WITHHOLDING AND

PRESUMPTIVE
TAXES
Group 5
PRESUMPTIVE TAXES
◦ Presumptive taxation entails the use of indirect methods to determine tax liability, as opposed to the
traditional laws centred on the taxpayer's books and records. The term "presumptive" refers to a legal
assumption that the taxpayer's income is equal to or greater than the amount measured using the indirect
form. This presumption may or may not be rebuttable, as discussed below. The definition includes a
broad range of alternate approaches for calculating the tax base, ranging from methods of reconstructing
income based on administrative procedure, which may be challenged by the taxpayer, to real minimum
taxes with pre-determined tax bases.
WITHHOLDING TAXES
◦ When dividends, royalties, or similar payments are reported or distributed to non-Zimbabwean nationals,
withholding taxes apply (and Zimbabwean residents in some instances)
WHT on contracts
◦ All registered operations including government ,quasi movement and statutory corporations who enter
into any contracts will result in an obligation to pay amounts aggregating to us 1000 or more in a tax
year they are required to withhold 10% of each amount payable to payees without valid tax clearance
certificates.
◦ The payers obligations
◦ Amount deducted to be remitted to Zimra on or before the 10 th og the month following the month in
which the payment is made
◦ The person from whom the amount has been withheld must be furnished with a certificate showing full
details including amountwithheld .
◦ The payer should retain a copy of the tax clearance certificated furnished by registered clients .
◦ If the payer is liable for the amount he or she has failed to withhold and is also liable to payment of
100% penalty on the amount defaulted .
◦ Exemptions
◦ Amounts paid in terms of employment contracts
◦ Amount paid in an agreement for the settlement of a delictualclaim against the state or a statutory
corporation .
Other forms of withholding tax
◦ DividendsDividends declared by a Zimbabwean company to a non-resident holding company will be
subject to non-resident shareholders tax (NRST), a WHT. NRST is payable at a rate of 15% unless treaty
relief is available. Dividends from companies listed on the Zimbabwe Stock Exchange have a rate of
10%. NRST is payable within ten days after declaration of the dividend.
◦ interestWHT of 15%, calculated on the gross amount of interest, is payable on interest accruing to any
person resident in Zimbabwe. This applies to interest arising from a registered banking institution or unit
trust scheme. The tax withheld is a final tax, and the financial institution is responsible to withhold the
tax.
Other forms of withholding tax
◦ Royalties or similar payments WHT on royalties are payable once a Zimbabwean company pays a
royalty to a non-Zimbabwean resident. WHT is levied at a rate of 15% and is payable within ten days of
the date of payment. The WHT falls due upon accrual (i.e. when payable), and actual payment is not a
factor.
◦ A royalty includes payment for the use or right to use any patent or design, trademark, copyright, model,
pattern, plan, formula or process, or any other property or right of a similar nature. It also includes the
imparting of any scientific, technical, industrial, or commercial knowledge or information for use in
Zimbabwe. The nature of the amount payable should therefore be carefully considered in order to
determine whether the relevant amount represents a royalty.
WHT Due dates
◦ Non residents shareholders tax within 30 days of date of distribution
◦ Residents shareholders ‘’ 10 ‘’ ‘’ ‘’
◦ Non residents tax on fee ‘’ 10 ‘’
◦ Residents tax on interest 10
◦ Witholding of amounts under contracts on or before the 10th day of the following month after payment .
◦ Non executive directors fees within 10 days of payment of the fees
Resident Tax On Interest
◦WHT 15 % is calculated on the gross amount of
interest ,it is payable on interest accruing to any
person resident in Zimbabwe .this tax is final tax
and the financial institution is responsible fro
withhold the tax