Tax Amnesty Revealed

The Zimbabwean government announced a tax amnesty to defaulting clients in a bid to encourage them to regularize their tax affairs. The amnesty is said to cover individuals, companies and corporate or unincorporated bodies of persons and trusts.

In an effort to encourage the public to regularize their tax affairs, Government, through the Finance Act No. 1 of 2018 published on 15 March 2018, made provisions for the granting of a tax amnesty to persons on application. The tax amnesty is a relief granted on penalty, interest and prosecution. The move is aimed at improving financial disclosures and widening the revenue inflows as the economy accelerates to informalisation. All outstanding taxes and duties that accrued before 1 December 2017 will be covered by the tax amnesty.

The amnesty covers all outstanding taxes or duties mentioned in the Income Tax Act (Chp.23:06), Value Added Tax Act (Chp. 23:12), Capital Gains Tax Act (Chp. 23:01), Customs and Excise Act (Chp. 23:02) and Stamp Duties Act (Chp. 23:09), Betting and Totalizator Control Act (Chap. 10:02), Tax Reserve Certificates Act (Chapter 23:10). This applies to tax or duty already known by ZIMRA and recorded on its systems or that which a person had not declared to ZIMRA but should have been paid by 1 December 2017.

Taxpayers are encouraged to check their affairs for transactions which may be a basis for outstanding taxes or duties these include non or under-declaration of sales or capital gains resulting in less taxes being paid., undervaluation of imported goods, non-payment of duty on imported goods, failure to remit any taxes withheld, non-submission of returns and incorrect declaration of customs or excise information which result in less duties being paid. A payment plan should be proposed by the applicant at the time of application and the outstanding taxes or duties should be paid by June 30, 2018.

DO NOT BE LEFT OUT. GRAB THE OPPORTUNITY AND BE DEBT FREE!