ZIMRA To Enforce Tax Clearance Certificate Requirement For Public Transport Operators
The Zimbabwe Revenue Authority (ZIMRA) has announced that effective January 1, 2025, insurance companies must verify a valid tax clearance certificate before issuing vehicle insurance to public transport operators. This requirement is part of the Finance Act No. 2 of 2024.
The regulation applies to vehicles registered under the Road Motor Transportation Act for both goods and passenger transport.
ZIMRA urged insurance companies to comply with this regulation and to assist operators in obtaining the necessary tax clearance certificates.
A letter dated 06 December 2024, addressed to the Commissioner of the Insurance and Pensions Commission, by ZIMRA’s Acting Commissioner, Domestic Taxes, M. Chinanayi, reads:
RE: PRODUCTION OF VALID TAX CLEARANCE CERTIFICATES BEFORE INSURANCE OF VEHICLES UPON LICENCING – FINANCE ACT No. 2 OF 2024
Reference is made to the Finance Act. No. 2 of 2024 which was gazetted on 25 October 2024 and which amended the Income Tax Act [Chapter 23:06] by introducing new requirements that insurance companies need to comply with.
Please be advised that in terms of section 80A of the Income Tax Act, insurance companies are now required to ensure that effective 1 January 2025, no public transport operators are issued with vehicle insurance unless they produce a valid tax clearance certificate. The section reads:
“(5) Notwithstanding anything contained in the Road Motor Transportation Act [Chapter 13:15] and Insurance Act, the following persons who are certified, registered or licensed to operate the business of the omnibus or taxicab for the carriage of goods or passengers for hire or reward, in whose name the goods vehicle, omnibus or taxicab is or is required to be registered in terms of the Road Motor Transportation Act [Chapter 13:15] and Insurance Act shall not be certified, registered or licensed by ZINARA nor be eligible for vehicle insurance unless (at the time the certification, registration or licensing of the person concerned is effected or renewed) there is produced to the certifying, registering or licensing authority under the Act concerned a tax clearance certificate valid no earlier than thirty days before its production.”
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