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We are always encouraging our members to be formally registered entities that comply with all national and local laws and regulations. One area that we really encourage our members to comply with is the payment of taxes. Others see the payment of taxes as an expense but to us we see it as an investment! Paying taxes and being compliant means that you can qualify for many tenders, many government programmes and also access credit. A bank is likely to give loan to someone who is tax compliant than one who is running away from tax authorities. Running away from tax authorities shows that you are ‘suspect’ and therefore your risk profile is very high!
So be tax compliant and the trick from most people entering the business sector is that make sure you pay tax from day 1. Do not wait to operate for a long period of time before deciding to be tax compliant because if you delay then its going to be difficult to adjust-so adjust from day 1. When we introduce the Diaspora Linkages Partnership programme, the first requirement is are you formally registered? If Yes then here is the bonus question, are you tax compliant? If you answer yes to the bonus question then you automatically qualify to be on our database. Paying tax is the first stage in showing that you are trust worthy but when you are operating below the radar, hiding operations and evidence of your income-then who can trust you with funds that do not belong to you? Chances are very high that you will just run away with investors funds.
Anyway this evening allow us to share with you Tax and Customs Requirements for New Businesses.You can find this information on www.zimra.co.zw.
One of the best ways of ensuring success and continuity in any business is to ensure that all statutory obligations are met in time. This article seeks to alert our valued clients who are about to start new business ventures on some of the basic requirements relating to tax and customs legislation.
Income Tax
• Some businesses, operators are required to pay Presumptive Taxes and this includes operators of omnibuses, taxi-cabs, driving schools, goods vehicles, hairdressing salons, informal traders, operators of restaurants or bottle stores, small scale miners, cottage industry operators ,operators of commercial waterborne vessels used for the carriage of passengers for profit and fishing rigs. • A tax return is required after the end of each tax year. The tax year runs from 1 January to 31 December of each year. Clients who have been specified in terms of Section 37A of the Income Tax Act [Chapter 23:06] as being on Self-Assessment are required to furnish Self-Assessment Returns in duplicate by 30th April of the following year. • Operators will also require a Tax Clearance Certificate – form ITF 263 which is issued by ZIMRA once you have met all the stipulated obligations which include submission of tax returns and remittances of tax due. If you do not have this clearance, anyone who pays you any amounts in excess of US$250.00 are required to withhold and remit to ZIMRA 10% of the amounts paid. • There is need to strictly observe the requirements in Section 80 of the Income Tax Act [Chapter 23:06]. It requires that all registered business taxpayers who enter into any contracts which result in an obligation to pay any amounts whose total or aggregate is US$250.00 or more to withhold 10% of each amount payable to payees who fail to furnish valid tax clearance certificates. Value Added Tax (VAT)
PAYE
PAYE tables are available on this website Customs and Excise • In the event that you intend to import goods, you are still required to have registered with ZIMRA so that you have the BP number that will identify you as an importer. You will need a clearing agent approved and registered with ZIMRA to handle your importations or you may register with ZIMRA to do your own clearances. • For exports, you will also need an agent to handle the exports or register on your own with ZIMRA. • You are required to keep reasonable and proper records and books of accounts for all transactions and maintain records of all the bills of entry, bills of lading, rail notes, invoices and all other documents required to be accounted for in terms of the Customs and Excise Act. Retain all records for at least six (6) years. |