Govt extends tax amnesty to businesses

Source: Govt extends tax amnesty to businesses | Sunday Mail (Top Stories)

Eunice Chikuhuhu
GOVERNMNT has lifted penalties, interest and legal action against persons and businesses with unsettled tax obligations to the Zimbabwe Revenue Authority.

The reprieve – effective from last Thursday and ending June 30, 2018 – gives those who owe Zimra, as of December 31, 2017, an opportunity to submit payment plans.

The amnesty comes as a relief to businesses that have expressed optimism about the future following President Emmerson Mnangagwa’s inauguration in late 2017.

Many companies experienced subdued performance for years as the previous regime instituted policies that stifled investment and competition, while also increasing the cost of doing business.

In a statement last week, Zimra said the tax relief provided businesses an opportunity to regularise their statutory obligations.

“In an effort to encourage our valued clients to regularise their tax affairs, Government has, through the Finance Act No 1 of 2018 published on March 15, 2018, made provisions for the granting of tax amnesty to persons on application,” read part of the statement.

“Any person who has unpaid tax or duty by December 1, 2017 is eligible to apply for the tax amnesty …A payment plan should be proposed by the applicant at the time of the application and the outstanding taxes or duties should be paid by June 30, 2018.”

The amnesty covers all outstanding employee (PAYE), income, value added, withholding, presumptive, and capital gains taxes, as well as customs and excise and stamp duties.