Zimbabwe Revenue Authority intensifies tax crackdown on rental income

The Zimbabwe Revenue Authority (ZIMRA) has intensified its tax enforcement efforts by demanding detailed property and tenant information from homeowners’ associations and landlords. This crackdown follows a government initiative to capture business activity in commercial and non-commercial buildings that has previously escaped the tax net.

In Harare, the Arlington Estate homeowners’ association notified residents that ZIMRA requested names, contact details, and tenant information under Section 39 of the Income Tax Act. A similar request was issued at the Borrowdale Brooke Golf Estate, where the association sought legal advice before agreeing to comply with demands for lease dates and owner details.

ZIMRA has introduced a presumptive rental income tax, effective January 1, 2026. This tax is charged at 15% of gross rental income for premises used for business, trade, or occupation, with no deductions allowed. Failure to comply can result in the recovery of unpaid amounts plus a penalty equal to 100% of the tax owed.

The enforcement measures have sparked discussions regarding political influence. While ZIMRA’s notices state that the tax applies to all without distinction, critics and recent studies have alleged that politically connected individuals, specifically those aligned with Zanu PF, have historically avoided scrutiny due to their influence.