Withholding Tax on Tenders in Zimbabwe: The 30% Rule Explained

Withholding tax on tenders is one of the most expensive surprises in Zimbabwean business: a supplier invoices US$10,000 and receives US$7,000, because they could not show a tax clearance certificate.

How it works

Compliance note — withholding tax on tenders
A person who pays for goods or services supplied under a contract or tender must withhold 30% of the amount payable where the supplier does not provide a valid tax clearance certificate (ITF263), subject to the minimum amount thresholds set by ZIMRA. The tax withheld must be remitted to ZIMRA with a return by the prescribed date, and the payer is liable for any amount it fails to withhold.
Source: ZIMRA; Income Tax Act [Chapter 23:06]. Confirm current thresholds and remittance dates with ZIMRA.

For suppliers

• Keep your ITF263 tax clearance valid and send it with every quotation and invoice.
• File every return on time — outstanding returns are the main reason clearance is refused.
• Keep your NSSA compliance current too; tenders usually ask for both.

For payers

• Check the supplier's tax clearance before every payment.
• Withhold 30% where there is no valid clearance.
• Record supplier details and amounts in the return schedule.
• Remit and file on time.

How YoBridge helps

YoBridge prepares the WHT on tenders return with its supplier schedule and attachments and submits it directly on TaRMS. The submitted return, attachments and acknowledgement are kept with the period — useful evidence when a supplier disputes a deduction.

See ZIMRA and TaRMS in YoBridge, or read about the NSSA compliance certificate tenders also require.

General guidance only, not tax advice.