Fi­nal De­duc­tion Sys­tem: Year-end Pro­ce­dures

All em­ploy­ers are on Fi­nal De­duc­tion Sys­tem (FDS), which means that they cal­cu­late and re­mit the cor­rect Pay As You Earn (PAYE) to ZIMRA. There are pro­ce­dures that should be com­pleted and re­turns sub­mit­ted as de­tailed be­low:

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End of Year Ad­just­ment

Em­ploy­ers are ex­pected to rec­on­cile their pay­rolls and en­sure that the cor­rect tax is col­lected per em­ployee by end of the year.

At the end of the year, the em­ployer must make fi­nal ad­just­ments to PAYE cal­cu­la­tions, tak­ing into ac­count the to­tal in­come, de­duc­tions and cred­its to which the em­ployee is en­ti­tled.

In the case of short­falls, the em­ployer is obliged to make good the short­falls and re­mit the tax and re­cover the short­falls from em­ploy­ees on the fi­nal pay­roll. Where there are re­funds, em­ploy­ers should also re­fund the em­ploy­ees on the fi­nal pay­roll for the year.

The em­ployer should then ex­tract the ITF 16 Re­turn and sub­mit to ZIMRA by 30th-Jan­uary 2018.

Is­sue of Tax Cer­tifi­cates

All em­ploy­ees whose re­mu­ner­a­tion was sub­ject to PAYE are en­ti­tled to be is­sued with tax cer­tifi­cates (Forms P6) for their records. The em­ployer is re­quired to is­sue forms P6 within 30 days from the end of the rel­e­vant year, or within 30 days of ter­mi­nat­ing em­ploy­ment ser­vices as the case may be. Forms P6 for the em­ploy­ees who are em­ployed by the same em­ployer for the full tax year should be marked

FDS on the face.

Sub­mis­sion of Re­turns (Forms ITF 1) This is for all those em­ploy­ees who:--

i. Ter­mi­nate em­ploy­ment dur­ing the year of as­sess­ment;

ii. Change em­ploy­ment dur­ing the year;

iii. Work part time at the same time be­ing fully em­ployed by an­other em­ployer;

iv. Start em­ploy­ment dur­ing the course of the year;

v. Re­ceive pen­sions;

vi. Are ex­ecu­tors/ ex­ecutrix of de­ceased es­tates;

vii. Are in re­ceipt of in­come which is not sub­ject to PAYE

All em­ploy­ees who are re­quired to sub­mit a re­turn will be no­ti­fied by the Com­mis­sioner Gen­eral by no­tice in the press. This no­tice is usu­ally pub­lished in first quar­ter of each year.

Who should not sub­mit re­turns of in­come?

All those em­ploy­ees whose in­come con­sists of em­ploy­ment in­come only and whose em­ployer was di­rected to ad­min­is­ter PAYE un­der the FDS sys­tem and did so dur­ing the year con­cerned, and the em­ployee was in con­tin­u­ous em­ploy­ment with the same em­ployer for the whole year.


The fourth in­stal­ment un­der Quar­terly Pay­ment Dates (QPDs) is due by 20th De­cem­ber 2017.

◆ 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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