Tax Clearance Certificates

What is a Tax Clearance Certificate?
A tax clearance certificate is a document that is issued by the Commissioner-General of the Zimbabwe Revenue Authority (Zimra) to a person liable to pay tax under any of the Acts administered by the Zimbabwe Revenue Authority.

The certificate is issued upon request to a person whose tax affairs are up-to-date or has made satisfactory tax compliance arrangements with Zimra. The Commissioner-General of Zimra may issue a tax clearance certificate upon request by a taxpayer responsible for the payment of taxes as mandated under the Revenue Authority Act.

Types of Tax Clearance Certificate issued by the Commissioner-General of Zimra

The following are the tax clearance certificates currently being issued by the Commissioner-General of Zimra. The documents to be submitted by the applicant are also listed:

1. Income Tax Clearance Certificate  (ITF 263).

This is a tax clearance certificate that is issued to traders. A person applying or collecting a tax clearance on behalf of a company, an individual, a partnership or an organisation should produce:

    A letter of authority to do so;
    Identification to that effect;
    CR 14 form in the case of company directors.

2. Capital Gains Tax Clearance Certificate (CGWT 4 A).
This is a clearance certificate that is issued on the sale of immovable property and other specified assets. The requirements for issuance are as follows:

    Fully completed  Capital Gains Tax form (CGT1);
    Fully completed Rev 1 form (for new registrants);
    Agreement of sale (copy and original);
    Deed of Transfer (Title Deed)/share certificate (copy and original);
    Copy of proof of payment of the sale price;
    National identification of both the seller and the buyer (copy and original);
    Copies of two different utility bills if seller is claiming roll-over/exemption;
    Special power of attorney sealed by notary public if  the buyer/seller is out of the country or is unable to present oneself at Zimra offices for good reason and is being represented by an agent (copy and original)
    Certified copy of certificate of incorporation (for new company registrants);
    Certified copy of  CR6 and CR14 (for companies);
    Copy of company resolution to sell/buy the specified asset. Resolution appointing representatives or special power of attorney appointing directors (for companies);
    Additional information for deceased estates.

In case of deceased estates the information above is required and in addition the following:

    Certified copy of the death certificate of the deceased person;
    Certified copy of the final liquidation and distribution account of the deceased estate;
    Certified copy of the letter of administration from the court specifying the executor/executrix of the estate;
    Letter from the court giving authority to dispose of the property in question;
    Additional information for minors;
    If the sale of a specified asset involves a minor, the following is also required:
    Letter of authority from the High Court authorising the sell;
    Birth certificate of the minor;
    Letter of guardianship from the court if the person representing the minor is not the parent;

3. Tax Clearance Certificate for Opening a Bank Account.

This is a tax clearance required by a bank when a company is opening an account and the original certificate of incorporation is required.

4. Foreign artiste clearance.

A foreign artiste who comes to perform in Zimbabwe is required to get a tax clearance from Zimra and should submit the following for issuance:

Contract of engagement;

    Application letter from promoter;
    Letter from National Arts Council of Zimbabwe;
    Copy of passport(s) of the artiste(s);
    Proof of payment for the contract fee;
    Valid ITF 263 for the local promoter;

5. Other Tax Clearance Certificates
Special tax clearance certificates are also issued for:

    Someone leaving the country (departure case);
    Deceased estates;
    Directors of companies;

In each case appropriate documents will be required.

What happens if any of the above requirements are not satisfied?

Where one does not have the appropriate tax clearance certificate for the above situations either:

    The service or business required cannot be transacted; or
    In the case of Income Tax Clearance and Capital Gains Tax Clearance, a 10 percent Withholding Tax is deducted by persons properly authorised by the law.

Clients are also reminded and urged to submit complete and correct information in order to avoid delays in the processing of tax clearance certificates.

Is a fee charged for the issuance of a tax clearance certificate?

Our valued clients are also informed that no fee is charged for the issuance of the tax clearance certificates. Clients are therefore encouraged to report to the police or Zimra offices, any incidents of people charging any fees for obtaining this document.

Reminder for payment of tax

Our valued clients are reminded that VAT for the month of April is due on or before the 25th of May 2013.

Disclaimer: This article was compiled by the Zimbabwe Revenue Authority for information purposes only. Zimra shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.
To contact Zimra: Visit our website:  www. zimra.co.zw
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