What is Tarms and how to register it?
Imagine paying your taxes through a convenient and secure online platform. That’s exactly what ZIMRA’s new system, TaRMS (Tax and Revenue Management System), offers. It’s a game-changer designed to make tax payments hassle-free for everyone.
What is Tarms all about?
The Zimbabwe Revenue Authority (Zimra) recently launched a new online tax system called TaRMS on January 1, 2024. The old tax systems were shut down from in November 2023. All new Tax Clearance certificates were to be applied for through the new system. The term TaRMS means Tax and Revenue Management System. This means it’s time to say goodbye to Business Partner Numbers and say Hello to Tax Payer Identification Number (TIN).
How to create an account on TARMS?
Once you have successfully registered on TaRMS, you can apply for your TIN certificate which looks like the one below.
How much is TIN registration on Tarms?
TIN registration is USD $40 if done via this website. Turn around time for TIN registration is 3days.
Requirements for TIN registration:
1.Certified copies of company papers.
2.Certified copies of directors’ IDs.
3.Proof of residence for every director (attach affidavit if proof is not in director’s name).
4.Directors’ email addresses and phone numbers.
5.Current personal bank statement of one of the directors.
Some key takeaways about the TaRMS system.
This new system replaces the previous SAP TRM system and aims to simplify tax-related procedures for the convenience of taxpayers like yourself. With the implementation of TaRMS, ZIMRA has introduced several improvements and benefits:
• Duplicate Business Partner Numbers and Tax Types registrations have been eliminated.
• The system now offers online validation of Company Registration Numbers (CRN), ID numbers, and bank account numbers through integration with the Registrar of Companies, Civil Registry, and Banks.
• Public officers/representatives, directors, and shareholders can now be registered in the system.
• Automatic registration of Taxpayer Identification Numbers (TIN) and Tax Types for most entities, with only a few cases requiring ZIMRA’s approval.
• Reduction of manual registration forms, allowing taxpayers to save partially completed registration applications or tax returns in draft form for later completion.
• Ability to update master data through the Self Service Portal (SSP) without the need for human intervention.
Tax Return Management:
• Introduction of a single TIN for both USD and ZWL, enabling taxpayers to submit one return per tax period and post liabilities in both currencies for convenience.
• Full automation of most returns and claim forms, except for Capital Gains Tax and VAT for Development Partners and Entities/Individuals with Diplomatic Immunity.
• Elimination of unallocated payments in ZIMRA bank accounts and the creation of suspense accounts.
• Prevention of overpayments and duplicate payments by taxpayers, as payments are now based on the submitted return.
• Reduction of tax payment mis-postings, saving time and effort in correcting such issues.
• Ability to make a single payment to settle multiple tax obligations, providing cost-effectiveness and convenience.
• Elimination of exchange rate variations, as tax liabilities and payments are now recorded in both ZWL and USD.
• Automatic account maintenance for the taxpayer’s ledger.
• Automatic identification of refunds for processing.
• Automatic determination of any outstanding liabilities (returns and payments).
• Automatic detection of unpaid liabilities.
• Aging of liabilities based on set parameters.
• Automatic account maintenance, with tax liabilities settled directly from the single account.
• Daily calculation of interest, penalties, and their display in the taxpayer’s ledger.
• Automatic reversal of interest charges and penalties for adjusted or amended tax types liabilities.
• Reminders for payments and returns sent according to escalation procedures (excluding taxpayers who are up to date with their obligations).
• Online application for installment plans, with automatic approval based on specific criteria.
• Automatic cancellation of installment plans in case of non-payment.