ZIMRA Registration

 

 

Importance of a Tax clearance Certificate (ITF 263)

  • Nonpayment of tax can result in interest being levied at a rate of 10% per annum plus penalties of up to 100%
  • Interest can be compounded indefinitely as the Tax laws specifically allow cumulative interest to exceed the original capital amount.
  • The Commissioner has been given the power to attach and auction property in cases of nonpayment of duty or taxes.
  • The powers also cover areas such as failure to furnish any return or information in connection with a tax liability within the time allowed and where the Commissioner is not satisfied with the return or information supplied.
  • ZIMRA also has power to garnishee bank accounts to recover any unpaid taxes.

VAT Registration Requirements

 

  1. Must be registered with ZIMRA having a BP number
  2. Payments for all tax heads must be up to date
  3. Fully completed REV 1 FORM (download from www.zimra.co.zw )
  4. Sales Invoices from the time of commencement of trade to date showing customers’ name and
  5. telephone numbers OR confirmed and signed contracts
  6. Sales Projections schedule for the next 12 Months
  7. Current Stamped bank Statement
  8. Letter appointing public officer
  9. Valid lease agreement in the company name (if property is rented) or title deed (if property is owned.
  10. Sales Schedule from Commencement of trade to date

TAX SERVICES

All clients, including individuals, companies, partnerships and cooperatives who want to venture into any business are required to register with ZIMRA within 30 days and comply with all obligations as stipulated in the legislation like submitting timely returns and making timely payments.
The filing of tax returns is mandatory for all taxpayers and for one to get a tax clearance and comply with the law. Sabarm Business Solutions will assist you in filing your returns in a timely manner and make sure that you are a compliant taxpayer. We will handle your;
  • QPDs
  • PAYE returns (P2)
  • VAT returns
  • Income tax Annual Returns (ITF 12C)
    • Arrangements of tax affairs to minimize tax liability through the use of all allowances, tax deductions, exclusions, exemptions among others to reduce income. Business people need to ensure that all statutory obligations are met and in time to avoid punitive measures such as garnish orders. We will make sure that you pay the least amount of tax possible within the confines of the law.
    This is issued by the Revenue Authority (ZIMRA) once a taxpayer has met all the stipulated obligations which include submission of tax returns and remittances of tax due. Failure to have a Tax Clearance certificate results in the deduction of 10% of the amount payable to the business (Withholding tax).

    WHT is in terms Section 80 of the Income Tax Act (Chapter 23:06) and in terms of the same section, a 10% 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 10% 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.

    What is a tax clearance certificate?

    As explained by Zimbabwe Revenue Authority (ZIMRA), A Tax Clearance Certificate (ITF 263) is a certificate issued by the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA), to a person liable to pay tax, provided that the taxpayer’s tax position is satisfactory.

    How can you get a tax clearance?

    First of all one has to be registered with ZIMRA for a tax clearance to be issued.  Moreover, for a tax clearance to be issued, one’s tax affairs have to be in order, i.e. tax returns & tax payments will have to be up to date and if the taxpayer is under a payment plan, it has to be adhered to religiously.

    what is the importance of a tax clearance?

    Most people think that you can trade and go about you business without a tax clearance. While this may be true, failure to have a valid tax clearance means that your tax affairs are not in order and you are in contravention of the country’s tax laws. It is a statutory requirement for all traders have a valid tax clearance and failure to provide a valid tax clearance means 10% Withholding tax has to be withheld on any contract with such a trader. This withholding tax of 10% is on each contract and is largely punitive and so it is far better to have your tax affairs in order and pay your corporate taxes rather than paying withholding tax on your contracts.

    Most people think that you can trade and go about your business without a tax clearance. While this may be true, failure to have a valid tax clearance means that your tax affairs are not in order and you are in contravention of the country’s tax laws.

    • It is a statutory requirement for all traders have a valid tax clearance and failure to provide a valid tax clearance means 10% Withholding tax has to be withheld on any contract with such a trader in terms of section 80 of the Income Tax Act. This withholding tax of 10% is on each contract and is largely punitive and so it is far better to have your tax affairs in order and pay your corporate taxes rather than paying withholding tax on your contracts.
    • A tax clearance is a requirement for the issuance and renewal of any operator’s licence in respect of the operation of any public service vehicle [Section 80A (2)]
    • A tax clearance is a requirement for the issuance and renewal of a licence in respect of any trade or business required to be licensed in terms of the Shop Licences Act [Chapter 14:17]
    • A tax clearance is a requirement for the issuance and renewal of a certificate of registration of a mining location under the Mines and Minerals Act [Chapter 21:05] to a miner.
    • A tax clearance is a requirement for the issuance and renewal of a licence to any person who owns, conducts or operates a designated tourist facility as defined in the Tourism Act [Chapter 14:20] or who provides or assists in providing any service which is such a designated tourist facility.

    Avoid  the hassles associated with not having a valid tax clearance certificate. Contact Sabarm Today and let us give you peace of mind on all your tax issues.

    Tax invoices are very important in Value added tax. However, not all receipts are tax invoices. A tax invoice is a legal document that a seller submits to a customer in which the tax is included. A registered operator who supplies taxable goods/services is required to issue the recipient with a tax invoice/fiscal tax invoice within 30 days from the date of such supply.

     

    Did you know that it is illegal to issue more than one tax invoice for each taxable supply? If a customer loses the original tax invoice, the supplier may provide a copy clearly marked “copy”. Do not breach the law as the punishment is severe.
    For VAT purposes, not all invoices will be accepted by the Zimbabwe Revenue Authority as tax invoices?
    Features of a valid tax invoice.
    • The words ‘Tax Invoice’ or ‘Fiscal Tax Invoice’ should be in a prominent place
    • Name, address & VAT Reg No. of the supplier
    • Name & address of the recipient &, if recipient is a registered operator, the VAT Reg No. of the recipient Serialized number & date on which the invoice is issued
    • Description of the goods or services supplied
    • Quantity/volume of the goods or services supplied
    • Value of supply, price charged or consideration of the supply
    • Any other words/phrases used under the fiscal recording regulations denoting an invoice used to account for taxable supplies
    It is an offence for an unregistered operator to charge VAT in respect of any supplies made. You cannot add a VAT component on your price of goods/services if you are not registered for VAT. Anyone involved in such unlawful activity will be prosecuted for such an offence.
    VAT is seen as a complicated area in tax but we simplify it for you. Let us worry about it while you focus on your business. Contact us today for this and more