Tax Returns - LYONEX

Tax payments must be accompanied by an accurately completed tax return.
Tax returns are mandatory for all tax-registered businesses, regardless of their trading status or financial performance.
Each tax category has its own return and submission deadline.

Corporate income tax is settled via the provisional tax system, involving advance tax payments in installments throughout the year.
Taxpayers calculate their tax payable based on estimated annual profits and make four payments in installments due on 25 March, 25 June, 25 September, and 20 December of each assessment year.
Taxpayers must submit a provisional tax return (ITF12B) indicating their tax payable or expected loss by the same due dates.
Provisional tax returns are required even if a loss is anticipated for the tax year.

Taxpayers are required to submit the annual tax return by the 30th of April of the ensuing year.
Based on actual year-end financial accounts.

Taxable income derived from transactions with related parties must align with the arm’s length principle.
Taxpayers must maintain contemporaneous documents verifying that related party transactions in the tax year adhere to the arm’s length principle.
Documentation is deemed contemporaneous if it exists by the statutory tax return filing date. Required on or before the 30th of April of the following year.

Resident or non-resident employers, with one or more employees whose gross pay exceeds the prescribed minimum tax threshold, must register with ZIMRA. They're required to withhold PAYE from employees' earnings and remit it to the Commissioner General by the 10th of the following month.
Individuals employed by multiple employers, part-time employees during a fiscal period, and those receiving pensions, annuities, or taxable income from trade and investment must complete and submit annual tax returns.
The P2 form (PAYE return) should be submitted monthly.

An annual tax return for employee taxes.
It summarizes the P2s submitted throughout the year of assessment, with the ITF16 due 30 days after the year of assessment (i.e., due on the 30th of January each year).

Value Added Tax is applied to the supply of goods, services, and imports.
Taxpayers exceeding the prescribed threshold for supplies in the past 12 months must register within 30 days of eligibility (compulsory registration).
Taxpayers anticipating they'll surpass the threshold within 12 months must apply for VAT registration (voluntary registration), substantiating their likelihood.
Registered operators must submit VAT returns by the 25th of the subsequent month.

A contract, for withholding tax purposes, refers to an agreement where a registered taxpayer, statutory corporation, or quasi-government institution is obligated to pay amounts exceeding the prescribed minimum to one or more persons.
Taxpayers must withhold 30% of the payable amount for contractors lacking a valid tax clearance.
The withheld tax must be remitted to ZIMRA within 10 days from the payment date.
Withholding tax also applies during goods importation if the importer lacks a valid tax clearance certificate.

Capital Gains Tax is imposed on profits earned from the sale of immovable assets and marketable securities.
The tax is due within 30 days from the date of the sale of the specified asset.

In the event of the sale of a specified asset, a depositary must withhold capital gains withholding tax before disbursing the amount to the concerned payee.
The withheld amount must be remitted to the Commissioner within three working days from the receipt date of the payment.

A registered taxpayer must withhold a prescribed percentage of the amount due when distributing dividends to a non-resident shareholder.
The withheld amount must be remitted to ZIMRA within 30 days from the dividend distribution date.

A registered taxpayer must withhold a prescribed percentage of the amount due when distributing dividends to a resident shareholder.
The withheld amount must be remitted to ZIMRA within 10 days from the date of distribution.

A registered taxpayer must withhold a prescribed percentage of the amount due when paying service fees to a non-resident.
The withheld amount must be remitted to ZIMRA within 10 days from the date of payment.

A registered taxpayer must withhold a prescribed percentage of the amount due when transferring allocable expenditure to a non-resident.
The withheld amount must be remitted to ZIMRA within 10 days from the payment date.

A registered taxpayer must withhold a prescribed percentage of the amount due when paying interest to a resident loan provider.
The withheld amount must be remitted to ZIMRA within 10 days from the date of interest payment.

A registered taxpayer must withhold a prescribed percentage of the amount due when paying royalties to a non-resident.
The withheld amount must be remitted to ZIMRA within 10 days from the payment date.

A registered taxpayer must withhold a prescribed percentage of the amount due when paying fees to a non-executive director for their services.
The withheld amount must be remitted to ZIMRA within 10 days from the distribution date.

For taxpayers falling under the presumptive tax category, prescribed amounts and due dates are established.
Presumptive tax applies to various entities including informal traders, small-scale miners, transport operators, hair salons, operators of waterborne vessels, cross-border traders, self-employed professionals, and others.
The tax calculation is based on presumed income.