Tax to be paid according to trading currency

Businesses trading in multi-currencies urged to remit taxes in the same currency in which their goods and services are being sold in, said The Zimbabwe Revenue Authority.

“Zimbabwe Revenue Authority has noticed that there are businesses that are trading, withholding and collecting Value Added Tax, Pay As You Earn, Capital Gains Tax and other taxes in multi-currencies,” said the authority in a statement.

“Following this observation, ZIMRA has found it necessary to clarify that these businesses should remit taxes in the specific currencies in which they collect them without any conversion to RTGS, bond notes, local point of sale and mobile money.”

Pharmacies have been demanding payment in USD. Some, however, trade the multi-currencies they get on the parallel market and then settle their tax and other obligations using RTGS and other electronic systems, making profits in the process.

Government has urged ZIMRA to tighten its revenue collection mechanisms to curb loopholes that have been abused by some unscrupulous businesses.