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EXTENSION OF DUE DATE FOR SUBMISSION OF 2020 TAX RETURNS

Last month the Zimbabwe Revenue Authority declared that all registered taxpayers are required to submit their capital gains tax and income tax returns for the year ended 31 December 2020 by 30 April 2021.

As a follow up, the taxation authority has announced an extension of the due date for submission of tax returns through Public Notice number 36 of 2021 citing the impact of imposed lock-downs earlier this year and the need to ease congestion on their e-services platform.

Due dates for submission of the tax returns have now been staggered as follows:

  • Small clients office(Harare), Region 2 and 3 – 30 June 2021,
  • Medium clients office (Harare) – 31 July 2021,
  • Large clients office (Harare) – 31 August 2021,
  • Clients with related party transactions – 31 August 2021.

While income tax returns are generally completed in Zimbabwe dollars, the Zimbabwe Revenue Authority may accept returns completed in foreign currency provided taxpayers have submitted an application explaining their positions.

The notice goes on to clarify that registered taxpayers with gross income in both local and foreign currency can prepare and submit separate income tax returns for taxable income accrued or received in the respective currencies.

On the other hand, taxpayers with gross income primarily in foreign currency but with allowable deductions in local and foreign currency may prepare and submit a single income tax return in foreign currency.

Lastly, all taxpayers with income from trade and investments earned from domestic (and/or) international related party transactions must submit their income tax returns supported by the Transfer Pricing Return (ITF12C2). The transfer pricing return will assist ZIMRA to identify pricing practices that may potentially prejudice the fiscus.

There you have it, Public Notice number 36 of 2021 has come as a relief to many taxpayers. Compliance costs are already high for small businesses which have so far endured the vagaries of the economic meltdown that followed hot on the heels the covid-19 pandemic.

Richard Dimingo
Richard Dimingo
Practice Manager Next Investments

Richard Dimingo is a multi-disciplined practitioner with more than twenty five years experience in the accounting, tax and management consulting field. He is a tax blogger, consultant, coach, trainer and practitioner in the fields of software development, technology consulting, tax and estate planning, life transformation and META-Health.

 

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Richard Dimingo
Richard Dimingo
Practice Manager Next Investments

Richard Dimingo is a multi-disciplined practitioner with more than twenty five years experience in the accounting, tax and management consulting field. He is a tax blogger, consultant, coach, trainer and practitioner in the fields of software development, technology consulting, tax and estate planning, life transformation and META-Health.

 

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