Executive Summary
Zimbabwe’s tax authority extended the Voluntary Disclosure Programme Phase 2 to 31 March 2027, adding an express track for smaller liabilities and targeting property rental income. The 2026 Finance Act amendments—including a reduced corporate tax rate for VFEX-listed companies, a higher VAT registration threshold, new carbon and digital services taxes, and solar investment credits—are now live in the TaRMS platform. Multiple year-end filing deadlines converge in early December, alongside revised excise surtax rates and enhanced tax clearance procedures.
Important Updates
Voluntary Disclosure Programme Phase 2 Extended to 31 March 2027
ZIMRA has extended the Voluntary Disclosure Programme (VDP) Phase 2 by six months to 31 March 2027, responding to low uptake (only 1,200 disclosures by October 2026). The programme, governed by Section 15A of the Revenue Authority Act and Finance Act (No. 5) of 2024, now covers Capital Gains Tax, Intermediated Money Transfer Tax (IMTT), and Carbon Tax in addition to existing tax heads. Taxpayers benefit from a 100% prosecution waiver, 80% reduction of statutory penalties, and 50% interest reduction on full disclosure with payment arrangements. A new “VDP Express” track for liabilities under US$10,000 enables automated TaRMS processing within 48 hours.
The extension coincides with a targeted compliance push on property rental income. ZIMRA matched 45,000 property titles against TaRMS records, identifying 18,000 potential non-filers. Rental income is subject to Income Tax at marginal rates up to 40% for individuals and 24.72% for companies, plus VAT where annual turnover exceeds US$60,000. A dedicated “Rental Income VDP” portal simplifies disclosure of property addresses, rental periods, gross receipts, and allowable expenses. ZIMRA will issue “nudge letters” to identified property owners in November 2026, and non-disclosure risks full penalties plus criminal prosecution.
Multinational enterprises can use the window to regularize thin capitalization, transfer pricing, and treaty shopping positions. Disclosures must be voluntary, complete, and made before any ZIMRA audit notification. Payment of disclosed tax or the first instalment of an approved plan is due at application, with interest accruing at 1.5% monthly on unpaid balances. Confidentiality is guaranteed under Section 34 of the Revenue Authority Act. Taxpayers who participated in Phase 1 (2023-2024) may supplement prior disclosures.
Sources: ZIMRA Public Notice 55 | ZIMRA Public Notice 51
2026 Finance Act Amendments Deployed in TaRMS
Public Notice 50 of 2026 confirms the successful deployment of all Finance Act (No. 3 of 2026) amendments into the Tax and Revenue Management System (TaRMS), effective for transactions from 1 January 2026. Key changes now live include: (1) Corporate Income Tax rate reduction from 24.72% to 22% for companies listed on the Victoria Falls Stock Exchange (VFEX); (2) VAT registration threshold increased from US$60,000 to US$80,000 annual turnover; (3) Introduction of Carbon Tax at US$0.05/litre on petroleum products and US$5/tonne on coal with auto-calculation for fuel importers; (4) Expansion of Withholding Tax on services to include digital services (streaming, cloud, software) at 10% for non-residents without a permanent establishment; (5) Enhanced Capital Gains Tax exemptions for VFEX-listed securities held over three years; (6) IMTT exemption for transactions below ZWL 500; (7) New tax credits for solar energy investments at 15% of cost, capped at US$50,000.
The amendments directly impact VFEX-listed entities (e.g., Seed Co, Padenga, Axia), digital service providers (Netflix, AWS, Google), fuel importers, mining companies, SMEs benefiting from the higher VAT threshold, and renewable energy investors. Cross-border digital economy taxation aligns with OECD BEPS Action 1 principles. Tax agents must update client profiles in TaRMS, and taxpayers are urged to review auto-populated returns for accuracy. ZIMRA will issue revised ITF 12C (Provisional Tax), VAT 7, and CGT 1 forms reflecting the changes.
These changes affect immediate compliance obligations: the fourth quarter provisional tax payment (due 10 December 2026) must incorporate the new CIT rate for VFEX companies and Carbon Tax liabilities. Monthly VAT returns and annual CIT returns (due 30 April 2027) will reflect the updated threshold and credits. System bugs should be reported via the TaRMS helpdesk or FDMS support channels referenced in Public Notice 37 of 2026.
Sources: ZIMRA Public Notice 50
Secondary Regulatory & Regional Updates
- November 2026 Tax Returns Due 5 December: Public Notice 61 sets the filing and payment deadline for all tax heads (Income Tax, VAT, PAYE, Withholding Taxes, Capital Gains Tax, Customs & Excise) to 5 December 2026 via TaRMS. Mandatory electronic filing and payment through approved channels; late submissions attract 10% penalty plus 1.5% monthly interest. ZIMRA Public Notice 61
- Revised Tax Clearance Certificate (TIP) Procedures Effective 21 October: Public Notice 60 introduces real-time TaRMS verification for TIP issuance, requiring zero outstanding returns and arrears across all tax heads. A new conditional TIP (90-day validity) is available for taxpayers with approved payment plans. All applications must be submitted via TaRMS e-services; physical applications discontinued. ZIMRA Public Notice 60
- Fourth Quarter Provisional Tax Payment Due 10 December 2026: Public Notice 58 sets the Q4 provisional tax payment deadline for companies, trusts, and individuals with non-employment income. Taxpayers must pay the higher of 25% of estimated 2026 liability or 25% of actual 2025 assessed tax. Underestimation penalties of 20% apply if estimate falls outside 10% safe harbour. ZIMRA Public Notice 58
- Excise Duty and Special Surtax Filing Changes; Sugar-Sweetened Beverage Surtax Increased: Public Notice 56 mandates monthly Excise Duty and Special Surtax returns by the 10th of the following month via a new TaRMS Excise Accounting Module requiring real-time stock reporting. The Special Surtax on sugar-sweetened beverages rises from US$0.02/g to US$0.03/g per gram of sugar exceeding 5g/100ml effective 1 November 2026. November returns due 10 December 2026. ZIMRA Public Notice 56
- ATAF Meeting in Victoria Falls Strengthens Continental Tax Cooperation: The African Tax Administration Forum convened in Victoria Falls on 14 October 2026, focusing on information exchange, capacity building, and joint audits. While no immediate legislative changes resulted, enhanced cross-border cooperation signals increased scrutiny for multinationals on transfer pricing, permanent establishment, and withholding tax protocols across ATAF member states. ZIMRA News
- ZIMRA Intercepts Smuggled Controlled Medicines Worth US$23,375: A customs enforcement operation on 6 November 2026 seized controlled pharmaceuticals, highlighting intensified enforcement on high-risk commodities. Importers, clearing agents, and logistics operators must ensure valid MCAZ permits, correct HS Code 3004 classification, and electronic document submission via ASYCUDA World. Penalties include forfeiture, fines up to three times the goods’ value, and criminal prosecution. ZIMRA News
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.