Tax Clearance Certificate now required before registering with professional body
The Zimbabwe Revenue Authority (ZIMRA) is significantly tightening its grip on tax collection, introducing two major changes impacting both employers and specific professionals. These changes aim to improve tax compliance and broaden the tax base, generating more revenue for the nation.
Firstly, ZIMRA has launched a new Employee Management Module under its TaRMS platform, set to become operational from January 2025. This module streamlines employee registration and earnings declaration, simplifying the tax process for employers.
ZIMRA Domestic Taxes Commissioner, Mr Misheck Govha, explained: “The Employee Management Module will provide a platform for entities to register their employees and declare their earnings, allowing for automatic tax computation by the system. Each registered employee will be allocated a Tax Identification Number (TIN), and those who are already registered will retain their existing TINs.”
The module boasts several features designed to enhance efficiency and compliance. “Under the Employee Management Module, employers will be able to auto-fill PAYE and AIDS levy. After generating earnings for all employees, the PAYE and AIDS Levy will automatically populate on the PAYE return within the Tax Returns Management module.
Additionally, Employers can choose to register employees individually or utilize the Employee Upload Function to register multiple employees at once,” Commissioner Govha detailed. This automation aims to reduce administrative burdens on employers and ensure accurate tax calculations.
To fully utilise the system’s capabilities, employers must provide comprehensive employee information during registration. This includes marital status, blindness, physical disabilities (for both employees and their children), and date of birth. This data allows the system to automatically apply relevant tax credits.
“ZIMRA encourages all taxpayers and employers to familiarise themselves with the new Employee Management Module to ensure compliance and a smooth transition,” Mr Govha emphasised. The module also allows employers to declare additional tax credits, such as Medical Aid Contributions and Medical Expenses Credits, during the earnings declaration process.
Separately, ZIMRA has enforced regulations requiring valid tax clearance certificates from professionals in specific fields before their professional bodies renew or issue practising certificates. This follows Public Notice 92 of 2024, issued last month, and an amendment to Section 80A of the Income Tax Act (Chapter 23:06). Zimra communications manager, Mr Francis Chimanda, clarified the rationale behind this move.
“This has been in place for those who were compliant. Zimra, however, is now enforcing the measures for the non-compliant professionals and effective date is January 1, 2025,” Mr Chimanda explained. He stressed that obtaining a tax clearance certificate is free.
The nine professional bodies affected are Architects, Engineers and Technicians, Land Surveyors, Legal Practitioners, Auditors and Accountants, Health Practitioners, Veterinary Surgeons, Real Estate Agents and Quantity Surveyors. The tax authority’s notice clearly states: “All individuals seeking certification, registration, or licensing with their respective professional bodies must present a valid tax clearance certificate at the time of application or renewal. The tax clearance certificate must be valid no earlier than 30 days prior to its submission. Zimra encourages all professionals in these fields to ensure compliance with this new requirement to avoid any disruptions in their practice.”
The tax authority directs new registrants to use the Zimra Service Portal for registration. The application process requires users to sign in or sign up, indicating whether they are registering as individuals or organisations. Further information, such as TIN, employment period, and employment type, is then requested. Importantly, no payment is required for a tax clearance certificate.
The Nurses Council of Zimbabwe (NCZ) has already acted on this directive. In a statement, the NCZ advised all health institutions and organisations to submit lists of their ZIMRA tax-cleared personnel before registration or renewal.
The NCZ explicitly stated: “In line with the requirements of Public Notice 92 of 2024, issued on the 5th of December 2024 by the Zimbabwe Revenue Authority (Zimra), the Nurses Council of Zimbabwe wishes to advise all nurses to produce a valid tax clearance as part of the registration and renewal requirements. All health institutions and organisations are hereby required to submit a list of their Zimra tax-cleared personnel to the NCZ as a prerequisite for renewal. Please note that all nurses residing outside Zimbabwe are exempt from this requirement.”