April 30 deadline for 2025 income tax returns

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Simbarashe Hamudi

THE Zimbabwe Revenue Au­thority (Zimra) has issued a firm reminder to all taxpayers that Income Tax Returns for the year ended December 31, 2025 are due on or before April 30, 2026. In Public Notice No. 20 of 2026, issued on March 30, 2026, the tax authority outlined the categories of taxpayers required to file, clarified new obligations affecting certain profession­als, and warned that late submission will attract penalties, interest, and pos­sible prosecution.

The notice places particular empha­sis on taxpayers earning income from trade and investments. In terms of sec­tion 37A of the Income Tax Act, all such taxpayers fall under the self-assessment system. This means they are responsi­ble for calculating their own tax liabil­ity and submitting the Income Tax Re­turn (ITF 12C), together with relevant financial statements, by the April 30 deadline. Even where no income was received or accrued during the 2025 tax year, taxpayers are still required to sub­mit nil returns.

A significant development high­lighted in the notice is the shift from presumptive tax to self-assessment for several professional groups with effect from January 1, 2025. Architects reg­istered under the Architects Act, engi­neers and technicians registered under the Engineering Council Act, legal practitioners registered under the Legal Practitioners Act, health practitioners registered under the Health Professions Act, and real estate agents registered under the Estate Agents Act are all now required to submit ITF 12C returns for the 2025 year of assessment. This marks a major compliance change for professionals who may previously have relied on simplified presumptive tax ar­rangements.

Taxpayers with approved account­ing years other than December 31 have also been reminded of their obligations. Such taxpayers must submit their in­come tax returns within four months af­ter the end of their approved accounting year. In cases where arrangements have been made with the relevant regional manager to submit returns on specific agreed dates, taxpayers are required to adhere strictly to those agreed timelines. The authority’s message is clear: com­pliance dates must be respected.

Currency reporting remains an im­portant feature of the 2025 tax year. Zimra has clarified that taxpayers whose estimated total income is more than 50 percent in foreign currency must apply the 50-50 basis when ac­counting for tax, separating foreign and local currency components. Those whose estimated total income is 50 per­cent or less in foreign currency must account for tax proportionately in the currency of trade. For conversion pur­poses, taxpayers have the option to use either the spot rate or the annual aver­age exchange rate. Given Zimbabwe’s multi-currency environment, accurate application of these rules will be critical to avoiding disputes or reassessments.

Dormant companies have not been spared the compliance drive. Compa­nies that did not carry on any trade or business for the entire 2025 year of as­sessment are required to submit nil re­turns by April 30, 2026, provided they are registered for tax. Zimra has further reminded dormant companies that are not yet registered to regularise their reg­istration status without delay. Failure to register does not exempt an entity from tax obligations and may expose it to ad­ministrative sanctions.

Capital Gains Tax (CGT) obliga­tions also form part of the compliance requirements. Taxpayers who received or accrued capital gains from the dis­posal of specified assets during 2025 must submit their returns by the same April 30 deadline. This applies to dis­posals of immovable property and other specified assets that fall within the am­bit of the Capital Gains Tax Act. In an environment where property and asset transfers are common, taxpayers are urged to ensure that all gains have been properly declared.

Employees are also addressed in the notice, particularly those who fall out­side the Final Deduction System (FDS). Individuals who received employment income other than directors’ fees must submit an Income Tax Return (ITF 1) by April 30, 2026 if, during 2025, they worked for less than 12 months, changed employers, received income from more than one employer, or re­ceived pension income in addition to employment income. However, em­ployees who were subject to Pay As You Earn (PAYE) throughout the year and remained with the same employer for the full period are not required to submit returns, provided they did not receive other taxable income. This clar­ification aims to reduce unnecessary fil­ings while ensuring compliance where multiple income streams exist.

Transfer pricing compliance has also been brought into sharp focus. All per­sons earning income from trade and in­vestments involving domestic or inter­national related party transactions must submit their ITF 12C returns support­ed by a Transfer Pricing Return (ITF 12C2) by April 30, 2026. With increas­ing scrutiny on related-party transac­tions, especially those crossing borders, documentation and proper disclosure are essential to demonstrate that trans­actions were conducted at arm’s length.

ZIMRA has further reminded tax­payers with outstanding returns or payments from previous years to sub­mit them without further delay. The authority has reiterated that all returns must be filed electronically through the Self-Service Portal (SSP) avail­able at mytaxselfservice.zimra.co.zw. For taxpayers without internet access, Self-Service Centres (kiosks) are avail­able across the country, providing free access to the portal. This digital-first ap­proach reflects ongoing efforts to mod­ernise tax administration and streamline compliance processes.

The consequences of non-compli­ance are clearly stated. Late submission of returns or late payment of tax will attract penalties, interest, and potential prosecution. The authority has also em­phasised that taxpayers who have not submitted returns for previous years must bring their affairs up to date. Ig­noring past obligations will not shield taxpayers from enforcement measures, particularly in an era of enhanced data matching and audit capabilities.

With just weeks remaining before the April 30, 2026 deadline, taxpayers across all sectors, businesses, profes­sionals, property owners, and certain employees are encouraged to review their financial records, ensure proper documentation, and submit returns well ahead of the closing date. Seeking as­sistance from tax consultants or accoun­tants may help avoid errors, particularly in areas such as foreign currency report­ing and transfer pricing.

Hamudi is Tax Partner at Baker Tilly Central Africa, based in Harare, Zim­babwe. He can be contacted at +263 775 399 536 or simbarashe.hamudi@bakertilly.co.zw