The Commissioner General of the Zimbabwe Revenue Authority (ZIMRA) has given notice to all registered taxpayers that they are required to submit their income tax returns for the year of assessment ended 31 December 2021.
Public Notice Number 29 of 2022 declared that the following registered taxpayers are required to submit their Income tax , Capital Gains tax and Transfer Pricing returns as follows:-
- Every person, whose employer implemented the Final Deduction System but, changed employers, started or terminated employment during the year, received a pension or worked part time in addition to full time employment, must submit the income tax return (form ITF1) together with the supporting documentations by 30 April 2022.
- Persons who received income solely from employment and paid employment tax (PAYE) according to the Final Deduction System and were employed by the same employer throughout the year are NOT required to submit income tax returns.
- Individuals, companies and trusts in receipt of income from trade and investments must submit their income tax self assessment return (form ITF12C) together with the supporting financial statements by 30 June 2022 (small clients), 31 July 2022 (medium sized clients) and 31 August 2022 (large clients).
- Individuals, companies or trusts who disposed of specified assets including marketable securities and did not submit the capital gains tax return in 2021 must submit the capital gains tax return (form CGTI) by 31 May 2022.
- Taxpayers whose approved accounting years are not 31 December are required to submit the income tax return on the dates set by the ZIMRA.
- Individuals, companies or trusts with income from trade and investments earned from domestic (and/or) international related party transactions must submit their income tax returns together with the Transfer Pricing Return (ITF12C2) by 31 August 2022. The transfer pricing return will assist the Commissioner identify pricing practices that potentially prejudice the fiscus.
- All registered taxpayers who were dormant during the year 2021 are also required to submit nil income tax returns by 30 June 2022. Dormant companies that are not registered for tax are required to register and submit nil returns by the said date.
While income tax returns are generally completed in Zimbabwe dollars, the Zimbabwe Revenue Authority may accept returns completed in foreign currency under the following conditions provided taxpayers have submitted an application explaining their positions:-
- Taxpayers with gross income completely in foreign currency.
- Taxpayers with gross income in both local and foreign currency but seventy percent of the income is in foreign currency.
- Taxpayers with gross income in foreign currency and allowable deductions in both local and foreign currency.
The Public Notice clarified that where the income tax is payable in both local and foreign currency, taxpayers should apportion the tax on the basis of revenue contribution of the respective currencies to the total turnover. The Commissioner may approve any other method of apportionment on request.
There you have it; Public Notice number 29 of 2022 has set out the due dates for submission of the income tax and capital gains tax returns in terms of the law. It did not however, shed any light on the granting of extensions beyond the said dates. You can view the entirety of the Public Notice here.