The third installment of provisional income tax (QPD) for the year is due on Saturday 25 September 2021. This installment (payable in the currency of trade) is calculated at thirty percent of the projected annual tax on income from trade and investment.
Projected annual taxable income must be based on year to date figures rather than results for the respective quarter. This method ensures that revenue and expenses trends are factored into the annual projection. The tax installment must be calculated using the respective quarterly percentages as set out below.
- First QPD – 10 percent (Cumulative – 10 percent) payable on 25 March
- Second QPD – 25 percent (Cumulative – 35 percent) payable on 25 June
- Third QPD – 30 percent (Cumulative – 65 percent) payable on 25 September
- Fourth QPD – 35 percent (Cumulative – 100 percent) payable on 20 December
It is advisable to calculate the QPD using the cumulative quarterly rates and deducting the provisional tax already paid. This way, the current installment is automatically adjusted to reflect the revised estimates. Interest is charged on underpaid QPDs at the rate of twenty five percent per month or part thereof.
A return (ITF12B) for provisional tax payment for the quarter must be submitted via email to the Zimbabwe Revenue Authority.