current tax development issues … zimra presentation...online issuance of the capital gains tax...
TRANSCRIPT
CURRENT TAX DEVELOPMENT ISSUES
Presentation
To
Institute of Chartered Accountants of Zimbabwe
OBJECTIVES
Automation
E-services
Fiscalisation
VAT Withholding Tax
Introduction of liaison Officers.
Client Education
Tax Amnesty
PROCESSES ROLLED OUT1. Online Business Partner application and approval.
2. Online updating of client’s registration master data details using Rev 2
3. Online issuance of the ITF 263.
4. Online issuance of the capital gains tax certificate
5. Online submission of the following returns:PAYE VAT ITF 12C
Presumptive Taxes Capital Gains Tax
6.Display of returns submitted online
7.Display of payment transactions on account
8.Display of Account Balances at contract account level
PROCESSES BEING ATTENDED TO1. Online submission of Withholding Tax returns
2. Online application for Tax Deduction Directives
3. Online submission of VAT on Imported Services
4. Online submission of ITF 16
5. Online submission ITF 1 (Non FDS)
6. Online submission of the following as attachments:- ITF 12 B (QPD Returns)
Financial Statements
Mineral production returns – MM21
ITF 12C incorporating exempt bodies
7. Improved display of account statements on the portal, and the printing thereof
E-SERVICES CHALLENGES BEING ATTENDED TO
1. Slowness of the system on due dates and in January when clients are applying for ITF 263
2. Runtime error – the error prevents the client from logging onto the portal – “Sorry we are currently having some technical issues”
3. For all failed returns, the system should give feedback to the client on the reasons for failure
4. For all failed ITF 263, the system should give feedback to the client on the reasons for failure
IMPACT OF AUTOMATION TO OUR CLIENTS
1. Provides convenience to our valued clients
2. Reduces the costs associated with complying with tax regulations
3. Reduced paperwork, postage, printing costs;
4. Reduced time spent per query;
5. Increases accuracy of taxpayer data;
6. Greater accuracy in submissions and returns;
7. Improved service delivery to tax practitioners and taxpayers
8. Greater flexibility to interact with ZIMRA;
OUR REQUESTWe are appealing to clients to:
1. Update your master data details in order to enhance communication with ZIMRA and allow you to fully benefit from the upgraded system
a. Missing e-mail addresses and cell phone numbers
b. Missing banking details
c. Missing Industry & Sector details
d. Missing information on Relationship links; between Business Partner and Company Representative; Tax Advisor, Company Directors
2. Compete and submit the Rev 2 on the portal so that your registration master data details are updated
3. Ensure that all outstanding and current returns are submitted in time to avoid civil penalties
4. Current tax obligations should be paid in full and in time to avoid being garnished
8
Fiscalisation / Interface Legislation
1. Initially VAT registered operators in Category C were
required to be fiscalised (Section 3 (1) and (2) of SI
104 of 2010). Effective 1 April 2010.
2. Currently all VAT registered clients are required to be
fiscalised (SI 148 of 2016). Effective 1 January 2017
3. Fiscalised clients must be interfaced (connected /
linked) with the ZIMRA servers. (SI 153 of 2016 of
2016). Effective 1 January 2017
10
Penalty for failure to Fiscalize /
Interface
Failure to fiscalize or to interface attract
penalties as follows:
1. Penalty for non-fiscalisation: $25 per point of sale
per day for up to 181 days (SI 148 of 2016). Effective
1 January 2017.
2. For failure to interface: $25 per point of sale per
day for up to 181 days. SI 153 of 2016). Effective 31
December 2017
11
Approval of Additional Suppliers of
Fiscal Devices
Approved by the Minister of Finance effective May 2017
in terms of General Notice 307 of 2017
1. Axis Solutions
2. Cortech Solutions (Private) Limited
3. Fiscal Revenue Solutions (Aura Group) Pvt Ltd
4. Fiscal Support Services Pvt Ltd
5. Global Horizons Private Limited
6. JUST IT
7. Microwarehouse (Private) Limited
8. Rumikon Computers
9. Zimbabwe Revenue Authority
12
FISCAL PRINTERS SOLD BY ZIMRA
FISCAL PRINTER EPSON TM-T810F
KL
FISCAL PRINTER – ELTRADE PRP 250
$600 $500
13
Electronic Cash Registers sold
by ZIMRA
$350 $350
Electronic Cash Register - Eltrade B1 Electronic Cash Register – Eltrade A3
14
FEATURES OF FISCAL PRINTERS SOLD BY ZIMRA
1. Capable of printing with high speed hence ideal for busy retail
sectors e.g. supermarkets, retail shops, restaurant etc.
2. Have the ability to interface with any retail software
3. Each point of sale works with its own printer (One printer cannot
linked with several points of sale, only ESDs can do so)
4. Each printer itemizes receipts for goods purchased by clients
NB: A fiscal printer does not produce a proper tax invoice
A Printer is suitable for clients with accounting packages such as
quick books, pastel, pos, etc.
15
Features of Electronic Cash Registers sold by ZIMRA
1.Suitable for small to medium enterprises e.g. restaurants, cafes and bars, tuck-shops, boutiques.
2.They are stand-alone devices which do not require any accounting system.
NB:
All fiscal devices are capable of being linked to the ZIMRA servers, and can also generate several reports including Z-reports, Total VAT, interval report etc.
All devices purchased from ZIMRA are installed and interfaced by AURA Group (Installation fee $40 payable to AURA)
16
BANKING DETAILS FOR FISCAL DEVICES
SOLD BY ZIMRA
Payment into the “Commissioner General’s bank
account”:
1.NAME OF BANK ……………MBCA
2.BRANCH ……………………JASON MOYO BRANCH
3.ACCOUNT NUMBER………121037000134
NB: This account differs with the one where tax is paid.
17
ZIMRA EXPECTATIONS ON FISCALISATION
1. VAT registered clients advised to fiscalize all their points of sale to avoid penalties.
2. All fiscalised clients are advised to interface their devices. For this, they should arrange with their approved suppliers. This ensures that all sales transactions are transmitted to the ZIMRA Server. This way, you also avoid penalties
3. Notify the Authority in case of any malfunction of the fiscal devices and ensure that you obtain the necessary authorization from ZIMRA and record the error report number in your Error Report Register
4. Ensure that you notify the Authority whenever you replace old fiscal device with new one.
VAT WITHHOLDING TAX VAT Withholding Tax was introduced in
2017 to assist in minimizing loss of revenue to the fiscus.
In an effort to improve on the cash flows of VAT Withholding Tax registered operators a proposal was made to review the rate downwards from (2/3) to (1/3) . This is with effect from 1 January 2018
INTRODUCTION OF LIAISON OFFICERS
The introduction of liaison officers for all clients has helped in giving convenience to the client.
The one stop office concept help in that clients are served in the minimum possible time by a liaison officer who knows the affairs of the company.
CLIENT EDUCATION
Workshops are done especially targeting the small
to medium clients.
The main thrust is to educate clients on tax
matters.
Penalty and interest charges are minimised when
clients are informed of their tax obligations.
TAX AMNESTY
The Minister proposed a tax amnesty on interest
and penalties on outstanding taxes accrued prior
to 1 December 2017, for taxpayers that come
forward and settle their obligations within the
period 1 January 2018 to 30 June 2018.
You are advised to urge your clients to take
advantage of the tax amnesty.
TO OUR COMPLIANT CLIENTS
1. I would like to thank all the compliant clients for your efforts in meeting your tax obligations.
2. Thank you for supporting the government and assisting towards successful implementation of Government programs.
3. You are all encouraged to register with ZIMRA in order to enjoy the facilities that come with the e-services platform
OUR VALUED CLIENTS
REPORT,REJECT AND RESIST ANY CORRUPT PRACTISES WHEN DEALING WITH ZIMRA
No to Corruption
No to Corruption
CORRUPTION
Report corrupt activities anonymously by calling
Toll Free Econet Line: 0808 190
Toll Free Telecel Line: 0732 880 880
WhatsApp: 0772 135 690
E-Mail: [email protected]
THANK YOU
CommentsSuggestionsQuestions