpayers who are registered with the Zimbabwe Revenue Authority.

Failure to withhold tax as mandated by the Act is an offense at law. It is important to register with ZIMRA and comply with the tax laws and obtain a valid tax clearance certificate to avoid the 30% WHT on contracts.

Where a trader has withheld any amount in terms of subsection (2) of the Act, he shall furnish the payee concerned with a certificate, in a form approved by the Commissioner, showing the amount so withheld. It is an offense to withhold tax and then fail to remit the tax so withheld to ZIMRA. Withholding tax returns therefore have to be filed and the tax withheld has to be remitted.

It is important to comply with WHT legislation as failure to do so has punitive implications. Sabarm is there to make sure that your company is compliant in all tax matters. The Sabarm Total Tax package is the solution to all your tax matters.

How to Change Company Name in Zimbabwe

Did you know that you can change your company if you no longer desire to use it for any reason. A company or private business corporation that wishes to change its name should first obtain the written approval from the Registrar. This is in terms of section 26 of the Companies and Other Business Entities Act Chapter [24:31]. The process is a bit lengthy but with the right professionals handling it for you its very easy. the following are the steps for changing the company name in terms of the Act.

Stages in change of company name

  1. Get written  approval from the registrar for the change of name
  2. The company  shall publish in the Gazette and in a daily newspaper circulating in the district in which the registered office of the company is situated an advertisement stating the change of name, and shall then apply for a certificate of change of name.
  3. The Registrar’s office  shall enter the new name in the register in place of the former name.
  4. Upon the application in writing of a registered business entity that has changed its name in terms of Section 26 of the Act and on production of the certificate of change of name, a Registrar of Deeds or mining commissioner, or other officer responsible for the registration of deeds or mining titles, shall make such alterations in his or her registers and on any title deeds and other documents evidencing title as may be necessary as a result of the changed name.

The change of company name does not affect any right or obligation of the registered business entity, or render defective any legal proceedings by or against the entity, and any legal proceedings that might have been continued or commenced by or against it under its former name may be continued or commenced under its new name. You therefore  do not lose any rights or property, neither can you evade your creditors by changing the name of the company.




Get Import Licenses in Zimbabwe

What is an Import license

An import license is a document issued by a national government authorizing the importation of certain goods into its territory. Import licenses are a statutory requirement in terms of the laws of Zimbabwe. However not all imports require an import licenses, for example goods classified as COVID 19  essential goods can be imported without an import license in terms of  Statutory Instrument number 90 of 2020.

Why do some goods require import licenses?

Imports are the main source of goods from outside the country and the reason why some goods require import licenses is to control the importation of goods. Such controls are done in the interest of the public and are meant to protect the consumer against things like dangerous and harmful drugs and substances and to protect the environment as well as to protect local businesses from foreign competition.

Requirements for an Import license

  • Certificate of incorporation
  • CR6 (Formerly CR14) showing company directors
  • Tax clearance certificate (ITF263)
  • Copy of standard development fund levy receipt
  • Proforma invoice for the imports

You do not have to smuggle your goods. Get in touch with Sabarm Business Solutions to day and let us help your business obtain an import license so that you can import your goods within the confines of the law.


NSSA Registration and NSSA Clearance certificates

What is NSSA?

In terms of the National Social Security Act [Chapter 17:04], NSSA contributions are compulsory and all employers must register within 30 days of becoming an employer, by completing employer registration form P2 and ensure that employees complete employee registration form P3.

Failure to comply with the provisions of the Act including failure to register is an offense and offenders will be prosecuted in terms of Section 48(1) and 48(5) where the penalties include a jail sentence.

NSSA pensions and other benefits

For NSSA pensions and other benefits, the employer and the employer both contribute 4.5% of the total earnings. This means that the total paid is 9% of the total earnings of the employee.


what is a NSSA Clearance Certificate?

A NSSA Clearance Certificate is a certificate issued by the National Social Security Authority [NSSA] to registered employers liable for NSSA contributions, under any of the Acts administered by the National Social Security Authority. The certificate is issued upon request from employers whose contribution accounts are up-to-date or has made alternative debt settlement arrangement with NSSA.

What are the benefits of NSSA Clearance Certificate?

  • NSSA Clearance Certificate is required when bidding for tenders.
  • It acts as an assurance that, the trading partner’s employees are adequately covered by social security schemes as enshrined under Section 12 of the Accident Prevention & Workers’ Compensation Scheme SI 68 of 1990.
  • A NSSA Clearance Certificate is a pre-requisite when applying for licences issued by local authorities.
  • Business counterparts have confidence in doing business with companies who are compliant to statutory obligations

What is required to obtain a NSSA Clearance Certificate?

  • The Employer’s account must be up-to-date in terms of contributions & premiums.
  • Employers with outstanding legacy debt, must make alternative debt settlement arrangement, approved by NSSA.
  • The Employer must furnish all statutory returns particularly P4 return or make satisfactory arrangements with NSSA for the furnishing of such returns.

Tax in farming for farmers in Zimbabwe

As farming is gaining prominence and more and more people are realizing the value of farming as a source of income and as a career its important to note that farming is a business and is recognized by the law as a trade.

What is a farmer?

For tax purposes a farmer is any person who derives income from pastoral/agricultural or other farming activities, including any person who derives income from the letting of a farm used for such purposes. [Section 2(1)  of the Income Tax Act] In terms of the law, such person is liable to pay tax. However not to fear, the tax laws are very soft towards farmers as they seek to promote farming in the country.

If you are a farmer as defined you must register with the Zimbabwe Revenue Authority (ZIMRA) and pay your taxes in terms of the Act.

what are the tax obligations of a farmer Obligations of a farmer?

  • Registering for Income Tax ,PAYE and VAT as and when you become liable to register
  • Keeping accurate records of transactions;
  • Retaining records for up to 6 years
  • Remitting taxes by the due dates;
  • Submitting tax returns by the due dates;
  • Furnishing information as requested by Zimbabwe Revenue Authority (ZIMRA

As mentioned earlier, the government is always seeking to promote agriculture. This is also evident in the tax laws passed which seek to promote farmers. Did you know that farmers have special deductions in terms of section 15 (2) (z) As read with paragraph 2 of the 7th Schedule of the Income tax Act? . These are specifically meant to make sure that the tax paid by farmers is minimized.

what are the special tax deductions for farmers?

  • Costs incurred in works for the prevention of soil erosion (planting of trees, ridging, etc.)
  • Any water conservation works
  • The stumping and clearing of land for farming purposes.
  • The sinking of boreholes and wells
  • Aerial and geophysical surveys.
  • Fencing used in farming operations.

Farming is also a business and like any other business, there are tax issues. Let us take care of the tax aspects of your farming business and you can focus on your farming. Contact us for more information.