Church Tax: Hungry Mthuli Unleashes ZIMRA on Churches
Taxable items include proceeds from the sale of church literature, books, or music, revenue from the sale of church-branded merchandise (e.g., apparel, anointing oils, artefacts, etc.), and income from the sale of meals, clothing, or similar items.
Church Tax: Hungry Mthuli Unleashes ZIMRA on Churches
Zimbabwe Revenue Authority (ZIMRA) has reminded churches about their obligation to pay tax on income generated from trading activities.
The revenue authority said that while income from donations, tithes, and offerings remains exempt, revenue earned from selling goods such as books, anointing oils, or other merchandise must be declared and is subject to taxation.
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In a public notice dated 11 December 2024, ZIMRA outlined the tax guidelines for churches and announced an upcoming stakeholder meeting to address questions and enhance compliance.
For now, ZINWA will not tax the church's traditional sources of income such as tithes, offerings, and donations. These remain outside the scope of income tax.
“Incomes received or accrued from donations, tithes, offerings, or other contributions made by members or benefactors of the church or its institutions remain exempt from tax,” the notice read.
The tax authority added that non-trading receipts, or income that is not linked to trade or investment activities are also not taxable.
This means that regular member contributions are not subject to tax scrutiny although it is not clear how to distinguish them.
ZIMRA for now are coming for money made from selling goods or services. If a church engages in trading activities, it is obligated to pay tax on the income.
Church Tax: Hungry Mthuli Unleashes ZIMRA on Churches
Income derived from trading activities is subject to income tax. Examples of taxable income include, but are not limited to, proceeds from the sale of church literature, books, or music, revenue from the sale of church-branded merchandise (e.g., apparel, anointing oils, artefacts, etc.), and income from the sale of meals, clothing, or similar items.
The authority said that these sales attract VAT if they meet certain thresholds.
ZIMRA urged churches to register for all applicable taxes, submit returns on time, and ensure full payments. They warned:
“Outstanding tax returns and payments must be addressed promptly to avoid penalties, interest, and litigation. Timely compliance is key to avoiding unnecessary penalties and ensuring smooth operations.”
While the exact date and venue of the forum will be announced later, ZIMRA urged churches to use its Self-Service Portal and regional kiosks to file returns and make payments.
