The Sunday Mail
Desire Ncube and Veronica Gwaze
CHURCH representatives have applauded the Zimbabwe Revenue Authority for clarifying tax issues relating to religious-based organisations.
This follows a slew of misconceptions after the 2016 Zimra announcement that churches were not 100 percent tax-exempt.
Some people have claimed that Zimra wants to tax tithes, offerings and donations, and yet the authority is targeting business ventures run by religious-based organisations.
For six months, Zimra’s client care unit (domestic taxing) has been engaging churches to clarify matters, and last week a team explained to the Zimbabwe Christian Ministers Association that they had to remit pay as you earn tax for employees’ salaries, wages and allowances.
Zimra team leader Mr Marvelous Chigwanda said churches conducting businesses were treated like any other entity and had to pay the applicable taxes.
“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.
“Capital gains tax is payable on capital gains realised from the sale of specified assets (immovable property, shares and other securities). It should be stated that a church is exempt from capital gains tax in respect of any sale of specified assets.
“Any business transaction carried on by any pastor and founder of any church is liable to tax,” Mr Chigwanda said in his presentation.
On rebates, he said goods imported for religious purposes remained duty-free but religious organisations had to follow due procees to get the necessary approvals.
Apostle Joshua Luveve of Covenant House Miracle Centre International Ministries said dialogue was important to end understandings.
“My question was on rebate or exemption of religious organisations on certain goods. I am happy that Zimra officials explained very well on that. Our ministry is growing and we would need to import instruments and its pleasing to note that we are exempted from paying tax,” he said.
Apostle Nesbert Mapfumo of Triumph Ministries said churches needed awareness on the operations of entities like Zimra to avoid confusion, going on to “encourage churches to have good administration structures for issues of accountability”.
Apostle Tsitsi Homani of Golden Glory Ministries added: “My perception has changed and I have to do my part of spreading the truth about this issue because I was one of the people who was denouncing taxation. There is nothing political here these are policy issues, we just have to understand and co-operate.”
