Tax Clearance Certificate (ITF 263)
A Tax Clearance Certificate is a certificate issued by the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA), to a person liable to pay tax, provided that the taxpayer’s tax position is satisfactory.
Purpose of a tax clearance
Tax clearances enhances business compliance profile as the taxpayer deals with other businesses
Benefits of having a Tax Clearance Certificate
- No 10% Withholding Tax is deducted when payments are made for goods and services supplied.
- No Presumptive Tax will be levied on importations.
- Tax clearance is required when bidding for tenders.
- Business counterparts have confidence in doing business with compliant taxpayers.
What is required to obtain a Tax Clearance Certificate?
- Client should have registered with ZIMRA in terms of Section 42, of the Income Tax Act.
- The client must furnish all statutory returns required to be submitted under all Acts administered by ZIMRA, or making satisfactory arrangements with ZIMRA for the furnishing of such returns.
- The client must have paid the taxes due in terms of all the Acts administered by ZIMRA.
- Clients with outstanding tax obligations must approach ZIMRA for approved arrangements before making the application.
Who should apply for a Tax Clearance Certificate?
- A company
- Trader
- Partnership
- Individuals
