WITHHOLDING TAX ON TENDERS

ZIMRA issued a Public Notice advising taxpayers to utilize the ZIMRA portal to verify the authenticity of tax clearance certificates provided by suppliers. Taxpayers are required to withhold tax from payments made to suppliers without valid Tax Clearance Certificates on file in terms of Section 80 of the Income Tax Act (Chapter 23:06). The rate is currently 30 % of the gross invoice value with effect from 1 January 2022. The threshold is an aggregate of ZWL$130,000.00 or US$ 1,000.00 during the year of assessment effective 1 January 2022. There is risk of penalties and interest for failure to withhold and pay the 30 % WHT from payments made to suppliers without valid Tax Clearance Certificates on file.