The second installment of provisional income tax (QPD) for the year is due on Tuesday 25 June 2024. On this date, taxpayers are required to pay 25% of their estimated annual income tax liability for the year ending 31 December 2024.
It is important to note that the provisional tax payments must be made in the currency of trade as required by the law. This means that if the taxpayer’s income is earned in United States Dollars (USD), the tax payment should be made in US dollars, and if it’s in Zimbabwe Gold (ZiG), the payment should be in the local currency(ZIG), else the tax must be paid in the proportion of each currency’s contribution to turnover.
This quarter, the Minister of Finance, Economic Development and Investment Promotion made a directive for the payment of the second Quarterly Payment Date (QPD) for 2024 to be made in the proportion of 50% in USD and 50% in ZiG. However, the necessary statutory instrument to confirm this directive is not yet available as of the date of this blog post.
The other QPD dates for 2024 are as follows:
– 1st QPD: 25 March 2024 (10% of estimated annual tax)
– 3rd QPD: 25 September 2024 (30% of estimated annual tax)
– 4th QPD: 20 December 2024 (35% of estimated annual tax)
To submit the QPD payment return, taxpayers must file the Income Tax Provisional Return (ITF12B) through the Tax and Revenue Management System (TaRMS). Failure to submit this return may result in the Zimbabwe Revenue Authority (ZIMRA) estimating your taxable income and recovering the tax due together with interest.
It is also crucial to accurately estimate the projected annual taxable income when calculating the QPD payments. If the estimate deviates from the actual taxable income by more than 10%, the taxation authority may charge penalties or interest on the underpaid QPD amounts. However, if the underestimation falls within the 10% margin of error or if the taxpayer faced genuine difficulties in paying the provisional tax, ZIMRA may waive or reduce the interest charges.
In summary, the second QPD for 2024 is due on 25 June, and taxpayers must pay 25% of their estimated annual income tax liability in the currency of trade. The ITF12B return must be filed through TaRMS, and interest may be charged on underpaid QPDs if the estimates deviate significantly from the actual taxable income.
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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 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.