Zimra targets condo owners

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THE Zimbabwe Revenue Authority (Zimra) is targeting property owners who have been avoiding paying taxes.
This comes as the national tax collector is under pressure to reach an inflated revenue target of $57 billion for this year.
Zimra said it noted that several condominium property owners were not remitting tax on either disposal or rental income. Also known as a condo, a condominium involves housing consisting of a complex of dwelling units as an apartment house in which each unit is individually owned.
Zimra said in terms of the income tax if the property is being leased out, the lessor must register for income tax for rental income. “If the lessor attains the VAT (value added tax) threshold he should register for VAT in terms of section 23 of the VAT Act.
“All taxpayers with properties owned under such arrangements and have not been complying with the above tax laws, are thereby required to come forward and make voluntary disclosure,” Zimra said.
The taxman also added that if the owner decides to sell the apartment it should be treated in terms of the Capital Gains tax (Chapter 23:01).
Under a condo, the owner gets the exclusive right to the interior space of a dwelling unit, but the land, walls, grounds, fences and facilities are owned in common with the other owners in the complex — which is different from a single-family home.

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