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Your Guide to ZIMRA, NSSA, and PRAZ in Zimbabwe

 

 

Running a business in Zimbabwe is an exciting journey, but it comes with a set of "silent partners"—the regulatory authorities. Staying on the right side of ZIMRA, NSSA, and PRAZ isn't just about following the law; it’s about protecting your business’s future and unlocking doors to massive opportunities. In this guide, we break down your essential obligations forever as long as you're still in the business.

 

 

 

 

What is a Tax Return for ZIMRA?

 

A tax return is an official declaration made to the Zimbabwe Revenue Authority (ZIMRA) reporting your income, expenses, and other relevant financial information. Think of it as a "financial report card" that you submit to the government. With the recent full rollout of the Tax and Revenue Management System (TaRMS), these returns are now submitted online through the Self Service Portal (SSP). Filing a return tells ZIMRA how much tax you owe—or in some cases, if you are due for a refund.

 

 

Common Types of ZIMRA Taxes

 

Depending on your business structure and size, you may be liable for several "tax heads." Here are the heavy hitters:

 

 

• Corporate Income Tax (CIT): A tax on the annual profits of your company.

 

• Pay As You Earn (PAYE): Tax deducted from your employees' salaries. If you have staff earning above the tax-free threshold (currently ZiG 2,800 or US$100 per month), you must remit this by the 10th of every month.

 

• Value Added Tax (VAT): A consumption tax added to the price of goods and services. If your annual turnover exceeds the registration threshold, you must collect and remit VAT.

 

• Presumptive Tax: Aimed at the informal sector and small operators (like transport operators or hair salons) who might not have full accounting records.

 

• Intermediate Money Transfer Tax (IMTT): The tax charged on electronic transfers (currently 1.5% for local currency ZiG and 2% for USD).

 

 

Beyond ZIMRA: NSSA and PRAZ Obligations

 

Tax isn't the only thing on your compliance checklist. To be a fully "healthy" business, you need these two:

 

 

NSSA (National Social Security Authority)

 

Every employer is legally required to register with NSSA within 30 days of hiring their first employee.

 

• The Obligation: You must remit monthly contributions (currently 4.5% from the employee and 4.5% from the employer) to the Pension and Other Benefits Scheme (POBS).

 

• The Deadline: Contributions and monthly returns (Form P4A) are due by the 10th of each month.

 

 

PRAZ (Procurement Regulatory Authority of Zimbabwe)

 

If you want to supply goods or services to the Government of Zimbabwe, local authorities, or Parastatals, you must be registered with PRAZ.

 

• The Obligation: An annual registration on the electronic Government Procurement (eGP) system.

 

• The Result: You receive a PRAZ Certificate, which is your "ticket" to bid for government tenders.

 

 

Why Should You Be Compliant?

 

Compliance can feel like a chore, but the benefits are massive:

 

• 1. Avoid Heavy Penalties: ZIMRA and NSSA charge significant interest and penalties for late filings. In some cases, fines can exceed the original tax amount.

 

• 2. Get Your ITF263 (Tax Clearance): Without this certificate, other businesses are required by law to withhold 30% of any payment they owe you or choose not to work with a business without a Tax Clearance Certificate.

 

• 3. Unlock Tenders: You cannot bid for any government or large corporate contract without a valid PRAZ certificate and ZIMRA clearance.

 

• 4. Peace of Mind: Avoid the stress of audits, "naming and shaming" in public notices, or the risk of your business premises being sealed.

 

 

 

Let Us Handle the Paperwork!

 

Does the thought of TaRMS, NSSA portals, and PRAZ categories give you a headache? You don't have to do it alone. We offer a "Full Compliance Suite" to keep your business running smoothly include:

 

• ZIMRA Management: We handle your monthly PAYE, VAT, and annual Income Tax returns via TaRMS.

 

• NSSA Account Management: From registration to monthly P4A submissions, we ensure your employees are covered and covered and your account is up to date.

 

• PRAZ Registration: We guide you through the eGP system to ensure you get your registration certificate without the back-and-forth.

 

Get Started 

Ready to get your business in order? Click here to see our tax returns and compliance pricing plans to secure your business's future.

 

 

Book a FREE consultation meeting today or early next week?  

 

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