Zimbabwe’s 15% Rental Income Tax Explained: The Ultimate Guide To Compliance, Deadlines And ZIMRA Penalties

Deadlines And Penalties For Zimbabwe’s Presumptive Rental Income Tax

A new and comprehensive tax regulation has been formally enacted, fundamentally altering the financial responsibilities for Zimbabwe’s commercial property sector. The Zimbabwe Revenue Authority (ZIMRA) issued Public Notice 08 of 2026 on the 5th of February 2026, providing exhaustive details on the Presumptive Rental Income Tax. This definitive guide breaks down the official document, explaining exactly who is affected, how the tax is calculated, the critical registration and payment timelines, and the severe penalties for non-compliance that now involve tenants directly.

The tax is effective for all relevant rental income received from the 1st of January 2026. It is a compulsory levy targeting income derived from premises used for business, trade, or occupation. The notice provides a broad definition of who bears the liability, stating:

“The tax is payable by the proprietor, landlord, owner, lessee, or sub-lessee of land or premises who receives rental (directly or indirectly) from a tenant liable for presumptive tax. This person must withhold the tax and remit it to the Commissioner General.”

The notice further clarifies that this includes “Zimbabwean citizens (local and in the diaspora)” and requires non-resident owners to appoint a local representative.

A Final Tax With A Fixed Rate And No Exceptions

The most significant characteristic of this tax is its nature as a “final tax” applied to gross income. The ZIMRA notice leaves no room for interpretation regarding the rate and its application:

“The tax is charged at a rate of fifteen per cent (15%) of the gross rental received and is treated as a ‘final tax.’ No deductions or allowances are permitted. The tax cannot be claimed as a credit, refund, or set-off against any other Income Tax.”

This means a landlord receiving US$5,000 (approx. ZAR 90,000) per month from a business tenant must remit US$750 (approx. ZAR 13,500) directly to ZIMRA. Expenses such as property maintenance, municipal rates, agent commissions, or financing costs cannot be deducted from the rental amount before calculating the 15% tax liability.

Registration is a mandatory first step. The notice stipulates that any person leasing property for commercial use must register. The requirements are explicit:

“Register with ZIMRA by 1 January 2026 if already receiving rent; Apply for registration within thirty (30) days of becoming a registrable proprietor; Submit a schedule of properties being leased out and details of the tenants; Notify ZIMRA of any change of address or cessation.”

It is crucial to note the tax’s limited scope: it applies only to the portion of a property used for trade. The notice specifies, “The part occupied for residential purposes is not liable to presumptive tax.”

The Non-Negotiable Monthly Compliance Cycle

The administrative burden of this tax is ongoing, with strict, non-negotiable deadlines each month. Failure to meet these dates constitutes an immediate compliance failure. The ZIMRA public notice clearly outlines the timeline:

“The return must be submitted by the 5th day of the following month, and tax must be paid by the 10th day of the month following the month in which rental was received.”

Therefore, for rent received in March 2026, the landlord must file a return by the 5th of April and ensure the tax payment reaches ZIMRA by the 10th of April.

The responsibility also extends to intermediaries. The notice designates estate agents, property managers, or trustees who collect rent as statutory agents, imposing direct duties on them:

“Where rental is received by an estate agent, any intermediary, trustee, or sub-lessee, such person is deemed to be a statutory agent and is required to: Pay the tax if the proprietor has not done so; Remit the tax to ZIMRA; Issue a withholding certificate in the prescribed form.”

Severe Financial Penalties And The Direct Role Of Tenants

The consequences for non-compliance are designed to be punitive and inescapable. ZIMRA outlines a two-pronged penalty system involving heavy fines and a novel enforcement mechanism through tenants. The notice warns:

“Failure to remit presumptive rental income tax may result in recovery of the outstanding tax and a penalty equal to 100% of the unpaid tax.”

Thus, an undeclared tax liability of US$1,000 (approx. ZAR 18,000) could escalate to a total debt of US$2,000 (approx. ZAR 36,000), inclusive of the penalty.

Perhaps the most powerful enforcement tool is the ability to bypass the non-compliant landlord entirely. The notice grants ZIMRA the authority to appoint the business tenant as a collection agent:

“Where the registrable proprietor or agent fails to remit the tax, the Commissioner may appoint the tenant liable for presumptive tax to pay the tax directly to ZIMRA.”

To protect tenants who comply with such an order, the law provides specific safeguards. The notice assures that “the law protects the tenant from eviction or rental escalation for a period of three (3) months solely due to compliance with the tax obligation.”

The notice also addresses transitional arrangements. Landlords who were already registered and compliant under the self-assessment system before 31 December 2025 continue under that regime. For all others, the rule is clear:

“Any operators not registered with ZIMRA before 31 December 2025 must register and pay presumptive rental income tax with effect from 1 January 2026.”

ZIMRA encourages all landlords, agents, and tenants to seek direct guidance from their offices to navigate these new requirements.