ZIMRA Zimbabwe Revenue Authority : Employees Tax Pay As You Earn PAYE System

Organization : Zimbabwe Revenue Authority
Type of Facility : Employees Tax Pay As You Earn PAYE System
Country: Zimbabwe

Website : https://www.zimra.co.zw/index.php

Employees Tax Pay As You Earn PAYE System :

The Pay As You Earn (PAYE) system is a method of paying Income Tax on remuneration. The employer deducts tax from your salaries or pension earnings before paying you the net salary or pension.

Related : ZIMRA VAT Registration : www.statusin.org/7401.html

This article is intended to provide you with a simple and logical introduction to some basic principles of Income Tax as it applies to employees.

The Income Tax Act [Chapter 23:06] specifies what elements of an employee’s remuneration or earnings are subject to tax and at what rate of tax. It also deals with what income is exempt from tax and what deductions are allowed from these earnings, prior to tax being calculated.

Assume then for a moment that everything you earn – be it in cash, benefits, or an item of value you are given instead of cash – is subject to some form of tax. However, the determining of the value and its associated tax liability in respect of any of these forms of payments will differ in some cases.

The official tax table operates on an escalating scale basis, (i.e. the higher your earnings, the greater percentage tax you pay on each bracket of earnings). When your earnings reach a certain amount, the percentage stops increasing and a flat rate of tax becomes applicable for any earnings above this level – that is Marginal Tax Rate (MTR).

The tax-free threshold for individual taxpayers has been raised from US$250.00 to US$300.00 with effect from 1st January 2015.

The rate of tax for individual taxpayers who earns remuneration of above US$20 001.00 per month was increased to 50% with effect from 1 January 2014

The due date for the submission of PAYE returns and payment is the 10th of the following month.

PAYE is calculated as follows:
Determine gross income for the day/week/month/year.

Deduct exempt income, for instance bonus:
You get => Income

Deduct allowable deductions, e.g. pension:
You get => Taxable Income

Revenue Payments made easy :
** We are pleased to announce that, in our quest to improve service delivery and ultimately bring real convenience to you our valued clients, we have opened revenue accounts with various banks.

The following are the banks that are in partnership with us for the collection of revenue:
** BancABC – FBC
** Standard Chartered – Agribank
** MBCA – Premier / Ecobank
** Zb Bank – CBZ Stanbic

Banks have complemented our efforts by providing stationery that is ideal specifically for ZIMRA payments. Some have gone an extra mile and provided tax obligation charts.

The following information is required to allow ZIMRA to process your payment :
** Business Partner Number and Name,
** Tax obligation being settled,
** Station responsible for maintaining tax records or Port clearing your goods,
** Amount being paid and
** Date of payment

** Where you are not sure of the tax code to use, you can contact your bank’s branch manager or any ZIMRA office for assistance (please refer to the contacts section on this website).

** Please note that the above information is mandatory. Failure to fill it correctly on your payment form may result in payments not reaching ZIMRA or being credited to the wrong account, or being rejected completely by banks.

** The Zimbabwe Revenue Authority accepts payment in United States Dollars, Rand, Pound, Euro or Pula. You are therefore free to use the currency and bank of your choice.