Companies to pay double tax in forex, defaulters face jail terms and fines

Companies trading in foreign currency that fail to remit Value Added Tax in foreign currency face stiff penalties that include double payment of arrears in hard currency, the Zimbabwe Revenue Authority (Zimra) has said.

Further, firms that fail to comply with the notice of assessment within the first seven days of a period of 181 days, would be liable to a civil penalty of US$30 for every day they remain in default.

A defaulting company is not allowed to go beyond 181 days otherwise it risks, on conviction, a fine not exceeding level 10 or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.