The Zimbabwe Revenue Authority (ZIMRA) is extending a golden opportunity to individuals and businesses to promote voluntary compliance and ensure the smooth functioning of business operations and social life. This unprecedented initiative allows taxpayers to review their financial affairs and rectify any discrepancies or omissions in their tax returns. By embracing this opportunity, taxpayers can avoid penalties and legal consequences while contributing to the growth and development of Zimbabwe.
ZIMRA urges taxpayers falling under specific categories to seize this opportunity and make voluntary disclosures to rectify tax-related irregularities:
- High-Value Property Owners: Individuals who have constructed properties costing USD 100,000 or more.
- Gold and Mineral Traders: Individuals engaged in trading gold or other minerals.
- Luxury Vehicle Owners: Owners of luxury vehicles valued at USD 150,000 or more.
- Private Jet Owners and Lessors: Individuals who own or lease private jets.
- Middlemen and Agents: Individuals acting as intermediaries for goods manufactured in Zimbabwe.
- Transport and Taxi Operators: Operators in the transport and taxi industry.
- High-Value Building Owners: Individuals or companies involved in constructing buildings worth USD 100,000 or more.
Depending on the nature of your business or trade, various tax types may apply, including:
- Value Added Tax (VAT): Levied on goods and services supplied by registered operators meeting the VAT registration threshold.
- Income Tax: Applicable to income received or accrued from trade and investments.
- Capital Gains Tax: Imposed on the disposal of immovable property, marketable securities, and intangible assets.
- PAYE (Pay As You Earn): Tax deducted from employees’ income by their employers and remitted to ZIMRA.
Taxpayers can take advantage of this opportunity by following a few simple steps:
- Provide Detailed Schedules: Prepare schedules outlining any outstanding taxes that need to be disclosed.
- Complete Outstanding Returns: Ensure accurate completion and submission of all outstanding tax returns.
- Settle Tax Obligations: Pay the tax due or engage with ZIMRA to arrange suitable payment arrangements.
ZIMRA acknowledges the efforts made by taxpayers who provide full and comprehensive voluntary disclosures. In such cases, the commissioner will consider lenient penalties. It is important to note that a true and comprehensive voluntary disclosure will not trigger an audit.
Taxpayers are advised to act promptly as the voluntary disclosure window will expire within 30 days from the date of publication of Public Notice 55 of 2023. Failure to comply after this period will result in legal and tax consequences to the full extent of the law.
The voluntary disclosure opportunity provided by the Zimbabwe Revenue Authority presents a unique opportunity for individuals and businesses to rectify any tax-related irregularities. By embracing this initiative, taxpayers not only avoid penalties and legal consequences but also contribute to the growth and development of Zimbabwe. It is a call to uphold one’s civic duty and build a stronger nation, one tax disclosure at a time.
