Voluntary disclosure: Payment of withholding taxes
THE Income Tax Act (Chapter 23.06) requires payers of certain amounts to withhold taxes on making the payments to the payees. These taxes withheld are usually referred to as Withholding Taxes. It is therefore, important for every payer of an amount to ensure that the correct withholding tax is collected and remitted to Zimra.
The Withholding Taxes payments should be accompanied with a Withholding Tax Return (REV 5). A schedule should be attached to the REV5 indicating the details of the taxes withheld.
For any persons that have already failed to submit the Withholding Tax Returns (REV5) they are encouraged to take advantage of the Voluntary Disclosure Program and be compliant.
No penalties shall be charged for late submission of returns under the Voluntary Disclosure Program but interest remains due and payable.
Benefits of making a Voluntary Disclosure under Voluntary
Disclosure Programme
◆ Penalties, civil penalties, fines
and additional tax shall be waived in full
◆ Outstanding tax debts are paid on agreed payment terms
◆ Business is free from the burden of non-compliance
◆ Access to tax clearances certificates for compliant taxpayers
◆ Business managers and owners can focus on running their businesses thereby reducing costs of compliance.
Period covered by Voluntary
disclosure Applications for voluntary disclosure shall be made from 1 July 2018 to 31 December 2018.
Assurances to the Applicant The information for voluntarily disclosed shall not trigger an audit, investigation or prosecution. Withdrawal of voluntary
disclosure
The voluntary disclosure benefits shall be withdrawn where the client fails to honour payment arrangements agreed on with ZIMRA, without seeking for alternative agreement payment arrangements.
Please Note: REV 5 Returns are submitted manually at your nearest ZIMRA office.
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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