ZIMRA’s New One-Month Tax Clearance Certificates Explained: What They Mean For Your Business

The Zimbabwe Revenue Authority (ZIMRA) has announced a significant change to its Tax Clearance Certificate (ITF263) system. Starting on 27 December 2025, compliant taxpayers will receive certificates that are valid for only one month, a major shift from the previous practice where certificates were valid for longer periods. This change, outlined in Public Notice 69 of 2025, introduces a system of continuous monthly compliance checks.

Here is a detailed breakdown of what the new rules mean for your business and why they have sparked a major debate.

What Are The New Rules For Getting A Certificate?

According to the ZIMRA notice, from 27 December 2025, 2026 Tax Clearance Certificates will be automatically issued each month to taxpayers who meet all compliance conditions. The system leaves no room for error, as a failure to meet any condition will result in the loss of the certificate for the following month.

The three non-negotiable pillars of compliance are:

1. Return Submission: All tax returns (Income Tax, VAT, PAYE, etc.) must be submitted by their statutory due dates. Outstanding returns from any prior period must be submitted before a clearance can be considered.

2. Tax Payment: All principal taxes, penalties, and interest must be paid in full. The sole exception is for taxpayers with an officially approved ZIMRA payment plan, and they must be adhering to it consistently.

3. Fiscalisation for VAT Taxpayers: VAT-registered businesses must be registered on the Fiscalisation Data Management System (FDMS). Their fiscal devices must be operational, correctly configured, and transmitting sales data to ZIMRA daily or periodically.

The notice is unequivocal about the consequences of failing any of these points, stating:

“any lapse in compliance will result in the suspension of the subsequent month’s clearance.“

A Wave of Business Concern: Efficiency, Burden, and Fairness

The announcement on 17 December 2025 triggered an immediate and vocal backlash from entrepreneurs, accountants, and business owners across social media, with criticism focusing on several key areas.

The Overwhelming Administrative Burden
The most consistent complaint is the immense new workload created, particularly for companies that manage numerous suppliers. Business owner Reggie Manditereza captured this sentiment perfectly:

“It’s clear that whoever proposed monthly tax clearances has no experience in industry. Requiring us to collect, verify, and file hundreds of clearances every month for every single supplier being paid, is an enormous administrative burden….in fact, it is a full-time job on its own.”

This view was widely echoed. User @ABENSUNDU stated,

“There’s absolutely no need to do a tax clearance 12 times/yr.”

Another user, @Samankazana, asked the practical question,

“so every month one has to ask for tax clearance from suppliers?”

Contradiction with National Economic Goals
Many commenters explicitly stated the policy undermines official goals to improve the business climate. Kudzai M Mubaiwa posted succinctly,

“So much for ease of doing business.”

Cloude Farai Mukanganise argued the policy is misaligned, saying,

“I dont think monthly tax clearances is in line with ease of doing business to achieve NDS2 [National Development Strategy].”

Practical Pitfalls and System Doubts
Users raised serious operational concerns:

• Cash Flow Challenges: Commenter Kudzai Mubaiwa highlighted a critical flaw: “How is monthly tax clearance even practical? Did you consider those who get paid after several months? How are they expected to meet these obligations?”

• Technical Reliability: Given past issues, doubts about ZIMRA’s system readiness were rampant. Mubaiwa added, “I hope this works because your system is known to crash.”

Perception of Unfair Targeting
A strong sentiment emerged that the rule penalises formal, compliant businesses while being ineffective against non-compliance. Heritage Nyika questioned the logic:

“Hezvo! Saka vese vaibhadhara tax yavo zvakanaka vawe kutonzi pamwedzi pamwedzi. Zvino makambofungawo here kuti pakaita wakavanda vasina Tax clearance vanongo panana zvinhu pasina Tax clearance.”
(Translation: “So all those who were paying their tax properly are now told monthly. Did you even think about those who are hiding, without a Tax clearance they just do things without a Tax clearance?”)

Yogini Shah called it a “draconian measure” that leaves “the truly non compliant businesses…get to carry on living simpler and happier lives unbothered and unharrassed by ZIMRA.”

Calls for Rethinking and Consultation
The announcement was seen as a top-down decree. Henry Nemaire advocated for a consultative approach:

“Unilateral changes not the way to go. Best is to go to BMOs [Business Member Organizations] and suggest changes discuss then put out changes.”

Others, like Blessing Ncube, suggested a compromise:

“ZIMRA atleast 3 months tax clearances, one month is not fair.”

What Are The Direct Consequences of Non-Compliance?

The core function of the ITF263 is to serve as proof of good tax standing. Without a valid, current certificate, a business faces significant operational and financial blocks.

The ZIMRA notice ends with a stark reminder:

“ALL TAXPAYERS MUST SUBMIT THEIR RETURNS AND MAKE PAYMENTS IN FULL ON OR BEFORE THE DUE DATES. FAILURE TO COMPLY WILL RESULT IN PENALTIES AND/OR PROSECUTION.“

Practically, a lapsed certificate can mean:

• Inability to secure new contracts, as most corporations and government entities require a valid clearance.

• Disqualification from applying for licenses, loans, or official tenders.

• Exposure to a 10% withholding tax on gross payments from clients, which can severely impact cash flow and profitability.

The new system, therefore, places continuous compliance at the very centre of day-to-day business operations, with immediate monthly consequences for any lapse.