ZIMRA has issued a significant update regarding the year-end procedures for employers. With the successful rollout of the Tax and Revenue Management System (TaRMS), the traditional ITF16 submission has undergone a major change.
Your Year-End To-Do List
While the ITF16 is gone, the responsibility to reconcile remains. Employers must follow these critical steps during the December 2025 payroll cycle:
- Review All 2025 Calculations: Perform a full audit of every employee's PAYE for the entire calendar year.
- Final Deduction System (FDS): Ensure all adjustments are made in the final December payroll.
- Settle Shortfalls: If your reconciliation reveals tax due, ensure it is paid promptly to avoid penalties.
- Manage Refunds: Any over-collected tax should be refunded to employees through the usual payroll process.
Beyond PAYE: A General Compliance Health Check
The year-end is also the perfect time to review your overall tax status across all applicable tax heads (Income Tax, VAT, CGT, etc.). ZIMRA recommends verifying:
- Registrations: Are you correctly registered for every tax type your business operates?
- Return Integrity: Have all returns been submitted on time and supported by source documentation?
- Payment Allocation: Confirm that payments in TaRMS are correctly allocated to the right tax periods.
- FDMS Compliance: For VAT operators, double-check your onboarding to the Fiscalisation Data Management System and the functionality of your fiscal devices.
"Accuracy in your December adjustments prevents future audits and unnecessary penalties. Using the TaRMS electronic platform makes this reconciliation smoother than ever."
If you identify any discrepancies or errors, we urge you to regularize your position immediately by submitting amended returns or outstanding payments.