Zimra upgrades PAYE Management System

The Zimbabwe Revenue Authority (Zimra) officially launched its new Employee Management Module on Monday, as part of its ongoing efforts to improve tax collection efficiency through the Tax and Revenue Management System (TaRMS) platform. The new system is set to come into effect with the January 2025 PAYE (Pay As You Earn) Return.

This module is designed to simplify the registration of employees and the declaration of their earnings, ultimately making the tax process more efficient for employers across Zimbabwe.

Speaking at the launch, Zimra Domestic Taxes Commissioner, Mr Misheck Govha, explained that the Employee Management Module will provide entities with a user-friendly platform to register their employees and declare their earnings. The system will also automatically compute taxes, reducing administrative burden on employers.

"Each registered employee will be allocated a Tax Identification Number (TIN), and those who are already registered will retain their existing TINs," Mr Govha said. "The system's ability to auto-fill PAYE and AIDS Levy for employers is one of its most notable features, streamlining the entire tax declaration process."

Key features of the new Employee Management Module include Comprehensive Employee Registration, Flexible Registration Options, Automatic Tax Computation, and the ability to declare Additional Tax Credits. Employers will now be able to register employees individually or use the Employee Upload Function to register multiple employees at once, making the process faster and more efficient.

"Employers must ensure they provide essential information such as marital status, physical disabilities, blindness, and date of birth when registering employees," Mr Govha added. "This data will allow the system to automatically grant applicable tax credits."

In addition to the core functionality, the system also introduces the option to declare other tax credits, such as Medical Aid Contributions and Medical Expenses Credits, during the earnings declaration process. This added flexibility is expected to enhance the tax credit system and provide more opportunities for tax relief.

Zimra has urged employers and taxpayers to familiarize themselves with the new module to ensure smooth compliance and a seamless transition into the system's full operation in January 2025.

Mr Govha concluded, "We encourage all taxpayers and employers to engage with the new system and start preparing for the upcoming changes to ensure a smooth and efficient transition."

The Employee Management Module represents a significant step forward in the modernization of Zimbabwe's tax administration system, aligning with global best practices in tax collection and management.