Voluntary disclosure for doctors and medical practitioners

Taxpayers are encouraged to carry out their tax affairs in a manner which encourages voluntary disclosure and voluntary compliance to avoid penalties which affects business operations.

TAX compliance does not mean that Doctors should submit returns and payments to Zimra only. It also means that Doctors should calculate the correct taxes by allowing the correct tax credits on employment income and allowing correct deductions against income from trade. Doctors` income include the following: ◆ Trade income in the case of practising doctors. ◆ Investment income such as rental

income, dividends, interest etc. ◆ Employment income for Doctors on

payrolls.

Tax obligations for Doctors

Every Doctor practising in Zimbabwe has tax obligations under various tax heads as follows:

Income tax

Doctors practising as individuals are liable to register for income tax in their individual capacity. Where a Doctor is an employee and is earning a salary, PAYE is deductible on that salary by the employer and remitted to Zimra. Every Doctor who employs other people is required to withhold employees’ tax (PAYE), an amount which is determined in accordance with the tax tables relating to that year of assessment. Employees include working directors or directors who receive other benefits over and above the board fees. The due date for remittance of PAYE is on or before the 10th of the following month and such remittance should be accompanied by a remittance form (Form P2.)

Form ITF16

Every Doctor who is a registered employer is required to submit an annual return (ITF 16) of all persons employed by him detailing the salaries, wages, allowances, benefits and pension deductions for each person employed. The ITF16 should be submitted within 30 days after the end of the year of assessment and can be submitted electronically.

Withholding Taxes

In terms of Section 80 of the Income Tax Act (Chapter: 23:06), Doctors are required to withhold 10 percent on all payments to all service providers like their suppliers without a valid ITF 263 at the time of payment. Any person who enters into a contract (whether for goods or services) of $1 000.00 or more involving a single transaction or multiple transactions should comply with this legal requirement. ◆ The Doctors would then issue a withholding tax certificate showing details of the payee and amount withheld. Failure to withhold renders the payer liable for the full amount of tax and the penalty. ◆ The tax withheld and a fully completed return (REV 5) is due on or before the 10th of the month following that of withholding. For more information, please approach your nearest Zimra office.

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.

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