If you sell to companies, government bodies or anyone who runs a proper procurement process, sooner or later they will ask for your tax clearance certificate, the ITF263. Without a valid one you can lose contracts, and your clients may hold back part of what they owe you. Here is how it works and how to keep yours valid.

What is the ITF263?

The ITF263 is the tax clearance certificate issued by the Zimbabwe Revenue Authority (ZIMRA). ZIMRA issues it to taxpayers who are up to date with their obligations, which means their returns are filed and the tax due has been paid.

Why it matters: the 30% withholding

Under Section 80 of the Income Tax Act, when a supplier cannot produce a valid tax clearance, the client can withhold 30% of certain payments and pay it over to ZIMRA. For a small business, losing almost a third of an invoice can be the difference between a good month and a cash-flow crisis. A valid ITF263 avoids this.

Step 1: Make sure you are registered on TaRMS

ZIMRA now handles registration, returns and tax clearances on its TaRMS self-service portal (mytaxselfservice.zimra.co.zw). Your business needs a TaRMS account and a Taxpayer Identification Number (TIN). New businesses should register within 30 days of starting to trade.

Step 2: Register for every tax that applies to you

  • VAT: required when annual taxable turnover exceeds, or is likely to exceed, US$25,000 or the ZiG equivalent.
  • PAYE: employers must register within 14 days of becoming an employer.
  • Income tax: including Quarterly Payment Dates (QPDs) for provisional tax.

Step 3: Clear any outstanding returns and payments

The most common reason a tax clearance is refused is a missing return, often a nil VAT or PAYE return that nobody filed during a quiet month. Check your TaRMS account for any period marked as outstanding, file those returns and settle or arrange any balances due.

Step 4: Apply on TaRMS

Once you are compliant, apply for the tax clearance through the TaRMS portal. Keep a copy of the certificate and send it to clients who pay you regularly, so they don't withhold.

Step 5: Stay compliant so it stays valid

A tax clearance is only as good as your ongoing compliance. Put your VAT, PAYE and QPD dates in a calendar, file on time, and note when your certificate expires so you can renew before it does.

Need help?

CamTech's accountants in Harare check your TaRMS account, catch up missing returns, apply for your ITF263 and keep your filings on schedule, so your clearance never lapses.