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Presumptive Tax Zimbabwe

A simplified tax for informal traders, cross-border traders, and transport operators

What is Presumptive Tax?

Presumptive tax is a simplified taxation method introduced by ZIMRA to bring the informal sector into the tax net. Rather than requiring businesses to maintain detailed accounting records and calculate tax based on actual profits (which is impractical for many informal operators), presumptive tax charges a fixed amount or percentage based on the category of business activity.

Presumptive tax was introduced under Section 36A of the Income Tax Act and is designed to be simple, affordable, and easy to administer. For many operators, it represents a final tax — meaning no further income tax is payable on the same income.

Key Benefit: Presumptive tax is a final tax. Once paid, no further income tax is payable on the business income covered by the presumptive tax. This simplifies compliance significantly for informal operators.

Who Pays Presumptive Tax?

Presumptive tax applies to the following categories of operators:

  • Informal traders — market vendors, tuckshop operators, street vendors
  • Cross-border traders — individuals importing goods for resale
  • Commuter omnibus operators — minibus and bus operators in the public transport sector
  • Goods transport operators — haulage and delivery services
  • Driving schools
  • Hairdressers and barbers
  • Small-scale miners (artisanal miners)
  • Cottage industry operators — small-scale manufacturers and craftspeople
  • Restaurants and takeaway operators (informal)

Presumptive Tax Rates by Category

Cross-Border Traders

CategoryRateBasisWhen Payable
Goods imported for resale10%Value of imported goodsAt border post on each crossing

This tax is collected by ZIMRA at the point of entry when goods are imported. The 10% is calculated on the declared value of the goods being brought in for resale.

Transport Operators

Vehicle TypeQuarterly Tax (USD)Annual Tax (USD)
Commuter omnibus (up to 25 passengers)US$125US$500
Commuter omnibus (over 25 passengers)US$250US$1,000
Taxi cabUS$62.50US$250
Goods vehicle (up to 10 tonnes)US$250US$1,000
Goods vehicle (over 10 tonnes)US$500US$2,000

Other Categories

CategoryQuarterly Tax (USD)Annual Tax (USD)
Hairdressing salon / barber shopUS$25US$100
Driving school (per vehicle)US$125US$500
Cottage industry / informal manufacturerUS$25 – US$75US$100 – US$300
Restaurant / takeaway (informal)US$50US$200
Small-scale miningVariesBased on output
Important: These rates are indicative and may be updated by ZIMRA. Always confirm current rates with your nearest ZIMRA office or on the ZIMRA website before making payments.

How to Pay Presumptive Tax

Cross-Border Traders

Presumptive tax for cross-border traders is collected at the border post by ZIMRA officials when you import goods. You declare the value of your goods, and 10% is charged and collected before you enter Zimbabwe. A receipt is issued as proof of payment.

All Other Categories

  1. Register with ZIMRA — if you haven’t already, register for presumptive tax on TaRMS or at your nearest ZIMRA office
  2. Determine your category — identify which presumptive tax category applies to your business
  3. Pay quarterly — presumptive tax is due at the end of each quarter (March, June, September, December)
  4. Payment methods:
    • Direct payment at any ZIMRA office
    • Bank transfer to ZIMRA’s designated account
    • Mobile money (EcoCash, OneMoney) using ZIMRA’s biller codes
  5. Keep your receipts — always retain proof of payment for your records

Presumptive Tax vs Income Tax

If your business grows beyond the informal sector, you may need to transition from presumptive tax to the standard income tax system:

FeaturePresumptive TaxStandard Income Tax
Record keepingMinimalFull accounting records required
Tax calculationFixed amount or percentageBased on actual profits
Filing requirementsPayment only (no returns for most)Annual returns on TaRMS
Who it suitsInformal, small-scale operatorsRegistered businesses with records
Final tax?Yes (no further income tax due)Yes (tax on assessed income)

If your annual turnover exceeds certain thresholds or you register a formal company, you should transition to the standard income tax system. Contact us for guidance on when and how to make this transition.

Compliance Tips

  • Pay on time — late payment attracts penalties and interest. Set reminders for quarterly due dates
  • Keep records — even though presumptive tax doesn’t require detailed accounts, keep basic records of income and expenses
  • Keep receipts — retain all ZIMRA payment receipts. You may need them for tax clearance applications
  • Register — operating without paying presumptive tax can result in back-taxes and penalties if ZIMRA audits you
  • Know your category — paying under the wrong category can result in underpayment and penalties

Need Help with Presumptive Tax?

We can help you determine your category and set up compliant payments.

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Frequently Asked Questions

What is presumptive tax in Zimbabwe?
Presumptive tax is a simplified tax for informal and small-scale businesses. Instead of tax on actual profits, ZIMRA charges a fixed amount or percentage based on the business category. It applies to informal traders, cross-border traders, transport operators, hairdressers, and others.
Who pays presumptive tax?
Presumptive tax is paid by informal sector operators including market vendors, cross-border traders, commuter omnibus operators, goods transport operators, driving schools, hairdressers, small-scale miners, and cottage industry operators.
How much is presumptive tax for cross-border traders?
Cross-border traders pay 10% of the value of goods imported for resale. This is collected at the border post by ZIMRA. It is a final tax — no further income tax is payable on those trading profits.
How do I pay presumptive tax?
Pay at any ZIMRA office, through designated banks, or via mobile money. Cross-border trader tax is collected at the border during importation. Other categories pay quarterly.

Need Tax Help?

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Also see: Register a Company Zimbabwe Documents