About Tax and ZIMRA

The Companies Registry doesn’t  automatically notify the Zimbabwe Revenue Authority (ZIMRA) when a company is registered, therefore as soon as your business has been set up, you should register with ZIMRA for your tax obligations.

All companies must register for and meet their tax obligations to ZIMRA on all forms of taxable income – this includes Income Tax and Value Added Tax (VAT). As soon as you register for income tax you are issued a BP number and a tax clearance.

The trading status of all registered companies is either ‘active’ or ‘dormant’. If your company is not carrying on any form of business activity, it is dormant. If your company is trading, it is considered ‘active’ for income tax purpose and it must be registered with ZIMRA within 30 days of any form of business activity taking place. ‘Business activity’ can mean any of the following:

• Selling goods or providing services with a view to making a profit.
• Buying goods and services.
• Leasing or purchasing land or property.
• Receiving income from rental property or sales.
• Managing investments – buying shares in another company and receiving dividend payments.
• Issuing dividend payments to shareholders.
• Earning interest.
• Employing staff and operating payroll.
• Paying directors’ salaries.
• Advertising your products and services
• Paying accountancy fees through a business bank account.
• Any other significant accounting transactions (monies spent or received) that must be entered into your company’s accounting records.

Some of Company Formations’  Private Limited Company Packages and Private Business Corporation Packages have tax clearances and we can help you to register for tax and acquire your tax clearance.

Company documents

1. Certificate of Incorporation;
2. CR 6 (Former CR14) which contains details of directors
3. CR 5 (Former CR6) which contains registered address of the company.
4. Company’s stamped current Bank Statement.
5. Memorandum of Association (1st 3 pages plus the last signed page)
6. Articles of Association (1st 3 pages plus the last signed page)

Directors documents

• Certified copies of directors I.D’s/Passport.
• Director’s email addresses and phone number.
• Proof of residence for every director in form of utility bill supported with an affidavit if not in the bill is not in the director’s name.
• Stamped current personal bank statement of one Zimbabwean director.

After commencing operations, clients are required to keep records of all their business operations and pay Provisional Tax on the stipulated dates. The dates are referred to as Quarterly Payment Dates (QPDs). The Provisional Tax payable is based on the respective percentage of estimated annual tax due. The annual estimated tax due should be revised to update the estimate every quarter. The quarterly payment dates and the percentage of tax due for each tax year are listed below: