ZIMRA Backs Down: Taxman Proposes 6-Month Clearance After Business Backlash
Topic: Tax Policy | Status: Policy Shift | Date: 22 Dec 2025
The Zimbabwe Revenue Authority (ZIMRA) has signalled a major U-turn on its controversial plan to force businesses to renew tax clearance certificates every single month. Following fierce backlash from the business community, led by the Confederation of Zimbabwe Industries (CZI), the taxman is now proposing a more flexible, tiered approach.
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| Relief for Business: ZIMRA Commissioner General Regina Chinamasa's team responds to industry concerns. |
The initial policy, announced in Public Notice 69 of 2025, threatened to cripple operations by invalidating certificates monthly. In a dramatic shift described as a "phased, transitional framework," ZIMRA is now offering validity periods of up to six months for large clients, though strict rules remain for those filing NIL returns.
Why Business Revolted
The original plan was deemed an administrative nightmare.
ZIMRA originally announced that ITF263 tax clearance certificates for 2026 would "only be valid for a month for all taxpayers." They warned that any lapse in compliance would result in immediate suspension.
The Confederation of Zimbabwe Industries (CZI) led the charge, arguing that monthly renewals would heap massive administrative costs on companies already operating in a fragile economic environment. They warned it would disrupt tenders, banking facilities, and statutory approvals.
The Proposed Framework
In a letter dated December 19, 2025, ZIMRA Commissioner for Domestic Taxes Misheck Govha proposed a "phased, transitional framework" based on the size and scale of the taxpayer:
- Large Clients: Certificates valid for 6 Months.
- Medium & Small Clients: Certificates valid for 3 Months.
Govha wrote: "In light of the concerns raised, ZIMRA remains committed to ensuring that compliance measures are practical, efficient, and aligned with broader economic objectives."
The Rule That Didn't Change
While validity periods have been extended, ZIMRA remains hardline on dormant or non-trading entities. The position on NIL returns remains unchanged.
Taxpayers submitting NIL returns are deemed "not to be trading" and must seek specific authorisation from ZIMRA before obtaining a tax clearance certificate.
Industry Verdict
Businesses have welcomed ZIMRA's willingness to engage and retreat from the rigid one-month rule. The 6-month validity for large clients is seen as a significant victory for stability.
However, industry insiders argue the fight is not over. Many believe that even a 3-month renewal cycle for SMEs is too frequent and creates unnecessary red tape for tender participants.
ZIMRA has pledged further consultations to balance "voluntary compliance" with "effective revenue mobilisation."
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