What is the penalty for late filing with ZIMRA?

ZIMRA can charge a penalty of up to 100% of the tax due for late filing of income tax returns. For VAT, the penalty is 25% of the VAT due. In addition, interest is charged at the prescribed rate for each day of delay.

What happens if I dont pay ZIMRA on time?

Late payment of tax attracts interest at the prescribed rate (currently linked to the bank policy rate) for each day the payment is overdue. ZIMRA may also issue a garnishee order to collect directly from your bank account.

Can ZIMRA penalties be waived?

ZIMRA may consider penalty remission in certain circumstances, such as genuine financial hardship, first-time offences, or where the taxpayer has voluntarily disclosed the non-compliance. Applications for remission must be made in writing to ZIMRA.

What is the penalty for not registering with ZIMRA?

Operating without ZIMRA registration can result in back-dated tax assessments covering all periods of non-compliance, plus penalties and interest on the assessed amounts. ZIMRA can also take legal action for tax evasion.

ZIMRA Penalties — Late Filing, Late Payment & Non-Compliance

Overview of ZIMRA Penalties

ZIMRA takes non-compliance seriously. Penalties in Zimbabwe’s tax system are among the most severe in the region, with late filing penalties reaching up to 100% of the tax due plus compound interest. Understanding these penalties is the first step towards avoiding them.

Penalties are imposed under the Income Tax Act (Chapter 23:06), the Value Added Tax Act (Chapter 23:12), and the Customs and Excise Act. They apply to individuals, companies, partnerships, and trusts alike.

Critical Warning: ZIMRA penalties are not discretionary — they are automatically applied when non-compliance is detected. Prevention through timely filing and payment is always better than seeking remission after the fact.

Late Filing Penalties

Return Type	Penalty	Additional
Individual Income Tax (ITF1)	Up to 100% of tax due	Plus interest on overdue tax
Corporate Income Tax (ITF14)	Up to 100% of tax due	Plus interest on overdue tax
PAYE Return (REV5)	100% of PAYE due	Plus interest
VAT Return (VAT7)	25% of VAT due	Plus interest
Withholding Tax Return	100% of tax withheld	Plus interest
Nil return (no tax due)	Fixed penalty	Even nil returns attract penalties if late

Example: If your company owes US$5,000 in income tax and files one month late, ZIMRA can charge up to US$5,000 in penalties (100% of tax), PLUS interest at the prescribed rate for every day of delay. The total cost of non-compliance can quickly exceed the original tax bill.

Late Payment Penalties

Even if you file your return on time, paying late attracts separate penalties:

Interest: Charged at the prescribed rate (linked to the bank policy rate) for each day the payment is overdue
QPD penalties: A penalty of 10% of the quarterly instalment is charged for late payment of provisional tax (Quarterly Payment Dates)
Garnishee orders: ZIMRA can issue orders to your bank to collect tax directly from your account
Asset seizure: In extreme cases, ZIMRA can seize and sell assets to recover unpaid tax

Non-Registration Penalties

Operating without registering with ZIMRA is a serious offence:

Back-dated assessments: ZIMRA can assess tax for all periods of non-compliance, potentially going back several years
Penalties on assessed amounts: The standard late filing and late payment penalties apply to all back-dated assessments
Criminal prosecution: Wilful failure to register can be treated as tax evasion, which carries criminal penalties including fines and imprisonment
VAT registration: If you should have registered for VAT but did not, ZIMRA can back-date your registration and demand VAT on all sales made during the period of non-compliance

Penalties by Tax Type

PAYE Penalties (Employers)

Employers who fail to deduct and remit PAYE face some of the harshest penalties:

100% penalty on unremitted PAYE amounts
The employer is personally liable for PAYE that should have been deducted
Directors can be held personally liable for company PAYE debts
Criminal charges for wilful failure to remit PAYE

See our Employer PAYE Guide for compliance details.

VAT Penalties

25% penalty on late-filed VAT returns
Interest on late VAT payments
Fraudulent VAT claims: up to 200% penalty plus criminal prosecution
Failure to issue tax invoices: fines per occurrence

Customs Duty Penalties

Underdeclared goods: duty on the difference plus penalty
Smuggling: seizure of goods plus criminal prosecution
False declarations: fines and imprisonment

How to Avoid ZIMRA Penalties

Register on time — register with ZIMRA before you start operating. See our registration guide
Know your deadlines — set calendar reminders for all filing and payment dates
File even if you cannot pay — filing a return on time avoids the filing penalty, even if you need more time to pay
File nil returns — if you have no activity in a period, file a nil return to avoid penalties
Keep records — maintain accurate financial records to support your returns
Use a compliance service — outsource your filing to avoid missed deadlines

Avoid Penalties — Let Us Handle Your Compliance

We track all deadlines and file on time, every time. Monthly packages from US$30.

WhatsApp Us Register a Company

Penalty Remission

ZIMRA may consider reducing or waiving penalties in certain limited circumstances:

Genuine financial hardship — documented inability to pay
First-time offence — previously compliant taxpayers may receive leniency
Voluntary disclosure — coming forward before ZIMRA detects the non-compliance
ZIMRA system errors — where TaRMS downtime prevented timely filing (with evidence)

Applications for penalty remission must be made in writing to the Commissioner General of ZIMRA, setting out the reasons and providing supporting documentation. There is no guarantee of approval.

ZIMRA Penalties