20/10/2023
Introducing the Single Account Concept in tax payments under the new ZIMRA Tax & Revenue Management System (TaRMS)
What is TaRMS?
Tax and Revenue Management System (TaRMS) is a new tax administration system that ZIMRA is introducing to replace the current tax payment and administration system being used for Domestic Taxes or inland revenues. The new TaRMS will result in new business partner accounts for all Domestic Taxes paying clients as well as those paying for Excise licensing fees.
Why TaRMS?
• The system will replace the current system (SAP TRM) in Domestic Taxes, which was causing a series of system challenges thereby affecting service to taxpayers.
• New system will improve operational efficiency in the collection of taxes and service delivery to users.
• TaRMS has enabled many processes to be automated, thereby removing human interface and bureaucracy in the tax administration system.
• It will reduce the need by taxpayers to frequently visit the ZIMRA offices for services
• In terms of payments, the TaRMS system will eliminate a host of challenges that were encountered during payments processing. The tax payer only needs to worry about transferring funds to the ZIMRA single account at his/her chosen bank and submitting the returns and the system will handle payments allocations and assessments including refund processes.
The following processes will be effectively managed by TaRMS for the convenience of clients or tax payers;
• Taxpayer Registration
• Tax Returns Processing
• Tax Payments
• Refunds
• Revenue Accounting
• Taxpayer Accounting
• Debt Management
• Tax Agents Management
• Audit and Risk Management
• Case Management
• Reporting
How are taxpayers identified in TaRMS?
Taxpayers in TaRMS are identified by a TIN, which refers to Taxpayer Identification Number. This will replace the current business partner numbers that taxpayers are currently using.
For existing Taxpayers
TINs will be automatically assigned to existing taxpayers by the TaRMS and sent to the registered email addresses of the taxpayers.
For new Taxpayers
New taxpayers will be allocated TIN upon successful registration in TaRMS. The Registration process is an online process which tax payers will be able perform from their devices and gadgets that include laptops, desktops, tablets, cellphones etc. The following are key requirements for registration;
National ID number for individuals or Company Registration numbers for corporates and organizations, National ID number and email address of the Public Officer and the taxpayer email address.
How does one open a bank account for use in TaRMS?
Opening of new bank accounts by a taxpayer no longer requires obtaining a Bank Advice Note from ZIMRA for registered taxpayers. The TIN number allocated upon application in the ZIMRA Self-Service Portal (SSP) is sufficient for the taxpayer to open a bank account. However, a tax payer does not necessarily need to open a new bank account for the purpose of TaRMS, as existing bank accounts can be utilized.
How does the Single account Concept work in TaRMS?
ZIMRA will open bank accounts in all Commercial banks in the country except for those that fail to meet the minimum configuration requirements. These bank accounts will be named ZIMRA Commissioner General Single Account. In each bank, there will be two ZIMRA Single Bank Accounts, one for ZWL and another for USD. Any other currencies on the multicurrency basket will be converted by the bank to USD at point of payment. From the list of banks with ZIMRA Single Accounts that ZIMRA will avail, the Taxpayer is expected to choose ONE BANK for Tax payment purposes. (i.e. for both ZWL and USD payments). Taxpayers cannot have a USD single account in one bank and a ZWL Single Account in another bank, they both have to be within the same bank for ease of administration. The TaRMS system will automatically keep a balance of the Tax payer’s funds in the ZIMRA Single Account in that bank. This record is kept in TaRMS in what is called the Taxpayer’s Singe Account. The taxpayer can deposit or transfer money for tax payments only to the ZIMRA SINGE Account within their chosen and registered bank.
The taxpayer’s bank account in the chosen bank can also be used by the taxpayer for making any other transactions that are not ZIMRA related; it is not restricted to the ZIMRA payments.
A taxpayer cannot use a bank that is not linked ZIMRA Single Bank Account for tax payments purposes. For example, a Taxpayer who is linked to ZIMRA Single Bank Account at Bank A cannot make a deposit at any of the ZIMRA Single Bank Accounts held at any other bank other than Bank A that the client has elected to use for tax payment purposes. There is no cross transfer of funds from one Bank to another under the single account concept.
However, the taxpayer is allowed to change from one bank to another bank. The taxpayer can submit an application form to change from one bank to another and approval is granted for as long as there are no unutilized funds in ZIMRA’s Single Account for that tax payer in the currently selected bank (i.e. a nil balance in the taxpayer’s Single Account in TaRMS)
A taxpayer has an opportunity to transfer money back from the ZIMRA Single Bank Account to own bank account. For this transaction, the taxpayer is required to fill an online application form for the transfer. The application is automatically approved upon validation of set parameters.
How is the Taxpayer going to make payments in ZIMRA Single Account?
The Taxpayer can make a payment into ZIMRA Single Bank Account in three ways:
Cash deposits and internal transfers – Taxpayers are also able to make cash deposit or do internal transfer directly through their banks; the bank will validate the payment before posting the transaction. The validation parameter is the TIN hence it is paramount that the TIN is captured correctly all the time. NB. The banks will provide new and appropriate forms for TaRMS purposes and there will be mandatory fields on the forms which include taxpayer’s name and taxpayer identification number (TIN)
When making payment, a taxpayer does not need to indicate the tax obligation being settled. Only the TIN and taxpayer name are required, and validation of the taxpayer TIN will be done by the bank through its integration with TaRMS upon which the transaction is then credited to the ZIMRA Single Bank Account.
Deposits of other currencies other than USD and ZWL?
Taxpayers who have currencies other than USD and ZWL for example ZAR; EUR, GBP, will be required to convert them at their bank into USD or ZWL at the prevailing rate on the date of payment. Tax liabilities and payments will be just in two currencies that is, ZWL and USD.
Are taxpayers able to make Customs payments using single bank accounts?
The ZIMRA Single Bank Accounts are specific for Domestic Taxes payments only. Customs & Excise duty payments will for now remain on the current platform and our current ZIMRA bank accounts will remain available for this purpose.
https://www.zimra.co.zw/news/22-taxmans-corner/2267-introducing-the-single-account-concept-in-tax-payments-under-the-new-zimra-tax-revenue-management-system-tarms
