Online Reporter
Sikhulekelani Moyo, [email protected]
ZIMBABWE Revenue Authority (Zimra) has issued a public notice introducing a significant new tax for property owners: the Presumptive Rental Income Tax, effective from 1 January 2026.
The notice states that the tax is payable by the proprietor, the landlord, owner, lessee or sub-lessee of land or premises who receives rental directly or indirectly from a tenant liable for presumptive tax must withhold the tax and remit to the Commissioner General.
Zimra said Zimbabwean citizens local and in the diaspora who own land or properties that are leased to any persons or entities that carry on trade on such premises must register, with non-resident registrable proprietors required to appoint a resident representative in Zimbabwe.
“Zimra hereby advises property owners, tenants, agents and the general public on the introduction and application of Presumptive Rental Income Tax, with effect from 1 January 2026, in terms of the Finance Act, 2025 (Act No. 7 of 2025),” reads the notice.
“The tax is charged at a rate of fifteen per centum (15%) of the gross rental received and it is treated as “final tax”. No deductions or allowances are permitted in determining the tax. The tax cannot be claimed as a credit, refund, or set-off against any other Income Tax.”
“Any person who leases out land or building(s) to another person carrying on trade, business or an occupation on such premises is required to register. Any lessee or sub-lessee who receives rent must also register.”
According to Zimra, a tenant liable for presumptive tax is a tenant who pays rent to the “registrable proprietor” in order to conduct business, trade, or an occupation on such land or premises.
The registrable proprietor is the landlord (owner of premises), lessee, or sub-lessee to whom rent is paid.
“The premises owned by an operator may be occupied for trade and other purposes. For example, the same building may have offices and units used for residential purposes.
“The part occupied for residential premises is not liable to presumptive tax. The proprietor will not account for presumptive tax on rental from tenants on residential premises.”
Zimra said any person who leases out land or building(s) to another person carrying on trade, business or an occupation on such premises is required to register, saying that any lessee or sub-lessee who receives rent must also register.
“The registrable proprietors must: register with Zimra by 1 January 2026 if already receiving rent; apply for registration within 30 days of becoming a registrable proprietor; submit a schedule of properties being leased out and details of the tenants and notify Zimra of any change of address or cessation,” said the revenue authority.
“The return must be submitted by the 5th day of the following month, and tax must be paid by the 10th day of the month following the month in which the rental was received.
“Where rental is received by an estate agent, any intermediary, or trustee, or sub-lessee, such person is deemed to be a statutory agent and is required to: pay the tax where the proprietor has not done so; remit the tax to Zimra; and issue a withholding certificate in the prescribed form.”
According to the notice, presumptive rental income tax does not replace VAT; where rental is subject to VAT, VAT continues to apply at 15,5 percent, calculated on rentals.
Zimra said presumptive rental income tax operates independently and does not affect PAYE, non-residents’ tax, or any other withholding tax obligations.
“The landlords must continue collecting from eligible tenants the informal trader’s tax (10 percent of rent). This is a tax on the income of the tenant and not a tax on the landlord,” said Zimra.
“Failure to remit presumptive rental income tax may result in recovery of the outstanding tax and a penalty equal to 100 percent of the unpaid tax.
“The Commissioner may appoint a tenant of a non-compliant landlord as an agent for purposes of payment of the Presumptive rental Income Tax. The tenant shall be instructed to pay any outstanding taxes from future rentals.”
