News / National
Church leaders engage Zimra over church tax
27 Oct 2017 at 14:08hrs | Views
Church leaders in Bulawayo have engaged ZIMRA officials over the taxation of religious organisations on the criteria used to define churches viewed as operating business entities.
The taxation of churches emanates from the changes to the income tax act that was signed into law in 2015 and effected in January 2016.
Indications are that most pastors are failing to remit their dues to the taxman amid confusion on how this has to be carried out.
The Zimbabwe Christian Ministers Association, Bulawayo Province coordinator has raised fears that the taxman might end up raiding churches which spend most of their collections in serving the community hence the need for a clear distinction between a church operating as a business and that operating as a charity organisation.
ZIMRA officials explained that only employees of churches will be subjected to pay tax as pay as you earn while those operating as businesses by selling replica or all other businesses are subjected to vat.
President of Hospitals and Prisons Care Ministries, Dr Isaac Silumbu expressed satisfaction over the explanations by the taxman saying this will create good working relations between ZIMRA officials and the church.
The taxing of churches targets the business venture side of the church but excludes tithes, offerings and donations.
Observers noted there's need for solid proof for donations from outside the country for exemption of duty to be executed.
The taxation of churches emanates from the changes to the income tax act that was signed into law in 2015 and effected in January 2016.
Indications are that most pastors are failing to remit their dues to the taxman amid confusion on how this has to be carried out.
The Zimbabwe Christian Ministers Association, Bulawayo Province coordinator has raised fears that the taxman might end up raiding churches which spend most of their collections in serving the community hence the need for a clear distinction between a church operating as a business and that operating as a charity organisation.
President of Hospitals and Prisons Care Ministries, Dr Isaac Silumbu expressed satisfaction over the explanations by the taxman saying this will create good working relations between ZIMRA officials and the church.
The taxing of churches targets the business venture side of the church but excludes tithes, offerings and donations.
Observers noted there's need for solid proof for donations from outside the country for exemption of duty to be executed.
Source - zbc
