In Zimbabwe, insurance businesses must navigate and comply with many tax obligations. Among these several tax obligations is the property and insurance commission tax in respect of commission paid to freelance agents or brokers. This tax creates unintended consequences in that the tax liability rests with the person who does not hold any money in their hands or who does not make any “payment” to a ...
The Role of Tax Education in a VUCA Tax Environment
Zimbabwe’s growing need to expand its revenue base has made rigorous tax collection a primary focus, creating complex compliance demands for taxpayers and businesses. With ZIMRA’s intensified collection initiatives and the fiscal pressures driving this focus, businesses are facing heightened tax scrutiny. ZIMRA’s proactive stance places pressure on companies to manage tax risks effectively, partic ...
Critical QPD Updates: Urgent Steps for Businesses to Ensure Compliance with 2024 Tax Obligations
Following the 2024 Mid-Term Budget Review, the Zimbabwe Revenue Authority (ZIMRA) issued essential guidance on September 23, 2024, regarding the application of Quarterly Payments Dates (QPDs). With the third quarter (Q3) approaching its close, businesses are expected to have paid 65% of their annual tax liability. This requirement could demand immediate adjustments to avoid significant penalties f ...
TaRMS Release 3: A Game-Changer That Could Catch Businesses Off Guard
With the full rollout of the Tax and Revenue Management System (TaRMS) set for 1st October 2024, Zimbabwe is on the brink of a significant shift in tax compliance. This advanced system aims to streamline tax processes and increase ZIMRA’s oversight capabilities, leaving businesses with little room for error. It is crucial for organisations to understand the implications of TaRMS and take immediate ...
VAT pitfalls and traps on Property Sales in Zimbabwe
Understanding the intricate details of Value Added Tax (VAT) in property transactions is critical for both buyers and sellers in Zimbabwe's property market. Ignoring the complex nuances of Value Added Tax (VAT) can lead to severe financial consequences, placing immense pressure on both sellers and buyers. The stakes are high and a lack of diligence could result in unexpected costs that may destabi ...
Adapting Zimbabwe’s Assessment Year to New Economic Realities
The recent introduction of the Zimbabwean Gold (ZIG) currency on April 5, 2024, has prompted significant changes across Zimbabwe’s financial landscape. Among these is the proposed adjustment to the year of assessment for taxable income from employment. This proposal, put forth by the Minister of Finance, Economic Development, and Investment Promotion, seeks to divide the 2024 tax year into two dis ...
Fuel Transit Rules Threaten Business Liquidity
A bold policy from Zimbabwe's Minister of Finance, Economic Development and Investment Promotion’s Mid-Term Budget Review on how duty and levies on fuel imported under Removal in Transit (RIT) are handled came into effect on 10 August 2024, following the Zimbabwe Revenue Authority (ZIMRA) public announcement. According to the new regulation, duty and levies on fuel must be paid upfront at the port ...
Tougher VAT deferment Rules looming
In a significant move to tighten tax regulations, Zimbabwe’s Finance Ministry has proposed amendments to the regulations governing the deferment of Value Added Tax (VAT). These changes introduce new penalties aimed at ensuring that businesses and individuals promptly adhere to their tax obligations, reduce tax evasion, and enhance revenue collection.The proposal introduces two key penalties. First ...
New VAT Exemptions on Livestock Products
In a significant move aimed at bolstering economic growth and improving the affordability of essential goods, Zimbabwe has announced substantial reforms to its Value Added Tax (VAT) system, exempting certain products from VAT effective 1 August 2024. This article explores the details of this shift, explaining the intricacies of moving from standard-rated to exempt goods, the motivations behind the ...
Your Tax Obligation When Working for a Foreign-Based Employer
The digitalisation of work, accelerated by the COVID-19 pandemic, has enabled people to work globally, often for foreign-based employers while residing in their home countries. This shift offers numerous advantages, such as access to a diverse talent pool and potential cost reductions for employers. However, it also introduces complex tax implications for employees residing in Zimbabwe. This artic ...