Once you become an employer, you are required to deduct and remit PAYE from your employees’ salaries, both local and expatriate. The tax is calculated on a sliding scale basis, with lowest income earners being taxed 20% before deductions and the highest 40%. Proof of Payment along with the requisite tax return should be submitted to ZIMRA within ten days of the end of each month to avoid being penalised by the revenue authority.
In addition to this, you are also required to submit the ITF16 return within 30 days after the end of each year, detailing the annual earnings, deductions, credits, and PAYE for each employee. Both tax returns should be submitted on time, regardless of whether you have anything to declare or not. For details on the current PAYE taxation levels, please Contact Us or visit https://www.zimra.co.zw/domestic-taxes/tax-tables.
We help your business to remain compliant with the tax authorities by keeping your payroll up to date, sending you timely reminders prior to the deadlines, and submitting the returns on time to prevent your account from being penalised. Contact our Tax Department now for additional information on how we can help you keep the tax man at bay.