Churches to pay tax on annointing Oil, branded church merchandise, literature, clothing, and even meals.
By Harry Taruva for Kwedu News
The Zimbabwe Revenue Authority (ZIMRA) has announced an upcoming Stakeholder Engagement forum specifically designed to address tax compliance among churches.
In a notice, Public Notice 98 of 2024 issued on the 11th of December 2024, ZIMRA says the meeting will address tax compliance issues across all applicable tax categories, promoting transparency.
“This forum is part of ZIMRA’s ongoing efforts to promote transparency and provide support for compliance.
“The date and venue of the engagement will be communicated in due course,” ZIMRA said in the notice.
ZIMRA reminded churches of essential tax guidelines, including exempted income streams such as donations, tithes, offerings, and contributions.
Additionally, non-trading receipts that do not arise from trade or investment activities are also exempted from income tax, the tax authority said.
Churches are required to pay income tax on trading activities, it said, including proceeds from the sale of church literature, branded merchandise and income from the sale of meals or clothing.
“Income derived from trading activities is subject to income tax. Examples of taxable income include but not limited to: Proceeds from the sale of church literature, books, or music, revenue from the sale of church-branded merchandise (e.g. apparel, anointing oils, artifacts, etc.), income from the sale of meals, clothing, or similar items,” ZIMRA said.
These sales may also attract Value Added Tax (VAT) depending on sales thresholds.
ZIMRA urged all taxpayers, including churches, to register for applicable taxes, submit outstanding returns and make timely payments to avoid penalties, interest, and litigation.
By staying compliant, ZIMRA said, churches contribute to building a stronger and more sustainable economy.
