Important Tax Update for Churches | ZIMRA Public Notice 98 of 2024

The Zimbabwe Revenue Authority (ZIMRA) has issued Public Notice 98 of 2024, which provides essential tax compliance guidelines specifically tailored for churches. This notice is designed to ensure that churches are fully aware of their tax obligations and are able to meet them effectively. One of the key highlights of this notice is the announcement of an upcoming stakeholder engagement session. ZIMRA is planning to organize a dedicated session to discuss tax compliance matters relevant to churches. While the exact date and venue are yet to be announced, this engagement promises to be an important opportunity for churches to gain clarity on their tax responsibilities. In terms of tax-exempt income, the notice clarifies that donations, tithes, offerings, and contributions made to churches are generally exempt from income tax. However, it is important to note that any income generated from trade or investments by the church is subject to taxation. This distinction is crucial for churches to understand in order to manage their finances appropriately. The notice also emphasizes the importance of tax compliance obligations. Churches are encouraged to register for all applicable taxes and to ensure that any outstanding returns are submitted on time. This is vital to avoid penalties and interest charges that can arise from late submissions. To assist churches in staying compliant, ZIMRA recommends filing tax returns electronically through the ZIMRA TaRMS Self-Service Portal. This portal provides a convenient and efficient way to submit completed tax returns. Additionally, making timely payments is essential, and ZIMRA Self Service Centres (Kiosks) are available to provide assistance with this process. Furthermore, the notice advises churches to seek professional advice. Consulting with a tax professional can help ensure full compliance with tax regulations and optimize the church's tax strategy. This professional guidance can be invaluable in navigating the complexities of tax laws and regulations. ZimBusiness Pro is committed to supporting churches in navigating the complex tax landscape. They offer consultations to help churches understand and fulfill their tax responsibilities, ensuring that they remain compliant with all relevant regulations. By staying informed and seeking professional advice, churches can effectively manage their tax obligations and focus on their core mission.