WHAT IS A TAX CLEARANCE CERTIFICATE?
A Tax Clearance Certificate (ITF 263) is a certificate issued by the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA) to a person liable to pay tax, provided that the taxpayer’s’ tax position is satisfactory.
Benefits of having a Tax Clearance Certificate
No 10% Withholding Tax is deducted when payments are made for goods and services supplied.
No Presumptive Tax will be levied on importations.
Tax clearance is required when bidding for tenders.
A Tax Clearance Certificate is a pre-requisite when applying for licences issued by local authorities.
Business counterparts have confidence in doing business with compliant taxpayers
What is required to obtain a Tax Clearance Certificate?
The client must furnish all statutory returns required to be submitted under all Acts administered by ZIMRA, or making satisfactory arrangements with ZIMRA for the furnishing of such returns.
The client must have paid the taxes due in terms of all the Acts administered by ZIMRA.
Clients with outstanding taxes, penalties and interest must make suitable arrangements, which are approved by ZIMRA.
Value Added Tax (VAT) registered clients must have their systems interfaced with ZIMRA servers under the fiscalisation programme. However, tax clearance certificates may be availed to clients who have made noticeable efforts to get interfaced.
Who qualifies for a tax clearance?
Tax clearance is available for anyone who is liable pay any form of tax to ZIMRA. This includes both individuals and companies.
Individuals or companies that have paid or submitted tax returns.
Newly registered companies that want to trade with tax clearance requiring businesses but have not yet paid tax to ZIMRA.
Requirements for tax clearance in Zimbabwe
The requirements for obtaining a tax clearance in Zimbabwe are as follows:
- Certified copies of company papers.
- Certified copies of directors’ IDs.
- Proof of residence for every director (attach affidavit if proof is not in director’s name).
- Directors’ email addresses and phone numbers.
- Current bank statement of the company.
- Current personal bank statement of one of the directors.
Procedure for getting a tax clearance cerificate
At Teamhouse we are here to help you obtain your tax clearance for the year 2020.
- We initiate the ZIMRA registration process.
- Go on secure your Business Partner(BP) number.
- Open a business bank account for your company.
- Prepare and submit your business tax papers.
- Receive a valid ITF263 tax clearance certificate.