Churches and prophets in Zimbabwe are being reminded that they must pay taxes on income earned from business activities.
While donations and tithes remain exempt from tax, any revenue from selling goods or services will now be subject to taxation.
The Zimbabwe Revenue Authority (ZIMRA) has issued a clear notice informing churches about these tax obligations and the need for compliance.
ZIMRA emphasised that churches will not be taxed on donations, tithes, offerings, or any other financial contributions made by members or supporters. These sources of income remain exempt from tax, as stated in the notice.
“Incomes received or accrued from donations, tithes, offerings, or other contributions made by members or benefactors of the church or its institutions remain exempt from tax,” ZIMRA confirmed in a notice.
However, the revenue authority made it clear that income generated through trading activities, such as the sale of books, anointing oils, church-branded merchandise, or food items, must be declared and will be subject to income tax.
ZIMRA explained that “Income derived from trading activities is subject to income tax,” and gave examples such as proceeds from the sale of church literature, clothing, and meals. If these sales meet certain thresholds, they may also be subject to Value Added Tax (VAT).
To assist churches with understanding their tax obligations, ZIMRA has announced plans for a stakeholder meeting. This forum will offer churches an opportunity to ask questions and clarify any issues regarding tax compliance. The exact date and location of the meeting will be announced soon.
ZIMRA urged churches to register for taxes, file returns on time, and make payments to avoid penalties.
“Outstanding tax returns and payments must be addressed promptly to avoid penalties, interest, and litigation. Timely compliance is key to avoiding unnecessary penalties and ensuring smooth operations,” the notice said.
ZIMRA reminded churches that staying compliant with tax laws is essential for the country’s development and sustainability.
