What is withholding tax in Zimbabwe?

Withholding tax is a tax deducted at source by the payer before remitting payment to the payee. In Zimbabwe, it applies to fees for services (10%), tender payments (10%), dividends (10-15%), interest (15%), royalties (15%), and rental income (10%).

How do I get a withholding tax exemption certificate?

Apply for a withholding tax exemption certificate through TaRMS or your nearest ZIMRA office. You need a valid TIN, all tax returns must be up to date, and no outstanding tax debt. The certificate is valid for one year and must be renewed annually.

When is withholding tax due to ZIMRA?

Withholding tax must be remitted to ZIMRA by the 10th of the month following the month in which the payment was made. For example, tax withheld in January must be paid to ZIMRA by 10 February.

Is withholding tax a final tax?

For non-residents, withholding tax on dividends, interest, and royalties is generally a final tax. For residents, withholding tax on services and tenders is a credit that can be offset against the recipients annual income tax liability.

Withholding Tax Zimbabwe — Rates, Certificates & Filing

What is Withholding Tax?

Withholding tax is a method of tax collection where the payer deducts tax at source before making payment to the recipient. The payer then remits the withheld tax to ZIMRA. This system ensures that tax is collected at the point of transaction rather than relying on the recipient to declare and pay tax later.

In Zimbabwe, withholding tax applies to various types of payments including fees for services, tender payments, dividends, interest, royalties, and rental income. The rates differ depending on the type of payment and whether the recipient is a resident or non-resident.

Withholding tax is governed by the Income Tax Act (Chapter 23:06) and is administered by ZIMRA through the TaRMS portal.

Withholding Tax Rates

Payment Type	Resident Rate	Non-Resident Rate	Notes
Fees for services	10%	15%	Professional, technical, management services
Tender payments (government)	10%	10%	Government and parastatal contracts
Interest	15%	15%	Bank interest, loan interest
Dividends	10%	15%	May be reduced under tax treaties
Royalties	15%	15%	Intellectual property payments
Rental income (commercial)	10%	10%	On gross rental payments
Remittances by branches	N/A	15%	Branch profit remittances to head office
Non-resident entertainment fees	N/A	15%	Performances, appearances

Tax Treaties: Zimbabwe has double taxation agreements (DTAs) with several countries including South Africa, UK, and others. These treaties may reduce withholding tax rates on dividends, interest, and royalties. Check the applicable treaty rate before withholding.

How Withholding Tax Works

For the Payer (Who Deducts)

Determine if withholding applies — check if the payment type requires withholding tax
Check for exemption certificate — if the recipient has a valid withholding tax exemption certificate, do not withhold
Calculate the tax — apply the applicable rate to the gross payment amount
Deduct and pay the recipient — pay the net amount (gross minus withholding tax) to the recipient
Issue a withholding tax certificate — provide the recipient with a certificate showing the amount withheld
Remit to ZIMRA — pay the withheld tax to ZIMRA by the 10th of the following month
File the return — submit the withholding tax return (NR1/NR2 form) via TaRMS

For the Recipient (Whose Tax is Withheld)

Receive the net payment and withholding tax certificate from the payer
For residents: the withholding tax is a credit against your annual income tax. Include the income and claim the credit on your tax return
For non-residents: the withholding tax is generally a final tax. No further tax return is required in Zimbabwe
If you have an exemption certificate, present it to payers to avoid withholding

Withholding Tax Exemption Certificates

If you are a registered taxpayer with a good compliance record, you can apply for a withholding tax exemption certificate. This certificate allows payers to pay you the full amount without deducting withholding tax.

Requirements to Qualify

Valid TIN (Taxpayer Identification Number)
All tax returns must be filed and up to date
No outstanding tax debt with ZIMRA
Valid tax clearance certificate (ITF263)

How to Apply

Log into TaRMS
Navigate to “Applications” > “Withholding Tax Exemption”
Submit the application with your TIN and company details
ZIMRA reviews and issues the certificate (typically 5-10 working days)
The certificate is valid for one year and must be renewed annually

Without a Certificate: If you do not have an exemption certificate, every payer is legally required to withhold tax from your payment. You will recover the tax as a credit when you file your annual return, but this affects your cash flow.

Filing Withholding Tax Returns

If you are registered for withholding tax (as a payer), you must file monthly returns:

Return Forms

Form	Purpose	Due Date
NR1	Non-resident withholding tax return	10th of following month
NR2	Resident withholding tax return (services)	10th of following month
NR3	Rental income withholding tax return	10th of following month

How to File

Log into TaRMS
Navigate to “Returns” > “Withholding Tax”
Select the return type (NR1, NR2, or NR3)
Enter details of each payment and tax withheld
Submit the return and make payment

Penalties for late filing or non-remittance include 100% of the tax withheld plus interest at the prescribed rate. See our penalties guide for details.

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Withholding Tax Zimbabwe