Landlords To Submit Tenant Registers Every 3 Months: Mthuli Ncube’s New Rental Income Tax Rules

Mthuli Ncube Gets Tough On Rental Income Tax, Requires Property Owners To Submit Tenant Registers Every 3 Months

Finance Minister Mthuli Ncube is getting tough on rental income tax, unveiling a powerful new plan that will force landlords with tenants running businesses to hand over their tenant details to the taxman every three months. The move, announced in his 2026 National Budget Statement presented on 27 November 2025, builds on a tax he introduced just a year prior. The new regime takes effect from 1 January 2026, giving property owners little time to prepare for the sweeping changes.

The minister declared that a significant amount of business activity happening in rented buildings has been flying under the radar of the Zimbabwe Revenue Authority (ZIMRA).

He stated that existing laws have not been strong enough to catch property owners who collect rental income but fail to pay their fair share of tax.

From Initial Tax To A Full-Blown Crackdown

This is not the first time Minister Ncube has targeted the rental sector. During his 2025 National Budget Statement proposal last year, he introduced the Rental Income Tax. That initial measure specifically targeted “properties converted from residential to commercial use,” slapping them with a tax rate of 25%. It also required companies to disclose their landlords to the tax authority or lose the ability to claim rental expenses.

However, the minister now believes those initial measures were not enough. The new 2025 budget statement reveals the government’s view that “significant business activities… continue to escape the tax net.” This has prompted a much stricter, more invasive approach focused on constant reporting and severe penalties to force compliance.

A New Era Of Quarterly Submissions

The core of the new strategy involves a mandatory and continuous reporting requirement for any landlord collecting rental income from someone operating a business from their property.

Professor Ncube has proposed a major legislative shift that will require property owners and managers to act as active agents for the tax authority.

He outlined the new requirements in his address to Parliament, stating:

“I, therefore, propose that legislation be amended to require mandatory registration with ZIMRA, of all commercial and non-commercial properties where business activities are conducted and compel property owners or managers to submit quarterly tenant registers, occupancy lists and rental schedules to ZIMRA to facilitate audit and enforcement.”

This means that every three months, landlords must provide ZIMRA with a comprehensive list of who is renting their properties to run any kind of business and how much they are paying.

Hefty Penalties And Business Closures For Non-Compliance

The latest budget statement lays out severe consequences for landlords who fail to comply with the new regulations, going far beyond the initial rules. The measures are designed to leave no room for avoidance, with financial penalties that match the alleged tax evasion.

The Minister was unequivocal about the punishment for non-compliance, proposing:

“A property owner or manager who fails to register and account for Rental Income Tax, as well as withholding 10% of rental income payable by informal sector operators, be subject to a penalty equivalent to the Rental Income Tax and the Presumptive Tax payable thereof, including interest.”

In an even more drastic step, the minister has proposed that ZIMRA be granted the power to temporarily shut down businesses operating from non-compliant properties. He stated:

“Furthermore, I propose that ZIMRA be empowered to temporarily close the premises used for such businesses until completion of compliance processes.”

This could see tenants locked out of their shops or offices if their landlord has failed to meet the new tax obligations, a risk that was not part of the previous year’s tax introduction.

What This Means For Landlords And Tenants

This new framework imposes a significant administrative burden on landlords with tenants operating businesses from their properties. Property owners must now meticulously track these tenants and report their income to ZIMRA every quarter.

For people running businesses from rented premises, particularly those in the informal sector like market stall holders, there is a new layer of financial scrutiny. Landlords are now required to withhold 10% of the rental income from these informal traders as a presumptive tax, a cost that may potentially be passed down.

The success of this initiative hinges on ZIMRA’s ability to enforce these new rules, which will affect countless property owners across the country.