Zimra to start taxing churches

Speaking to Sunday Mail, Zimbabwe Revenue Authority (Zimra) head of corporate communications Mr Canisio Mudzimu said that churches carrying out business will be taxed. He also said that they will also be required to remit “Pay As You Earn” for their employees’ salaries, wages and allowances.

He however said tithes, offerings and donations will be excluded from taxation. Said Mudzimu:

Churches carrying out business are treated like any other entity and are liable to income tax which is payable on business profits, i.e. income derived from, or deemed to be from a source within Zimbabwe. However, the receipts and accruals of church or religious organisations are exempted from income tax only to the extent of donations, tithes, offerings, other contributions by its members, and any other income that is not from trade or investments. Every person who becomes an employer is required by law to register for PAYE within 14 days of becoming an employer. Once a church becomes an employer and it pays any type of remuneration, for instance, a salary, wage, allowance — among others — to its employees, the church will be required to deduct the correct employees’ tax or PAYE every month, in accordance with the tax tables, and remit to Zimra by the 10th day of the following month.

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