Benefits of Compliance

Did you know that you can avoid unnecessary penalties and interest by following basic tax
and duty compliance requirements?

Statutory Requirements for Corporate Income Tax

Income Tax is tax levied on the profits of a business at 25% plus 3% Aids Levy. This tax is
paid every quarter based on projected business profits.

Client’s Obligations under Corporate Income Tax

 Every company is required to register with ZIMRA within 30 days of incorporation or

registration with the Registrar of Companies;
 A copy of the memorandum and articles of association constituting the company are
required to be filed with the Commissioner General of ZIMRA, within 30 days of the
company’s incorporation or registration under any law;
 A representative/Public Officer who will represent the company, -who is a
Zimbabwean resident and is registered with ZIMRA - must be appointed;
 Client needs to open a bank account before registration with ZIMRA. A bank
clearance letter is provided by ZIMRA to falicitate the opening of the bank account.
 Adhere to Quarterly Payment Dates (QPDs) by estimating the Provisional Tax at the
beginning of the year then charge 25.75% (aggregate tax rate inclusive of Aids Levy)
tax on this estimated taxable profit. The resultant tax is paid in four annual
instalments as follows:

ü 25 March 2016--------------------- 10%

ü 25 June 2016------------------------25%

ü 25 Sept 2016------------------------30%

ü 20 Dec 2016------------------------35%

 Submit ITF 12B (a return for Provisional Tax payments) when making payments
under QPDs.
 Benefits of Compliance
 Submit an Income Tax return (ITF 12C) on-line using ZIMRA’s e-services platform
when it is due.

Costs associated with non-compliance come in various forms such as:

 Civil penalties for failure to submit returns;

 Time wasting;
 Court cases that may affect the image of the business;
 High collections costs, as well as possible legal fees; and
 Extra costs in additional tax and penalties that may negatively affect cash flows.

To avoid such costs, clients should:

 Keep proper records;

 Adhere to due dates for payment of taxes or submission of returns;
 Pay the correct amount of tax; and

Declare the correct amount of taxable income in their tax returns.

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes
only. ZIMRA shall not accept responsibility for loss or damage arising from use of material
in this article and no liability will attach to the Zimbabwe Revenue Authority.