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ITF263 Tax Clearance
June 5, 2020
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ITF263 Tax Clearance

Tax clearance is the process by which the tax authority (ZIMRA) verifies whether a business entity or individual is in good standing with regards to tax payment. A tax clearance certificate is issued as proof of this good standing.

Benefits of tax clearance?

Tax clearance is usually needed as a requirement for doing business with other companies. There are certain situations in which your business may need tax clearance and some benefits a tax clearance certificate may give your business:

Government tenders

To participate in government tenders (almost all governement tenders require a valid tax clearance as a condition).

Commercial tenders

To participate in public tenders (this is mostly because tax registered companies prefer to do business with other tax registered companies).

Proof that you pay tax

To prove that you are tax compliant (a tax clearance certificate is proof that you are paying taxes or are putting your tax issues in order). This will help you get government tenders and also avoiding penalties or punishments.

Avoiding 10% Withholding

To avoid the 10% withholding fee (tax registered companies are required by law to withhold 10% from any company that does not have a valid tax clearance. This is levied only on order amounts above $1000 during any tax year).

Who qualifies for tax clearance?

Tax clearance is available for anyone who is liable pay any form of tax to ZIMRA. This includes both individuals and companies.

  • Individuals or companies that have paid or submitted tax returns.
  • Newly registered companies (PBCs & PLCs)  that want to trade with tax clearance requiring businesses but have not yet paid tax to ZIMRA.

Procedure for getting a tax clearance certificate

The procedure for obtaining tax clearance in Zimbabwe is as follows:

Option 1 (easy method):  Order tax clearance  and we’ll do it for you.

Option 2 (a bit more complicated):  Register with ZIMRA, submit all required documentation and apply for the tax clearance certificate.

Requirements Needed

These are the requirements for each tax service we offer:

The requirements for obtaining a tax clearance in Zimbabwe are as follows:

  • Certified copies of company papers.
  • Certified copies of directors’ IDs.
  • Proof of residence for every director (attach affidavit if proof is not in director’s name).
  • Directors’ email addresses and phone numbers.
  • Current stamped bank statement of the company.
  • Current  stamped personal bank statement of one of the directors.

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