Payment of Capital Gains Tax in Zimbabwe

Executive summary — 16 Mar 2026

This chapter (corresponding to Lesson 13: Payment of Capital Gains Tax (CGT)) explains when CGT becomes legally due, how it is paid in practice under TaRMS and the ZIMRA Single Bank Account model, and why payment is structurally tied to property registration through CGT clearance certification. The tax system’s design deliberately shifts payment “up-front” by (i) a 30‑day statutory payment rule, and (ii) even earlier payment triggers where capital gains withholding tax (CGWT) applies (typically within 3 working days after funds are paid to/for the seller).

A key advanced practitioner point is that not all “payment clocks” start at transfer. For two common commercial patterns—suspensive-condition sales and credit/instalment sales where ownership passes—the CGT Act deems the full consideration to have accrued on the contract date, which can accelerate the 30‑day CGT payment deadline.

Operationally, ZIMRA has implemented tax payment through TaRMS using a Single Account architecture: the taxpayer funds a ZIMRA Single Bank Account at a chosen participating bank; the bank validates deposits primarily by TIN and taxpayer name, and funds remain “parked” until the relevant return is submitted to allocate the payment to a specific tax obligation. This creates a compliance risk where cash has been deposited but the tax remains unpaid “in the ledger sense” because the return was not submitted.

For immovable property, Deeds Registry registration is legally blocked unless either (a) CGWT has been withheld under Part IIIA, or (b) a ZIMRA certificate is produced stating that CGT payable has been paid. Separately, ZIMRA has moved to electronic CGT clearance certificates issued through TaRMS with QR/authentication features (manual certificates generally discontinued, but later reopened in limited “legacy SAP” situations).

Late payment exposes taxpayers to interest under the CGT Act (rate fixed by statutory instrument) and exposes depositaries/agents in the withholding chain to personal liability plus a 15% penalty for CGWT failures, subject to waiver where no intent to evade is shown.

Learning objectives

By the end of this chapter an advanced student or practitioner should be able to:

1. Identify the correct statutory due date for CGT payment across standard transfers, suspensive condition contracts, credit/instalment sales, and withholding-driven transactions.
2. Distinguish CGT payment from CGWT remittance, including agent/depositary chain rules and the “earlier of” payment rule that can override the usual 30‑day timetable.
3. Apply Finance Act rate rules to compute payable amounts for realistic payment planning (including foreign-currency payment rules).
4. Execute TaRMS-era payment mechanics: funding the Single Bank Account, submitting the correct return (notably CGT1), and reconciling payments to assessments/clearances.
5. Manage property conveyancing workflow: demonstrating payment through clearance certificates, validating certificates, and anticipating ZIMRA interviews/document requests.
6. Advise on enforcement exposure, interest, penalties, and litigation posture, using Zimbabwean authority where relevant (e.g., Sabeta).

Statutory framework and institutional roles

Core charging, payment, and collection architecture

The Capital Gains Tax Act [Chapter 23:01] contains the central payment rule in section 26 (“Day and place for payment of tax”). It establishes (i) when tax becomes due (the 30‑day framework and withholding override) and (ii) where/how it is payable (ZIMRA offices, notified agents, and the preserved right to pay by post).

For transactions subject to capital gains withholding tax (CGWT), payment timing is effectively accelerated by Part IIIA (sections 22B–22J). The Act imposes rapid remittance obligations on depositaries/agents/payees (generally no later than the 3rd working day), provides for clearance certificate alternatives, and creates penalty exposure for failures.

The Finance Act [Chapter 23:04] determines the rates for both CGT (section 38) and CGWT (section 39), and specifies foreign-currency payment principles for capital gains (section 39A).

ZIMRA’s administrative authority, certification, and service obligations

ZIMRA administers tax through both the CGT Act and the Revenue Authority Act [Chapter 23:11]. Two practical administrative anchors for payment and clearance practice are:

• Tax clearance certificates: section 34C empowers the Commissioner-General to issue tax clearance certificates reflecting returns filed, taxes paid, or satisfactory arrangements, and allows conditioning issuance on payment of arrears. While CGT clearance is specifically grounded in the CGT Act/CGWT framework, section 34C evidences the broader statutory policy that “clearance” is a legitimate compliance gate.
• Duty to assess/collect without unjustified delay: section 34E criminalizes (among other misconduct) an officer delaying without justification to discharge duties to assess or collect revenues owed. This statutory posture aligns with the refusal‑to‑process risk seen in CGT certificate disputes.

Due dates and timing rules for CGT payment

The statutory 30‑day rule and its three gateways

Section 26(1) of the CGT Act provides that tax becomes due and payable no later than 30 days from the relevant statutory trigger, but the trigger differs by transaction type:

• Gateway A (suspensive/credit-sale accrual): 30 days from the date the specified asset “accrues” under section 18(1) or 19(1).
• Gateway B (general transfer rule): 30 days from the date when title to the specified asset is formally transferred (for “any case other than” the section 18/19 class).
• Gateway C (withholding override): no later than the last date specified in sections 22C, 22D, and 22E where that date is earlier than the above. In practice, this can replace a 30‑day planning horizon with a 3‑working‑day control.

How “accrual” accelerates payment in suspensive-condition and credit sale contracts

For suspensive-condition sale structures, section 18(1) deems the whole amount payable under the agreement to have accrued on the date the agreement is entered into, even though ownership passes later when a threshold portion or the full price is received.

For credit/instalment sales where ownership passes on delivery, section 19(1) similarly deems the whole amount to have accrued on the contract date where ownership passes on delivery but the price is payable in instalments.

Both regimes allow an allowance for amounts not receivable at year-end (section 18 uses a formula-based allowance; section 19 provides a Commissioner discretion to deduct a further reasonable allowance). Those allowances are then brought back into capital amount in the subsequent year.
Payment relevance: because section 26 ties the 30‑day rule to accrual under sections 18/19, practitioners must evaluate whether CGT becomes payable 30 days from contract, not 30 days from transfer.

“Where to pay” as a legal question (not just a process)

Section 26 also defines the lawful place/method of payment:

• Payment is to ZIMRA offices responsible for assessing/collecting taxes under the CGT Act, or via a ZIMRA agent notified by the Commissioner.
• Taxpayers retain a right to pay through the post (statutory preservation clause).

Interest for late payment: statutory trigger and rate-setting instrument

If tax is not paid by the statutory dates, interest becomes payable on unpaid amounts for the period specified, at a rate fixed by the Minister by statutory instrument; the Commissioner may extend time for payment without charging interest in “special circumstances.”

Note for practitioners: The 2025 statutory instrument summarized in Veritas’ Gazette extract describes interest as Bank Policy Rate + 5% (local currency) and 10% (foreign currency) for any month or part thereof that tax remains unpaid/overpaid for purposes including sections 22I and 26.

Decision tree: determining the controlling due date

flowchart TD
A[CGT payable event identified] --> B{Is the deal a s18 suspensive-condition sale<br/>or s19 credit sale where ownership passes?}
B -- Yes --> C[Accrual deemed on contract date<br/>s18(1) / s19(1)]
C --> D[CGT due ≤ 30 days after accrual<br/>s26(1)(a)]
B -- No --> E{Is CGWT/withholding the controlling mechanism?}
E -- Yes --> F[Due date is the earlier withholding deadline<br/>s26(1)(c) + s22C/s22D/s22E]
F --> G[Typically remit ≤ 3rd working day after payment/receipt]
E -- No --> H[General rule: CGT due ≤ 30 days after formal transfer of title<br/>s26(1)(b)]

Payment methods and TaRMS-era procedures

TaRMS Single Account model: what changed operationally

ZIMRA Public Notices and Taxman’s Corner guidance describe a Single Account approach for Domestic Taxes in TaRMS:

• Payment of taxes is now done through a ZIMRA Single Bank Account; taxpayers must complete registration and select a bank linked to the ZIMRA Single Bank Account facility (payments cannot be made through non-linked banks for Domestic Taxes).
• Payments into the Single Bank Account can be made by cash deposits or internal bank transfers, validated by banks primarily using TIN (and in later guidance also taxpayer name).
• A critical accounting mechanic: funds paid into the Single Account require a tax return for the relevant obligation to be recognized and posted to the taxpayer’s TaRMS account; without a corresponding return, funds remain in the Single Account.

Practical implications for CGT payment

CGT is typically operationalized through CGT1 filings plus payment proof, particularly in property transfers (where clearance must be produced). The CGT1 form itself collects seller identifiers, property/transaction data, whether the sale is suspensive, and asks for exemptions/rollover categories.

On the ZIMRA CGT guidance page, ZIMRA states that a CGT clearance certificate is issued once amounts due have been paid and the transaction finalized; ZIMRA may require separate interviews of buyer and seller (or authorized reps) as part of processing.

Payment channels: statutory vs operational

The CGT Act’s formal payment rule is broad (ZIMRA offices or notified agents; payment through post). TaRMS operationalizes “agent” behaviour through banks integrated into the Single Account model.

Comparison: payment channels and controls

Remittance timing and the “return must follow money” principle in TaRMS

A core compliance point from Public Notice 87 of 2023 is that taxpayers do not necessarily need to specify the tax obligation at the bank deposit stage; rather, the funds are validated and credited to the Single Account, and then a return submission is required for the system to recognize/allocate payment.

Practical risk: in property conveyancing, if funds are deposited (to enable clearance) but the CGT1/return is incomplete, defective, or not submitted, TaRMS may not allocate payment to the CGT obligation, delaying clearance issuance.

Property registration, conveyancing workflow, and CGT clearance certificates

The legal gate: no registration without proof CGT paid (where not withheld)

Section 30A of the CGT Act creates a direct legal interface between tax payment and asset registration:

• Where CGT is not withheld under Part IIIA, no registration of acquisition of a specified asset may be executed/attested/registered by the Registrar of Deeds (or the person registering company share transfers) unless a certificate issued by ZIMRA is submitted stating that CGT payable has been paid.
• The rule also blocks registration of certain cessions/condominium membership interests without a ZIMRA certificate confirming CGT payment.

Interpretive point: section 30A is not “just administrative”—it is a statutory prohibition directed at the registrar/transfer functionaries, making CGT payment a precondition to property marketability in many cases.

Documentary requirements: what ZIMRA expects in clearance processing

ZIMRA’s public guidance lists document packages depending on whether disposal is under cession or via deeds. Examples include:

• For cessions: cession letter/council authority, cession agreement, conveyancer undertaking (where purchase money held in trust), IDs, proof of payment, REV1, CGT1, and sometimes valuation report.
• For deeds transfers: CGT1, REV1, agreement of sale, deed/share certificate, proof of payment, IDs, utility bills for rollover/exemption claims, and power of attorney where represented.

ZIMRA also states buyer and seller (or their representatives) may be required for separate interviews in assessment/transaction finalization.

Electronic clearance certificates: authenticity, validation, and security

Public Notice 56 of 2024 confirms that:

• From 1 Aug 2024, TaRMS-generated electronic CGT clearance certificates with Authentication Code and QR Code can be validated on TaRMS; certificates issued since 1 Nov 2023 fall under this validation model.
• Manual CGT clearance certificate issuance was discontinued (as a general rule) and taxpayers access CGT clearance certificates through TaRMS SSP.
• The notice specifies certificate fields (seller/buyer names, seller TIN, IDs, title deed number, property description, sale value, CGT paid, currency, reason, authentication code, QR code, issue date) and sets out authentication-code or QR validation steps via the SSP interface.

Manual certificates reopened only for narrow legacy cases

Public Notice 47 of 2025 partially adjusts the “manual discontinued” stance: manual certification may be issued in exceptional cases involving legacy SAP assessments/payments and certain historic property submissions (including some pre‑2009 sale scenarios) where proof of payment is provided.

Workflow: clearance certificate in property conveyancing

flowchart TD
A[Sale agreement concluded] --> B[Compile CGT file: CGT1 + REV1 + agreement + title/cession docs + IDs + proof]
B --> C[Submit information/attachments to ZIMRA / via TaRMS process]
C --> D[ZIMRA interviews/verification/valuation checks where required]
D --> E[Compute CGT/CGWT and confirm amount payable]
E --> F[Pay via TaRMS Single Account / ZIMRA channels]
F --> G[ZIMRA finalizes transaction and issues e-CGT clearance certificate in TaRMS SSP]
G --> H[Validate certificate authenticity (auth code / QR on SSP)]
H --> I[Conveyancer lodges transfer documents + CGT clearance certificate with Deeds Registry]

Worked numerical examples focused on payment timing and mechanics

Note on scope: These examples are constructed to teach payment timing, withholding interactions, and TaRMS procedures. Rate references are tied to Finance Act provisions; where the Finance Act text contains editorial ambiguity (e.g., property withholding wording), the example states assumptions explicitly.

Example 1 — Standard deeds transfer: 30 days from formal transfer of title

Facts (assumptions):
A seller disposes of an immovable property (not a section 18/19 contract structure). Title transfers on 1 June 2026. The property was acquired after 22 Feb 2019, so CGT is computed at $0.20 per $1 of capital gain (in the relevant currency case).

Assume:

• Selling price (gross capital amount) = USD 180,000
• Allowable cost base + improvements + selling costs = USD 120,000
• Capital gain = USD 60,000
• CGT = 20% × 60,000 = USD 12,000

Payment due date:
This is not a section 18/19 accrual case, so section 26(1)(b) applies: CGT due no later than 30 days from formal transfer, i.e., by 1 July 2026 (counting calendar days).

Payment mechanics (TaRMS‑era):

1. Prepare the CGT file and complete CGT1, which captures transaction data and includes a warning of offence for false information.
2. Fund ZIMRA through the Single Bank Account at the selected bank (cash deposit or transfer). Ensure TIN and taxpayer name capture are correct for validation.
3. Submit the return/CGT1 so that payment in the Single Account can be recognized/allocated.
4. Obtain the CGT clearance certificate (TaRMS SSP) and lodge it for Deeds registration where required.

Example 2 — Suspensive-condition sale: 30 days from contract date (not transfer date)

Facts:
Contract signed 15 March 2026. Ownership passes only upon receipt of the final instalment (typical suspensive condition). Under section 18(1), the whole amount is deemed to have accrued on 15 March 2026.

Assume capital gain computation results in CGT payable of USD 9,000 (details omitted here to focus on timing).

Payment due date:
Section 26(1)(a) applies: CGT due no later than 30 days from the accrual date under section 18(1) → by 14 April 2026, even if transfer occurs later.

Practitioner warning:
CGT1 explicitly asks whether “the sale is made under suspensive sale conditions,” indicating ZIMRA expects taxpayers to flag this timing-sensitive category.

If unpaid by due date:
Interest applies under section 26(3) from the relevant notified date until paid in full, at the statutory-instrument rate.

Example 3 — Credit/instalment sale where ownership passes: accrued on contract date, allowance mechanics

Facts:
A specified asset is delivered and ownership passes immediately, but price is payable in instalments (credit sale). Under section 19(1), the whole amount accrues on the contract date.

Assume:

• Contract date: 1 February 2026
• Price: USD 100,000, payable USD 30,000 now + USD 70,000 over the next year
• Capital gain (after allowable deductions) = USD 40,000
• CGT rate applicable = 20% of capital gain = USD 8,000

Payment due date:
CGT due by 3 March 2026 (30 days from accrual on 1 Feb 2026).

Allowance (conceptual):
Section 19 allows the Commissioner to deduct a further allowance for amounts deemed accrued but not receivable at year-end; that allowance is then included as capital amount in the following year. This mechanism addresses annual timing of capital amount, but does not negate the statutory rule that accrual is at contract date for section 26 purposes.

Example 4 — Withholding overrides the 30‑day rule: depositary remits in 3 working days

Facts:
A conveyancer holds purchase funds as a depositary under Part IIIA (typical in property conveyancing). On Monday 6 April 2026, the depositary pays USD 50,000 to the seller (or for seller’s credit). Under section 22C(1), the depositary must withhold CGWT and pay it to the Commissioner no later than the 3rd working day after payment.

Assume CGWT amount required (by Finance Act rate) is USD 6,000 (rate mechanics depend on the applicable category in section 39).

Deadline computation:
If payment was made Monday:

• 1st working day after payment: Tuesday 7 April
• 2nd: Wednesday 8 April
• 3rd: Thursday 9 April

So remittance is due by Thursday 9 April 2026.

Effect on CGT due date:
Even if the seller might otherwise look to section 26’s 30‑day rule, section 26(1)(c) explicitly makes CGT due no later than the earlier withholding date where applicable.

Documentation:
Where withholding is done, the depositary must provide a certificate showing depositary and payee details, property particulars, and amount withheld.

Example 5 — Late payment interest: illustrating the mechanics and assumptions

Facts:
CGT of USD 12,000 (Example 1) was due on 1 July 2026 but paid on 20 August 2026.

Legal trigger:
Section 26(3) imposes interest on unpaid tax for the period it remains unpaid, at a rate fixed by statutory instrument.

Rate articulation (source summary):
The 2025 notice summarized in Veritas indicates an interest rate benchmarked to Bank Policy Rate + 5% (local currency) and 10% (foreign currency) for any month or part thereof tax remains unpaid/overpaid for purposes including sections 22I and 26.

Illustration assumption (for teaching only):
Assume the applicable annualized rate for foreign-currency unpaid tax is (BPR + 10%) = 45% per annum, and ZIMRA applies a monthly pro‑ration of annual rate/12 to months/parts of months outstanding.

• Unpaid period crosses parts of July and August → treated as 2 months or parts.
• Monthly rate ≈ 45% / 12 = 3.75%
• Interest ≈ 12,000 × 3.75% × 2 = USD 900

Compliance note: This numerical result depends on how the SI operationalizes “for any month or part thereof” in rate calculation. Practitioners should compute using the operative statutory instrument wording and ZIMRA practice for the period.

Compliance checklist, common pitfalls, and enforcement posture

Payment and clearance checklist (seller/conveyancer/depositary)

Confirm the transaction type and map it to the correct payment rule:

1. Is it section 18 or 19? (Suspensive conditions / credit sale instalments where ownership passes) → treat accrual as at contract date for CGT payment planning.
2. Is CGWT required and are you a depositary/agent? If yes, remittance is typically ≤ 3rd working day (and overrides the 30‑day rule).
3. Prepare CGT documentation: complete CGT1 with accurate seller and transaction details (including suspensive indicator).
4. Assemble ZIMRA clearance file (as applicable): CGT1 + REV1 + agreement + title documents + IDs + proof of payment; include conveyancer undertaking where relevant.
5. TaRMS payment discipline: deposit/transfer into Single Bank Account and ensure the return is submitted so funds are allocated (avoid “unallocated deposit” situations).
6. Obtain and validate clearance certificate: confirm QR/authentication and verify via SSP method where needed; for legacy SAP cases, check whether manual certification window applies and provide proof of payment.
7. Lodge with Deeds Registry: ensure the transfer package includes the certificate required by section 30A where CGT was not withheld.

Common pitfalls and audit triggers

ZIMRA’s own CGT guidance identifies valuation and disclosure integrity risks. Common pitfalls include:

• Under-declaring sale value, including debt‑settlement/private treaty transfers used to “free” funds or reduce tax, or related-party pricing distortions—explicitly flagged as problematic in ZIMRA guidance.
• Wrong timing assumption: treating CGT as due 30 days after transfer when section 18/19 applies (contract‑date accrual).
• TaRMS reconciliation failure: paying into the Single Account but failing to submit the return, leaving funds unallocated and clearance delayed.
• TIN/name capture errors at the bank, which can interfere with validation and crediting of payments.
• Withholding chain negligence: depositary/agent fails to withhold/remit within 3 working days (personal liability + 15% penalty exposure, subject to waiver).

Enforcement levers: interest, penalties, and collection powers

Key enforcement features include:

• Interest on late CGT payment (section 26(3)), with discretion to extend without interest in special circumstances.
• CGWT penalty regime: depositary/agent personally liable for unpaid CGWT plus 15% additional amount, with possible waiver where no intent to evade is found.
• Collection power alignment: section 26(4) imports the Taxes Act collection powers for collecting tax and interest (functional equivalence to income tax collection mechanisms).
• Service and assessment discipline: the Sabeta decision (below) demonstrates judicial willingness to compel assessment/receipt of CGT to unblock transfer where refusal is unjustified.

Case law spotlight: Sabeta and the refusal-to-process risk

In Mariane Sabeta v Commissioner-General (ZIMRA), the High Court dealt with a situation where ZIMRA refused to assess/accept CGT for a current transfer due to alleged illegality in an earlier transfer. The Court rejected the idea that prior non-compliance should block the current transaction where the applicant was a bona fide purchaser and a court order authorized payment by the Deputy Sheriff. The Court ordered ZIMRA to assess CGT within 10 days and accept payment from the Deputy Sheriff and issue the relevant certificate upon payment.

The CGT Act text itself flags Sabeta as authority for the proposition that ZIMRA is not permitted to refuse to assess and issue a CGT certificate once tax is paid (editorial note embedded in the consolidated Act text).