- ZIMRA has developed a new tax administration system to replace the previous system, the tax and revenue management system (TaRMS). The tax and revenue management system (TaRMS) is used to manage domestic taxes.
- ZIMRA has introduced TaRMS, a new automated revenue collection scheme for domestic tax. An acronym stands for tax and revenue management system.
What does TaRMS stand for?
- Tax and Revenue Management Systems
Definition
- TaRMS is a new automated revenue collection scheme for domestic tax.
Reasons to use TaRMS
- The system would replace the existing system (SAP TRM) in domestic taxes, which was causing a slew of administrative challenges, affecting taxpayer service.
- The new system will increase the efficiency of tax collection and service delivery to customers.
- TaRMS has enabled many operations to be automated, eliminating human interaction and bureaucracy in the tax administration process.
- It will eliminate the need for taxpayers to visit the ZIMRA offices for services on a regular basis. • In terms of payments, the TaRMS system would eliminate a number of obstacles that were encountered during payments processing. The tax payer only has to worry about transferring funds to the ZIMRA single account at his/her preferred bank and submitting the reports, and the system will handle payments allocations and assessments, as well as refund processes.
Benefits of TaRMS include:
- Taxpayer registration
- Elimination of duplicate business partner numbers and tax types registrations.
Taxpayer Registration will include:
- The registrar of companies, civil registry, and banks, on-line validation of company registration numbers (CRN), ID numbers, and bank account numbers is available.
- The system can register public officer/representative, directors, and shareholders. For all entities except for those that require ZIMRA approval, the taxpayer identification number (TIN) and tax type’s registration will be automatic.
- Manual registration forms can be reduced by a self-service portal (SSP) the taxpayer can save partially completed taxpayer registration application forms or tax return in draft for later use.
- With SSP, the taxpayer can update master data without the need for human intervention.
Management of tax returns
- One TIN for both USD and ZWL: in TaRMS, a taxpayer submits one report per tax year and posts liabilities in ZWL and USD. (Convenient for the taxpayer.)
- All returns/claim forms are fully automated, except for the following, which are partially automated:
- capital gains tax for development partners
- VAT for entities/individuals with diplomatic immunity.
TARMS will cover the following:
- Taxpayer Registration
- Tax Returns Processing
- Tax Payments
- Refunds
- Revenue Accounting
- Taxpayer Accounting
- Debt Management
- Tax Agents Management
- Audit and Risk Management
- Case Management
- Reporting
Payments management
- the system will eliminate the problem of unallocated payments in ZIMRA bank accounts and
- Omit the creation of a suspense account.
- Since payment is based on the report submitted, TaRMS will eliminate overpayments and duplicate payments by taxpayers.
- Tax payments that were mis-posted will now be eliminated (time expended on resolving mis-posted payments will now be wiped out).
- To pay many tax bills in one bill, it is possible to make a single payment, making it more cost-effective and convenient for the taxpayer.
- There will be no exchange rate fluctuations because:
- Tax obligations will be only in ZWL and USD.
- Payments will also be made in ZWL and USD.
- The taxpayer’s ledger will be automatically updated with TaRMS.
Refunds management
- TaRMS will automatically detect refunds for processing.
Management of Debts
- Any outstanding debts are automatically determined (returns and payments).
- Debt management automatic detection of unpaid debts. Assets are automatically aging according to specified conditions.
- Since a tax owing in the report is paid directly from the single account, automatic account maintenance is performed.
- Interest is calculated on a daily basis, is updated and displayed in the taxpayer ledger. The system automatically calculates fines from the due date and posts them to the taxpayer ledger.
- On all adjusted/amended tax types liabilities, TaRMS will be able to automatically reverse interest rates and penalties.
- According to the escalation rules, the system will be able to automatically send reminders for payments and returns prior to, on, and after the due date. (To taxpayers who are up to date with their payments and returns will not be notified).
Online Application
- The taxpayer can apply for instalment plans online.
- TaRMS will automatically accept some installment plan applications based on set criteria. If a payment plan is not followed, the payment plan is automatically be cancelled.
How to register TaRMS ZIMRA online
- At mytaxselfservice.zimra.co.zw, visit the official self-service portal – SSP. Create an SSP account by clicking on the “sign up” button and following the instructions to obtain your username and password. C. log into the system using your username and password and follow the instructions as directed.
How can I get a tax clearance certificate from TaRMS?
- Taxpayers who are already in the ZIMRA master database should have provided the taxpayer identification number, tin, and registered in TaRMS through the self-service portal (SSP) in order to access their tax clearance certificates.
How are taxpayers referred to in TaRMS?
- A tin is used to identify taxpayers in TaRMS, which stands for taxpayer identification number. This will replace the current business partner numbers that taxpayers are currently using.
- The TaRMS will automatically assign tins to existing taxpayers and send them to their registered email addresses.
- On successful registration in TaRMS, new taxpayers will be given tin. The registration procedure is an online process that tax payers will be able to perform from their laptops, desktops, tablets, cellphones, etc. . . .
What is a TIN number
- The term ‘TIN’ refers to a taxpayer identification number*. A tin is a unique combination of letters or numbers assigned by a jurisdiction to an individual or an entity in order to identify the individual or entity for the purposes of administering the tax laws of such jurisdiction.
All taxpayers are encouraged to contact their nearest ZIMRA offices.
