Mthuli Ncube Calls For Mandatory ZIMRA Registration, Corporate And Personal Income Taxes For Informal Trader Businesses

Mthuli Ncube Calls For Mandatory ZIMRA Registration, Corporate And Personal Income Taxes For Informal Trader Businesses
In the Finance budget released today, Finance Minister Mthuli Ncube has called for mandatory ZIMRA registration to charge corporate and personal income taxes on informal trader businesses.

If you own a clothing boutique, grocery store, or even a car parts dealership, you must prepare for new tax compliance measures.

The government has introduced stricter regulations requiring small businesses in the informal sector to register for corporate and income tax. In the past, informal businesses were only obligated to pay presumptive taxes, but this is set to change.

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Informal Businesses affected by the new tax regulations

Mthuli Ncube calls for taxes for informal trader businesses
Mthuli Ncube calls for taxes for informal trader businesses-Image Source@X

Industries affected by these regulations include:

  • Clothing retailers and boutiques
  • Automobile and spare parts dealers
  • Grocery store owners
  • Hardware shops
  • Hotels, lodges, and other accommodation providers

These businesses must now register with the Zimbabwe Revenue Authority (ZIMRA), operate through Point-of-Sale (POS) systems, and keep accurate transaction records.

What Are the Consequences of Non-Compliance?

Any business that fails to comply with registration and getting POS machines will be compelled to pay quarterly tax as follows:

  • Spare parts dealers   US$9 000
  • Car dealers   US15 000
  • Grocery and kitchenware merchandisers  US$9 000
  • Fabric merchandiser  US$12 000
  • Clothing Merchandisers/ Botiques  $12 000
  • Hardware Operators  US$15 000
  • Lodges  US$5 000

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Failure to comply with these new requirements will not be taken lightly. ZIMRA is being granted the authority to temporarily shut down businesses that fail to meet these tax obligations. If your business is not registered for tax purposes or does not maintain proper transaction records, you risk having your operations suspended.

I, further, propose to empower ZIMRA to temporarily close businesses which fail to adhere to the above requirements, including failure to register for tax purposes, until such registration and payment of applicable taxes are completed

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The post Mthuli Ncube Calls For Mandatory ZIMRA Registration, Corporate And Personal Income Taxes For Informal Trader Businesses appeared first on iHarare News.