ZIMRA meets with churches over tax compliance

Does your church have to pay taxes? Yes! Sometimes. Read this blog to find out when and why churches have to pay taxes. | ChurchTrac Blog

Oscar J. Jeke

Zim Now Reporter

The Zimbabwe Revenue Authority is set to meet with church leaders in a stakeholder engagement aimed at promoting tax compliance among religious organizations. This initiative underscores ZIMRA's commitment to transparency and support in helping churches navigate their tax obligations.

The dialogue arises amid ongoing discussions about the tax responsibilities of churches in Zimbabwe. While churches are generally exempt from income and capital gains taxes, they may still be liable for Value Added Tax (VAT) if their annual turnover exceeds US$40,000 or if they engage in taxable trading activities. These activities include income generated from the sale of church literature, merchandise, and meals, which attract a 15% VAT charge.

In a public notice, ZIMRA highlighted the importance of compliance and urged churches to register for relevant taxes and submit any outstanding returns. “Timely submission of returns and payments helps avoid penalties, interest, and litigation,” the authority stated.

To ease the compliance process, ZIMRA has established self-service centers across its regions, allowing organizations to meet their tax obligations more efficiently. The initiative aims to foster a culture of compliance and ensure a fair contribution to public revenue for national development.

“There are ZIMRA Self-Service Centres (Kiosks) throughout the regions for submitting returns. By voluntarily staying compliant, you contribute to a fair and sustainable tax system that supports national growth,” ZIMRA added.

The specific date and venue for the engagement have not yet been disclosed. However, ZIMRA emphasized the importance of churches understanding their tax responsibilities. “This engagement is part of a broader initiative to enhance public awareness of tax laws and curb tax evasion across all sectors, including religious organizations,” the agency noted.

This meeting highlights ZIMRA's proactive approach in fostering collaboration with religious institutions, ensuring their contributions to a robust and transparent tax system.