8 Megawatt Complex, Bulawayo Rd, Gweru.

FOURTH QUARTER PROVISIONAL INCOME TAX FOR 2023

The fourth quarter’s provisional income tax (QPD) is due for payment on Wednesday 20th December 2023. This instalment, payable in the currency of trade, constitutes 35% of the estimated annual income tax from trade and investments.

While individual quarterly calculations with annualized tax are acceptable, the Zimbabwe Revenue Authority (ZIMRA) strongly recommends calculations of year-to-date profits for a more accurate projection. This method effectively takes into account potential fluctuations in revenue and expenses, resulting in a more accurate annual income tax estimate.

Determining the QPD amount is straightforward. Simply apply the appropriate cumulative percentage (see table below)  to the annual estimated tax  and deduct the provisional income tax already paid.

[wpdatatable id=1 table_view=regular]

The Zimbabwe Revenue Authority has announced through Public Notice Number 80 of 2023 that filing of returns and making tax payments should be done through the new Tax and Revenue Management System (TaRMS). Consequently the provisional income tax return (ITF12B) will now be filed through the new system. Furthermore when making QPD payments, it is now mandatory to quote the TaRMS generated Taxpayer Identification Number (TIN) instead of the Business Partner Number (BPN).

Income tax for the year is expected to be fully paid by December else interest will be  charged on underpaid or late payment of QPDs at the prescribed rates.

Currently, the prescribed interest rates per annum stand at 10% for foreign currency balances and 200% for outstanding Zimbabwe dollar balances.

For the sake of clarity, the legislation provides that interest will be levied if you have underestimated the amount of an instalment of provisional income tax payable by more than 10%. This ten percent serves as the acceptable margin of error in making the annual  tax projection.

In summary, remember to pay the fourth quarter provisional income tax for 2023 by December 20th. Use the new TaRMS system for filing returns and and quote the Taxpayer Identification Number (TIN) for QPD payments. Always consult a tax professional for advice on this and other tax matters.

Richard Dimingo
PRACTICE MANAGER , NEXT INVESTMENTS
Richard Dimingo

Richard Dimingo is the Practice Manager at Next Investments, with over twenty-nine years of experience in accounting, tax and management consulting. As a multi-disciplined practitioner, Richard has an extensive background that includes roles as a software applications developer, estate planning consultant, systems accountant and transformation life coach. He holds more than thirty certifications in the personal development field.

Richard is a licensed tax agent registered with the Zimbabwe Revenue Authority and a registered tax accountant authorized to practice by the Public Accountants and Auditors Board (PAAB) Zimbabwe.

He is also the developer of .NEXT, a groundbreaking technology designed for business and personal transformation. This innovative technology uncovers, analyzes, and resolves underlying unhelpful subconscious mind programming that stifle business innovation, inhibit personal growth, and contribute to ill-health and unhealthy relationship dynamics.

×
Richard Dimingo
Richard Dimingo
PRACTICE MANAGER , NEXT INVESTMENTS

Richard Dimingo is the Practice Manager at Next Investments, with over twenty-nine years of experience in accounting, tax and management consulting. As a multi-disciplined practitioner, Richard has an extensive background that includes roles as a software applications developer, estate planning consultant, systems accountant and transformation life coach. He holds more than thirty certifications in the personal development field.

Richard is a licensed tax agent registered with the Zimbabwe Revenue Authority and a registered tax accountant authorized to practice by the Public Accountants and Auditors Board (PAAB) Zimbabwe.

He is also the developer of .NEXT, a groundbreaking technology designed for business and personal transformation. This innovative technology uncovers, analyzes, and resolves underlying unhelpful subconscious mind programming that stifle business innovation, inhibit personal growth, and contribute to ill-health and unhealthy relationship dynamics.

Latest Posts