Tax returns and payment of tax
The due dates for filing of returns can be summarised as follows:
|Income tax return - Individuals - Salaries||Not necessary except in certain circumstances|
|Income tax return - Individuals - Carrying on wholly/partly a business profession or farming||Generally within four months after the tax year end (i.e. before 30 April each year)|
|Provisional payments (business individuals) - 1st payment of 10%||On/before 25 March of the respective tax year|
|Provisional payments (business individuals) - 2nd payment of 25%||On/before 25 June of the respective tax year|
|Provisional payments (business individuals) - 3rd payment of 30%||On/before 25 September of the respective tax year|
|Provisional payments (business individuals) - 4th payment of 35%||On/before 20 December of the respective tax year|
|Employees’ tax return (monthly PAYE return - P2 form)||By the tenth day following the month to which the PAYE relates|
|PAYE reconciliation returns (P8 and ITF16 returns)||Within 30 days from the end of the tax year and within 14 days where the employer ceases to trade|
Zimbabwe has a system of ’Final Deduction of PAYE’ by the employer, and the majority of individual taxpayers are not required to lodge tax returns, except in specified situations (such as where there are other sources of income or an employee changes employment during the course of the year of assessment).
Husbands and wives are taxed separately.
PAYE tax is withheld from an employee's salary by the employer and must be remitted to the revenue authorities by the tenth day of the month following the payroll deductions.
Please note that Zimbabwe legislation does contain basic anti-avoidance sections that empower the Commissioner General to disregard the implications of a transaction or scheme if it can be proven that:
- such transaction or scheme had been entered into to avoid or postpone the payment of any duty or levy imposed by the Act
- it was entered into or carried out by means or in a manner that would not normally be employed in the entering into or carrying out of a transaction, operation, or scheme of the nature of the transaction, operation, or scheme in question or has created rights or obligations that would not normally be created between persons dealing at arm's length under a transaction, operation, or scheme of nature of the transaction, operation, or scheme in question, and
- was entered into or carried out solely or mainly for the purposes of the avoidance or the postponement of liability for the payment of any tax duty or levy.
The Commissioner General may, at his sole discretion, impose this legislation on any transaction or scheme, which will place the onus of proof on the taxpayer to prove that any/all of the requirements noted above will not be applicable to the transaction or scheme.