Zimra instructs taxpayers to redirect minerals royalties

Leafias Mazviro

The Zimbabwe Revenue Authority (Zimra) has urged taxpayers who were remitting minerals royalties to the Reserve Bank of Zimbabwe to cease doing so and remit the mining royalties to the Commissioner General in compliance with Revenue Act, Mines and Mineral Act and the Financial Act.

This comes after Zimra advised all mineral exporters and Financial Institutions about the new payment arrangement for minerals royalties.

“The interim payment arrangements for royalties in kind are aimed at absorbing challenges being faced by taxpayers to account for the royalties in full and in kind,” Zimra said.

It further asserts that 40 percent of platinum, palladium and lithium will be payable in ZWL while 60 percent will be payable in foreign currency. 40 percent of gold, diamonds and precious stones will be payable in the local currency and 60 percent will be payable in foreign currency. On other minerals, 50 percent will be payable in both local and foreign currency.

“Any taxpayers that were remitting royalties to the Reserve Bank of Zimbabwe should cease doing so and remit the mining royalties to the commissioner General in compliance with the Revenue Authority Act [chp.23.11], Mines and Minerals Act [chp.21.05] and the financial Act [chp.23.04],” Zimra said.

“Any correspondence already issued regarding payment of mining royalties in kind that contradicts the provision of the Revenue Act, Mines Minerals Act an the Financial Act is not valid and not enforceable.

“When remitting the royalties, the Financial Institutions shall be required to prepare and submit a schedule of payments made to Zimra on or before the 10th day of the month following the month in which they were deducted.

“The mineral exporters shall be required to complete the return Rev 5Cs in USD and ZWL respectively and submit it to Zimra on or before the 10th day of the month following the month in which they were deducted,” Zimra said.

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