ITF263 Tax clearance certificate in Zimbabwe

What is a tax clearance or ITF263?
A tax clearance certificate is a document that is issued by the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA) to a person liable to pay tax under any of the Acts administered by ZIMRA. The certificate is issued upon request to a person whose tax affairs are up-to-date or has made satisfactory tax compliance arrangements with ZIMRA.
Benefits of a tax clearance?
Tax clearance does not necessarily offer a direct benefit. It is usually needed as a requirement for doing business with other companies. There are certain situations in which your business may need tax clearance and some benefits a tax clearance certificate may give your business:
• To participate in government tenders (almost all governement tenders require a valid tax clearance as a condition).
• To participate in public tenders (this is mostly because tax registered companies prefer to do business with other tax registered companies).
• To prove that you are tax compliant (a tax clearance certificate is proof that you are paying taxes or are putting your tax issues in order).
• To avoid the 10% withholding fee (tax registered companies are required by law to withhold 10% from any company that does not have a valid tax clearance. This is levied only on order amounts above $250 during any tax year).
Who qualifies for a tax clearance?
Tax clearance is available for anyone who is liable pay any form of tax to ZIMRA. This includes both individuals and companies.
• Individuals or companies that have paid or submitted tax returns.
• Newly registered companies that want to trade with tax clearance requiring businesses but have not yet paid tax to ZIMRA.
Requirements for tax clearance in Zimbabwe
The requirements for obtaining a tax clearance in Zimbabwe are as follows:
• Certified copies of company papers.
• Certified copies of directors’ IDs.
• Proof of residence for every director (attach affidavit if proof is not in director’s name).
• Directors’ email addresses and phone numbers.
• Current bank statement of the company.
• Current personal bank statement of one of the directors.
• A budget of $50 – 150 if done through this website.
Procedure for getting a tax clearance certificate
The procedure for obtaining tax clearance in Zimbabwe is as follows:
Option 1 (easy method): Get a tax consultant to do it for you.
Option 2 (a bit more complicated): Register with ZIMRA, submit all required documentation and apply for the tax clearance certificate.