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.