23/03/2023
TAX CLEARANCE CERTIFICATE - ITF263
What is an ITF263?
An ITF 263 is a Tax Clearance 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.
What is the Purpose of a tax clearance certificate?
Tax clearance certificate enhances business compliance profile as the taxpayer deals with other businesses.
What are the benefits of having a valid Tax Clearance Certificate?
• No 30% 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.
• A Tax Clearance Certificate is a pre-requisite when applying for licenses issued by local authorities.
• Business counterparts have confidence in doing business with compliant taxpayers.
What is required to obtain a Tax Clearance Certificate?
• Taxpayer should have registered with ZIMRA in terms of Section 42, of the Income Tax Act.
• The taxpayer must be up to date with all statutory returns required to be submitted under all Acts administered by ZIMRA, for the tax heads the taxpayer is registered for.
• The taxpayer must be up to date with all the payments in terms of all the Acts administered by ZIMRA.
• Taxpayers with outstanding tax obligations must approach ZIMRA for approved arrangements before making the application
• Taxpayers should ensure that their master data information is correct and up to date. Master data includes the following Physical Address, Email Address, Telephone Number, Bank Accounts and Industry Classification. Where email addresses being used are not the ones that are in the database, kindly fill in Rev 2 form obtainable from the ZIMRA website.
• Taxpayers registered for Value Added Tax (VAT), should ensure that they are fully interfaced for multi-currency with their invoice/ receipts showing the currency of transaction.
How does one access a Tax Clearance Certificate?
The Tax Clearance Certificate is auto-generated by the ZIMRA system to compliant clients only and thereafter, sent through email addresses that are captured in the ZIMRA database. Compliant clients are no longer required to apply for a tax clearance.
What is the validity period of a tax clearance certificate?
Tax clearances certificates for taxpayers classified as LCO and MCO clients expire on 31st December each year, while the rest of the tax clearances expire 12 months from date of issue.
How much is charged to obtain a valid Tax clearance certificate?
There is no fee that is charged for the issuance of the Tax Clearance Certificates. Taxpayers are therefore, encouraged to report to the Police or ZIMRA offices any incidents of payments purported to be for ZIMRA or ZIMRA staff to obtain the Tax Clearance Certificate.
How do we deal with ITF263 related enquiries?
For any ITF263 related enquiries, taxpayers should use the following email addresses:
• Large Client Office (LCO) – [email protected]
• Medium Clients Office (MCO) – [email protected]
• Small Clients Office (SCO) – [email protected]
• Region 2 – [email protected]
• Region 3 – [email protected]
My Taxes, My Duties: Building my Zimbabwe!!
Disclaimer
This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.
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https://www.zimra.co.zw/news/22-taxmans-corner/2235-tax-clearance-certificate-itf263-2
