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The Zimbabwe Revenue Authority (ZIMRA) has introduced a new Presumptive Rental Income Tax to widen the national revenue base. The measure targets commercial property owners, requiring them to pay a 15 percent tax on their gross rental income.
Introduced under the Finance Act of 2025, the tax applies strictly to premises used for business, trade, or professional activities. The 15 percent levy is calculated on gross rental income. Landlords cannot claim any deductions or allowances before calculating the amount they owe.
Importantly, residential properties are exempt from this tax. However, for mixed-use buildings that feature both commercial and residential units, the commercial portion is fully subject to the new levy.
The regulation applies to all commercial property owners, including Zimbabwean citizens living in the diaspora. Non-resident landlords with commercial properties in Zimbabwe must register with ZIMRA and appoint a local resident representative to manage their tax obligations.
ZIMRA has outlined strict measures in its public notice to ensure full compliance:
• Statutory Agents: Estate agents and intermediaries who collect rent are now legally required to withhold the 15 percent tax. They must remit this to ZIMRA and retain proof before paying the remaining proceeds to the landlord.
• Tenant Liability: If a landlord fails to pay, the Commissioner General can direct tenants to pay their rent directly to the tax authority to clear the debt. Tenants who follow this directive are legally protected from eviction or retaliatory rent increases for three months.
• Financial Fines: Non-compliance attracts a severe penalty equal to 100 percent of the unpaid tax, effectively doubling the landlord’s total debt.
The new presumptive tax operates independently and does not replace existing obligations.
Commercial rentals currently subject to VAT will continue to attract the 15.5 percent rate in addition to the 15 percent presumptive tax.
Landlords must continue collecting the 10 percent informal trader’s tax from qualifying tenants.
According to the guidelines, landlords must submit their tax returns by the 5th day of the following month, with payments due by the 10th day. Property owners already registered under the self-assessment system before December 31, 2025, will continue using that framework but must submit a schedule of leased properties. Previously unregistered landlords must enrol in the new system immediately.
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