Tax amnesty 2018
IN an effort to encourage our valued clients to regularise their tax affairs, Government has, through the Finance Act No. 1 of 2018 published on 15 March 2018, made provisions for the granting of a tax amnesty to persons on application. Persons include companies, corporate or unincorporated body of persons and trusts.
Tax amnesty is relief granted on penalty, interest and prosecution. 1. Who should apply for Tax Amnesty? Any person who has unpaid tax or duty by 1 December 2017 is eligible to apply for tax amnesty. This applies to tax or duty already known by ZIMRA and recorded on its systems or that which a person had not declared to ZIMRA but should have been paid by 1 December 2017. The tax or duty should have been due and payable before 1 December 2017.
2. What period is covered by the tax amnesty?
The period covered by the amnesty is the period before 1st December 2017. All outstanding taxes and duties that accrued before the specified date will be covered by the tax amnesty.
3. When should a person apply for the tax amnesty?
Applications for tax amnesty should be submitted from now until 30th June 2018.
4. Which taxes are covered by the tax amnesty?
The amnesty covers all outstanding taxes or duties mentioned in the Income Tax Act (Chp.23:06), Value Added Tax Act (Chp. 23:12), Capital Gains Tax Act (Chp. 23:01), Customs and Excise Act (Chp. 23:02) and Stamp Duties Act (Chp. 23:09). Betting and Totalisator Control Act (Chap. 10:02), Tax Reserve Certificates Act (Chapter 23:10).
This includes the following: Employees Tax (PAYE), Income Tax, Value Added Tax, Withholding Taxes, Presumptive Tax, Capital Gains Tax, Customs and Excise Duties, Stamp duties.
Taxpayers are encouraged to check for the following, which may be a basis for outstanding taxes or duties:
Non- or under-declaration of sales or Capital Gains resulting in less taxes being paid. Undervaluation of imported goods. Non-payment of duty on imported goods.
Non-payment of Income Taxes, Presumptive Tax, VAT and Capital Gains Tax as well as failure to remit any taxes withheld.
Failure to adhere to conditions of the operation of a bonded warehouse or private siding Non-submission of returns.
Incorrect declaration of customs or excise information which result in less duties being paid.
How and where do you apply for the tax amnesty?
Persons who wish to apply for the amnesty must:
Complete the application Form TA01 in full. The form is obtainable from the ZIMRA website www.zimra.co.zw.
Declare outstanding taxes or duties that are on returns or assessments captured on ZIMRA systems by 1 December 2017 or outstanding taxes and duties not declared to ZIMRA but unpaid by 1 December 2017.
Ensure the form is completed legibly in indelible ink.
Submit the application to their nearest ZIMRA office or send scanned copies using the following email addresses:
(a) LCO & MCO amnestylcomco@zimra. co.zw for clients in Large & Medium Client Offices (b) Region1 amnestyRegion1@zimra.co.zw for clients in Region 1
(c) Region2 amnestyRegion2@zimra.co.zw for clients in Region 2
(d) Region3 amnestyRegion3@zimra.co.zw for clients in Region 3
(e) Customs customsamnesty@zimra. co.zw for clients with applying tax amnesty on customs issues.
Outstanding returns or bills of entry should be submitted on-line for VAT, Income Tax, Paye, Customs and Excise, and manually for Withholding Taxes and Capital Gains Tax 6. How does one pay the tax? A payment plan should be proposed by the applicant at the time of application and the outstanding taxes or duties should be paid up by 30th June 2018. It is important to note that tax amnesty is granted on the amount of outstanding tax or duty actually paid.
Payments should be made while the applications are being submitted and processed meaning there is no need to wait for approval as tax amnesty shall be granted to the extent of outstanding taxes or duties actually paid by 30 June 2018.