By Takudzwa Changadeya
Harare – The Zimbabwe Revenue Authority (ZIMRA) has issued a public notice reminding churches that certain income streams, including proceeds from the sale of anointing oil and other merchandise, are taxable.
The notice, which also announced an upcoming stakeholder engagement for churches, outlined tax compliance guidelines aimed at fostering transparency and promoting adherence to the country’s tax laws.
While churches are exempt from paying income tax on donations, tithes, offerings, and other non-trading contributions, ZIMRA stated that income derived from trading activities is subject to taxation.
“Revenue from the sale of church-branded merchandise such as anointing oils, artifacts, apparel, and other similar items is considered taxable income,” the notice read.
“Additionally, such sales may attract Value Added Tax (VAT) depending on the sales thresholds.”
Other taxable activities include income from the sale of church literature, music, meals, and clothing.
ZIMRA urged churches to ensure compliance by registering for applicable taxes, submitting outstanding tax returns, and paying any due taxes promptly.
“Timely submission of returns and payments helps you avoid penalties, interest, and litigation,” the statement noted.
The authority also reminded taxpayers to complete their returns via the TaRMS Self-Service Portal and highlighted the availability of self-service kiosks across its regions to assist with submissions.
To provide further clarity and support, ZIMRA announced plans to hold a stakeholder engagement session dedicated to tax compliance for churches. The date and venue for the session will be announced soon.
“By voluntarily staying compliant, you contribute to a fair and sustainable tax system that supports national development,” the notice stated.
