R.DIMINGO

Zimbabwe tax commentary

SUBMISSION OF 2014 TAX RETURNS

The Commissioner General of the Zimbabwe Revenue Authority has notified all taxpayers of the due date for submission of the income tax returns for the year ended 31 December 2014 in terms of Section 37 of the Income Tax Act Chapter 23:06.

In Public Notice No 8 of 2015, the Commissioner General announced that registered taxpayers who are not on self assessment but are in receipt of income from trade and investment are required to submit their 2014 income tax returns (ITF12 or ITF1A) by 17 August 2015.

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SUBMISSION OF 2013 TAX RETURNS

The Zimbabwe Revenue Authority announced the due date for submission of income tax returns for the year ended 31 December 2013.

In a notice published on their website, Zimra announced that the following registered taxpayers are required to submit income tax returns by 31 May 2014;

  • Individuals, companies and trusts in receipt of income from trade and investment and are not specified as being on self-assessment.
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CIVIL PENALTIES FOR LATE RETURNS

While not a complete surprise, the Zimbabwe Revenue Authority last year introduced civil penalties for late returns. In Public Notice Number 10 of 2013, the taxman announced the implementation of the provisions of Statutory Instrument 97 of 2013 gazetted on 28 June 2013. This provides for the charging of civil penalties for late submission of tax returns.

Previous returns submitted after 28 June 2013 and thereafter returns submitted after due date are liable to a civil penalty of up to US$30 for every day they remain outstanding. The penalty applies to the first 181 days. The table below specifies the affected returns required in terms of the Income Tax Act (Chapter 23:06), Capital Gains Tax Act (Chapter 23:01) and the Value Added Tax Act (Chapter 23:12).

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TAXATION PROPOSALS FOR 2014

The Minister of Finance presented the 2014 national budget on 19 December 2013 and made the following taxation proposals. These are effective from 1 January 2014 unless specifically indicated.

PAYE AS YOU EARN 

  • The PAYE tax free threshold remained at US$250 per month while the highest marginal rate of tax increased to 50% for incomes above US$20,000 per month.
  • Tax free commutation of a severance package increased to the greater of US$10,000 or 1/3 of the package up to a maximum of US$60,000.
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TAXATION CHANGES FOR 2013

The following are the recent legislated tax changes which took effect on January 1, 2013 unless specifically indicated.

PAY AS YOU EARN

  • There are no changes in rates of tax and credits for individuals.
  • Tax free bonus has been increased from US$700 to US$1000 with effect from 1 November 2012.
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