ZIMRA Follows ZIDA Automation Intergrating Systems For Foreign lnvestments

The Zimbabwe Agricultural Show 114th edition happening now in the capital has seen the marriage between Zimbabwe Investment and Development Agency (ZIDA) and the Zimbabwe Revenue Authority (ZIMRA) consummated as the two giants entered into a collaboration agreement to enhance the ease of doing business and facilitate domestic and foreign investments in Zimbabwe.

The collaboration between the two will involve exchanging information and finding and implementing solutions to enhance the ease of doing business. ZIDA is the Government’s investment promotion agency, responsible for promoting and facilitating domestic and foreign investment in the country, while ZIMRA is the Government’s revenue collection agency, mandated to assess, collect revenue, facilitate trade and travel, and enforce the payment of taxes, levies, royalties, and duties for the country.

Two parties joined on three main areas which are investor-related services, integration of electronic systems, and ease of doing business.

ZIDA Chief Executive Officer Tafadzwa Chinamo, was qouted, saying, “Both institutions are driven by goals and targeted objectives and are determined to see the country succeed economically and socially. For us, we are saying how we can become more efficient. When an investor comes, generally, most of the interaction has to do with tax obligations”.

“We will also advise ZIMRA on policies that affect the entry, retention, and facilitation of investments in Zimbabwe and provide assistance to ZIMRA to enable it to perform its functions in terms of the legislation administered by ZIMRA,” he said.

“This collaboration goes to say let us go further to say investors comply without too much hustle and drive the economy. In Special Economic Zones (SEZ), it is upon us to make it clear what they mean, but the main issue is tax incentives, and we hope it’s the beginning and to go beyond that,” he said.

The parties shall undertake a discussion on the implications of the fiscal policies that affect investors licensed under the ZIDA Act and collaborate on possible strategies to address such implications and enhance the ease of doing business for investors whenever such may be required.

In terms of investor-related services, the parties shall collaborate and exchange information on investor-related services, including queries on taxation and tax registration services for companies and the tax treatment of expatriate employees.

The integration of electronic systems will ensure collaboration on ease of doing business through the integration of the parties’ electronic systems (E-Systems) to be identified to ensure real-time logging in of investor information and processing of issues that affect the promotion, protection, and facilitation of investments in the country.

ZIMRA Commissioner General Regina Chinamasa said, “The key is the synergies that come in through the integration strategies hinged on digitalization that will ease doing business and improve and simplify our processes. We have already seconded two of our officers to come to ZIDA and give information to our new investors so that when they come on board, they are also aware of compliant issues that exist here in Zimbabwe”.

She said, “ZIMRA is going to provide accurate, correct, and timely information to the new investors, and it is going to create awareness in terms of the tax obligations that exist, giving ZIMRA a pre- and post-investor experience. It is also a challenge to say how best we can improve the post-investment period and make sure what is communicated at ZIDA in terms of the economic environment in Zimbabwe is also demonstrated in the experience”.

As part of their joint obligations, the parties will integrate their e-systems to ensure real-time logging in of investor information and real-time processing of queries and issues that affect the promotion, protection, and facilitation of investments in the country.

Theresa Muchinguri, the Chief Legal Officer of ZIDA, said, “ZIMRA is automating their processes to be able to speak to each other and increase efficiencies, while ZIDA has already automated its processes, and that is the system that we hope can be integrated with ZIMRA. We have highlighted obligations for each party, and those are enshrined, but the bottom line is that it is clear where each party’s responsibility can begin, and then as parties collaborate in the best interest of the investor”.

“ZIDA now oversees special economic zones, and as investors come into SEZs, there are tax regimes and incentives entitled to them, and these are offered in collaboration with ZIMRA.

The collaboration aims to ensure Zimbabwe becomes an investment destination of choice.