The Zimbabwe Revenue Authority (ZIMRA) has clarified income that Churches are liable to pay tax.
Generally church income has been assumed to be exempt from taxation. However this position is not correct.
Churches which carry out trade activities are subject to income tax.
Revenue from the sale of church literature, food, books, or music, church-branded merchandise (e.g., apparel, anointing oils, artifacts etc) is subject to income tax.
Where the revenue surpass the Value Added Tax (VAT) threshold, the church is obliged to register and pay the VAT.
Exempt income for churches include donations, tiithes, offerings, and contributions made by members or benefactors of the church or its institutions.
ZIMRA has lined up a churches stakeholder engagement forum to address tax compliance across all applicable tax categories, as part of its commitment to transparency and compliance support.
The church play a pivotal role in the country. Paying taxes is a crucial step to improve revenue inflows and ensure government fulfills its mandate.
