What is tax?
Tax is a compulsory payment that individuals and businesses make to the government. It funds public services such as roads, schools, hospitals and security. In Zimbabwe, taxes are administered and collected by the Zimbabwe Revenue Authority (ZIMRA).
As soon as your business starts trading or employing people it has tax obligations. In practice this means three things:
- Register with ZIMRA for the taxes that apply to you, starting with a Taxpayer Identification Number (TIN).
- Declare and pay on time by submitting returns (monthly, quarterly or annually) and paying the tax due.
- Keep records such as invoices, receipts, payroll and bank statements so your returns can be supported if ZIMRA audits you.
Why it matters: a compliant business can obtain a Tax Clearance Certificate (ITF263), which customers, banks and government tenders usually ask for. Without it, customers may be required to withhold part of your payments.
The main taxes for a Zimbabwean business
| Tax | Who it applies to | In short |
|---|
| Corporate Income Tax | Companies and PBCs that make a profit | Tax on taxable profit, declared on an annual return and paid in advance through Quarterly Payment Dates (QPDs). |
| Value Added Tax (VAT) | Businesses whose taxable supplies exceed the VAT registration threshold | Charged on sales, with VAT paid on purchases claimed back. Returns are usually monthly or bi-monthly. |
| PAYE | Every employer | Pay As You Earn: income tax deducted from employees' salaries and paid to ZIMRA monthly, together with the AIDS levy. |
| Withholding taxes | Businesses paying certain suppliers, non-residents or interest | Tax deducted at source from specific payments, for example when a supplier has no valid tax clearance. |
| Presumptive tax | Certain informal and small operators | A fixed tax for specified sectors such as transport operators and small-scale traders. |
Tax rates, thresholds and deadlines are set in the Finance Act and change from time to time. We confirm the current figures for your business before we file anything.
Tax registration
A newly incorporated company is not automatically registered for every tax. We register you with ZIMRA for the taxes that apply to your activities:
TIN registrationYour Taxpayer Identification Number, the starting point for every other tax.
Income tax registrationSo the company can file annual returns and pay QPDs.
VAT registrationCompulsory above the turnover threshold; voluntary registration is possible.
PAYE registrationRequired before you pay your first salaries.
Withholding tax registrationFor businesses that must withhold tax from payments.
Documents we needCompany certificate, CR6 / CR14, directors' IDs, proof of address and bank details.
Tax clearance certificate (ITF263)
The ITF263 is ZIMRA's tax clearance certificate. It confirms that your business is registered and up to date with its tax obligations. It is normally valid until the end of the calendar year in which it is issued, so it must be renewed every year.
Why you need it
- Corporate and government customers ask for it before paying you, and may withhold tax from your payments if you do not have one.
- It is required for most tenders, supplier registrations and some licences.
- Banks and investors use it as evidence of good standing.
Our services
- ITF263 tax clearance applications
- ITF263 renewal
- Checking and resolving outstanding returns that block clearance
Tax returns & routine filing
Once registered, your business must file returns on time even when there is nothing to pay. Late returns attract penalties and interest, and prevent you from getting tax clearance.
| Return | Typical frequency |
|---|
| VAT returns | Monthly or bi-monthly, depending on your VAT category |
| PAYE returns | Monthly, by the 10th of the following month |
| Quarterly Payment Dates (QPD) | Four advance payments of income tax: 25 March, 25 June, 25 September and 20 December |
| Withholding tax returns | Monthly, when tax has been withheld |
| Corporate income tax / annual returns | Once a year, after the financial year end |
We offer routine tax account and filing assistance so that every return is prepared, submitted and paid on time.
Fiscalisation
Fiscalisation means recording your sales through a ZIMRA-approved fiscal device or virtual (online) fiscal system so that VAT on every sale is reported to ZIMRA. VAT-registered businesses are generally required to fiscalise.
- Fiscalisation registration
- Virtual fiscalisation setup
- Fiscalisation implementation assistance
- Fiscalisation compliance assistance
How RegisterBusinessOnline helps
Tax registrationTIN, income tax, VAT, PAYE and withholding tax registrations.
Clearance & returnsITF263, VAT, PAYE, QPD, withholding and annual returns.
FiscalisationRegistration, virtual fiscalisation and compliance support.
Need a TIN or a tax clearance certificate?
ZIMRA / TIN registration with your ITF263 tax clearance for an existing company, paid online with Paynow. For VAT, PAYE or returns, request a quote.
Order TIN & tax clearance online
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