PRESENTATION ON TAXATION OF THE

MICROFINANCE INDUSTRY.
OBJECTIVES
Why taxation
Taxation of MICROFINANCE INDUSTRY
Tax obligations and registration requirements
 Income Tax
 PAYE
 V.A.T
 Presumptive Tax
 Withholding Tax
WHY TAXATION
Taxation is important as it provides the necessary
funding for the country’s development.
The following tax acts authorise ZIMRA to collect
taxes for the benefit of the Consolidated Revenue
Fund:
 Income Tax Act –(Chapter 23:06)
VAT Act (Chapter 23:12)
Capital Gains Act (Chapter 23:01)
Finance Act (Chapter 23:04)
Who is required to register for tax
purposes
The following persons are required to register for tax
purposes.
a.Company
b.Trust
c.Individual
d.Private Business Corporation
e.Partnership
f.Association, Cooperative etc
Documents Required for Registration: Individual
Documents Required for
Registration: Company
 Rev 1
 Certificate of Incorporation;
 CR14: contains details of directors
 CR6: contains registered address of company
 Stamped current Bank Statement;
 Memorandum of Association (1st 3 pages plus the
last page)
 Articles of Association (1st 3 pages plus the last
page)
 Company registration Cont’d
Documents for at least 2 Directors
Identity card;
Proof of residence in form of utility bills, support
with affidavit if bill is not in your name.
Company registrations cont’d
Documents for the Public officer
Letter of appointment as public officer, stating the
name, ID Number, Residential address and a
statement to the effect that the public officer is a
signatory to the company’s bank account;
Identity card
Stamped current bank statement;
Proof of residence in form of utility bills, support
with affidavit if not in your name
Documents Required for Registration: PBC
Organisational Documents

PBC 2:
Stamped current Bank Statement;
Payroll schedules if applying for the PAYE contract account
Documents for the Member/s (2 if more than 1)
Identity card
Proof of residence in form of utility bills, support with affidavit if not
in your name.
Documents for the Public officer
Letter of appointment as public officer, stating the full name, ID
Number, Residential address and a statement to the effect that the
public officer is a signatory to the company’s bank account;
Identity card
Stamped current bank statement;
Proof of residence in form of utility bills, support with affidavit if not
in your name
TAX OBLIGATIONS
The main tax heads used for the collection of tax revenue
are;
Income Tax
P.A.Y.E
VAT
Presumptive Tax
Withholding Tax
INCOME TAX
Income tax is tax chargeable on taxable income from
trade and investment at the rate of 25% plus Aids levy
of 3% of tax chargeable. The tax calculated is paid
through Quarterly Payment Dates.
QPDS 2017
25 March 10%
25 June 25%
25 Sept 30%
20 Dec 35%
The taxpayer is required to complete ITF 12B: Return of
the provisional tax due
Income Tax Cont’d.
The final Income Tax Return (ITF 12C) is electronically or
manually submitted
All Clients are now on self assessment
P.A.Y.E
P.A.Y.E is tax charged on taxable income from
employment at the rates specified in tax tables.
P2 Return
• This is a monthly return
• Every employer who pays or becomes liable to pay any
amount by way of remuneration to any employee shall
deduct that amount by way of employee’s tax any amount
which shall be determined in accordance with the
prescribed Pay As You Earn Tax Tables.
• The due date for remittance of PAYE is on or before the
10th of the following month and such remittance should
be accompanied by a Form P2.

05/05/21 ZIMRA Region one CCU 13

P.A.Y.E Cont….
ITF16 Return
•Every registered employer is required to submit returns of
all persons employed by him detailing the salaries, wages,
allowances, benefits and pension deductions for each person
employed.
•The due date for submission of ITF16 is within 30 days after
the end of the year of assessment and can be submitted
electronically. (for example: the due date is 30 January 2017
for 2016 tax year)
•(Please note that ITF16 returns are different from P2 returns
that are submitted monthly with PAYE payments)
05/05/21 ZIMRA Region one CCU 14
VAT
The threshold for registering for VAT is USD60
000 per 12 consecutive months
Clients can be registered for VAT when they have
met threshold or if they have shown that they can
surpass the minimum threshold within the next 12
consecutive months.
VAT REGISTRATION
REQUIREMENTS
• Must be registered with ZIMRA and have
a Business Partner number (BP no).
• Completed REV 1 Form
• Current bank statement
• Proof that registration threshold has
been met or will be met
VAT REGISTRATION
REQUIREMENTS: Proof of threshold
(cont’d.)
• Sales schedule from the time of commencement of
trade to date.
• Invoices from the time of commencement of trade to
date (with customers’ phone numbers) / confirmed or
signed contracts.
• Invoices for supplied goods/services, bank statement,
lease agreements etc

VAT Categories are

• Category A
• Category B and
• Category C
• Category D
VAT DUE DATE
• Due date 25th of the following month after end of tax
period
WITHHOLDING TAX
Section 80 of the Income Tax Act
Where a client is engaged in a contract aggregating
USD 1000 or more and the client is not tax compliant
there shall be withheld 10% of the aggregate of 1000 or
more united states dollars.
Therefore, where one does not have a valid tax
clearance certificate deduct 10%
To be remitted by the 10th of following month on Rev
5 form
ZIMRA TAXPAYER EDUCATION
ZIMRA is there to serve:
Help Desk: walk-in clients, calls, e-mails, letters
Liaison Officers: allocated to particular portfolio of
taxpayer
Direct access to ZIMRA Management: where you are
not happy with service provided, insist on seeing the
next senior level (Supervisors, Managers, Regional
Managers, Commissioner, Commissioner General)
For more information
ZIMRA CLIENT CARE:KURIMA HOUSE
GROUND FLOOR
Website- www.zimra.co.zw
Queries desk: 795710
Comments, Suggestions,
Questions
Thank You