Stasos News Update Q1
Stasos News Update is a quarterly information magazine meant to inform our customers about developments in legislation that affect their businesses. In this issue we cover the following items:
1. Company re-registration Requirements
2. Annual Returns
3. Annual General Meeting
4. Quarterly Payment Dates (QPD-1)
6. ITF 12C
7. ITF 263
10. Vendor Number
Company Re-Registration Requirements
The old companies Act (Chapter 24:03) was repealed and replaced by Companies and Other Business Entities Act (Chapter 24:31). The new Act was passed end of 2019 and became effective on 17 February 2020. The new Act (Section 303) requires that all companies that were registered under the old Act be re-registered by submitting, among other things, the Memorandum and Articles of Association. Companies have 12 months to comply. However, the regulations that operationalise the Act have repealed the 10th Schedule of the new Act. The 10th schedule was supposed to be the instrument to be used to effect the re-registration. So for now, the re-registration requirement is shelved until the registrar has issued new instructions in that regard. Take note that section 303 of the Act is still valid. My advice is that all our customers check with us on this matter as the year progresses.
A private company must no later than 21 days after the date of the anniversary of its incorporation, submit an annual return (Section 165 of the Act).
Annual General Meeting (AGM)
An AGM of a company must be held once in every period of 12 months (Section 167 of the Act). A return confirming that this meeting was held is lodged with the registrar of companies. Take note that section 82 of the Act also requires PBCs to lodge this return.
Quarterly Payment Dates
Returns for QPD 1 are due and payable on 25 March 2020. We need your actual trading results for January 2020 up to now and your projected sales, expenses and profits for the rest of the year in order for us to lodge this return.
Pay As You Earn (PAYE)
PAYE return is required monthly. Ensure that this is done so that you won’t encounter challenges with securing your next tax clearance certificate. Information required is the schedule showing earnings of each employee in the company. We then calculate the relevant taxes from there.
Ensure that the ITF 12C return for 2019 is done before the end of April 2020 to be safe. This return contains the actual results of trading for 2019.
ITF 263 Tax Clearance
Ensure that your business has a valid tax clearance. Most customers and suppliers prefer to trade with businesses with tax clearances.
The threshold required for your business to be issued with a VAT Certificate is ZWD1 million of sales per year. Thus, if your business averages $80 thousand a month you may need to start the process of registering for VAT. There are huge penalties for trading without a VAT Certificate if your sales are over the threshold over the past 12 months. There are advantages on your part to have a VAT certificate as you will claim all input tax charged to you by your suppliers. In addition, most businesses now require to do business with VAT registered suppliers. We are here to make your VAT registration flawless.
If you intend to do business with parastatals, local authorities and government ministries, government schools, you need to be registered with the Procurement Regulatory Authority of Zimbabwe (PRAZ). Examples are ZESA, City of Harare etc. Talk to us for this if you need this service.
If you are going to be paid by government for goods and services you supply, then your business must have a vendor number. Again, contact us if you require this service.
Contact us for Tax Services, Company Registration Services and Accounting Services, Business Plans and Computerised Accounting Systems.
Call +263 242-702785
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Stasos News Update Q1