The Zimbabwe Revenue Authority (“ZIMRA”) issued a notice on 12 April 2022 and extended the 2021 returns dates.
This concerns income tax and capital gains tax returns deadlines in 2022 for the tax year ended 31 December 2021.
Categories of taxpayers
1. Persons in receipt of income from employment
Returns should submit returns by 30 April 2022.
2. Income from trade and investments
This applies to all taxpayers that received or accrued income from trade and investments. They should complete self-assessment returns together with relevant financial statements.
Date of submission of returns for:
- Small taxpayers – extended to 30 June 2022
- Medium taxpayers – extended to 31 July 2022
- Large taxpayers – extended to 31 August 2022
If no income was received or accrued nil returns must be submitted.
3. Submission of Transfer Pricing Return
This applies to all persons with income from domestic and/or international-related party transactions. They should submit income tax returns together with transfer pricing returns.
Returns should submit returns by 31 August 2022.
4. Dormant companies
Dormant companies are companies registered for tax but they have not carried on any trade or business for the whole of the year of assessment.
They are required to:
- submit Nil returns by 30 June 2022.
- notify the Commissioner within 30 days from the date of this notice.
Other considerations
Local/Foreign Currency
Income tax returns must be completed in local currency.
Foreign Currency returns are accepted only if the taxpayer applies in writing to the Commissioner detailing their position. They must also attach income tax returns showing that
- Taxpayers’ gross income is in both local and foreign currency and 70% of the income is in foreign currency; or
- Taxpayers’ gross income is completely in Foreign Currency; or
- Taxpayers’ gross income is in foreign currency and allowable deductions are in both local and foreign currency.
If in preparing the income tax returns, the income tax is payable in both foreign currency and local currency, the tax is apportioned based on the contribution of the respective currencies to the total turnover method or any other method as the Commissioner may approve on request.
Submission
Taxpayers are recommended to take note of the following issues:
- Income tax returns should be completed in full and submitted on time through the ZIMRA e-services platform (local currency only)
- Late submission of returns attracts penalties and interest.
- If the tax payable is in local and in foreign currency, additional schedules should be attached to show the tax computations.
- Returns with declared foreign currency components must be submitted manually using an e-mail address.
- Tax Agents who submit returns for their clients in bulk should communicate with their station managers and make an agreement on return lodgment plans well before the due date.
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