ZIDA, ZIMRA sign collaboration agreement
The Zimbabwe Investment and Development Agency (ZIDA) and the Zimbabwe Revenue Authority (ZIMRA) have entered into a collaboration agreement that will enhance the ease of doing business and facilitate domestic and foreign investments in Zimbabwe.
ZIDA is the Government’s investment promotion agency, responsible for promoting and facilitating domestic and foreign investment in the country, while ZIMRA is the Government’s revenue collection agency, mandated to assess, collect revenue, facilitate trade and travel, and enforce the payment of taxes, levies, royalties, and duties for the country.
The collaborative relationship between the parties signed last Friday will involve the exchange of information, real-time processing of investor-related issues, finding and implementing solutions to enhance the ease of doing business, and facilitating investments.
The parties agreed to collaborate on three main areas: ease of doing business, investor-related services, and integration of electronic systems.
ZIDA chief executive Mr Tafadzwa Chinamo, at the memorandum of understanding (MOU) signing ceremony, said both institutions are driven by goals and targeted objectives and are determined to see the country succeed economically and socially.
“For us, we are saying how we can become more efficient. When an investor comes, generally, most of the interaction has to do with tax obligations,” he said.
Mr Chinamo added that ZIDA shall provide ZIMRA with information on registered investors, including but not limited to details of any expatriate employees of the investors and details of local partners, if any.
“We will also advise ZIMRA on policies that affect the entry, retention, and facilitation of investments in Zimbabwe and provide assistance to ZIMRA to enable it to perform its functions in terms of the legislation administered by ZIMRA,” he said.
Mr Chinamo noted that what is more worrying for ZIDA is that with all the investment numbers, the Fiscus is not improving commensurate with revenue performance; hence, the partnership will ensure that when the investor comes in, they are aware of their tax obligations.
“This collaboration goes to say let us go further to say investors comply without too much hustle and drive the economy. In Special Economic Zones (SEZ), it is upon us to make it clear what they mean, but the main issue is tax incentives, and we hope it’s the beginning and to go beyond that,” he said.
On the ease of doing business, the parties shall undertake discussion on the implications of the fiscal policies that affect investors licensed under the ZIDA Act and collaborate on possible strategies to address such implications and enhance the ease of doing business for investors whenever such may be required.
In terms of investor-related services, the parties shall collaborate and exchange information on investor-related services, including queries on taxation and tax registration services for companies and the tax treatment of expatriate employees.
The integration of electronic systems will ensure collaboration on ease of doing business through the integration of the parties’ electronic systems (E-Systems) to be identified to ensure real-time logging in of investor information and processing of issues that affect the promotion, protection, and facilitation of investments in the country.
ZIMRA Commissioner General Ms Regina Chinamasa said the key is the synergies that come in through the integration strategies hinged on digitalisation that will ease doing business and improve and simplify our processes.
“There has been a lot of activity happening on the digitalisation side of business, so this possibility of integrating our systems is an enhancement of the partnership that existed even before the MOU.
“We have already seconded two of our officers to come to ZIDA and give information to our new investors so that when they come on board, they are also aware of compliant issues that exist here in Zimbabwe,” she said.
She said ZIMRA is going to provide accurate, correct, and timely information to the new investors, and it is going to create awareness in terms of the tax obligations that exist, giving ZIMRA a pre- and post-investor experience.
“It is also a challenge to say how best we can improve the post-investment period and make sure what is communicated at ZIDA in terms of the economic environment in Zimbabwe is also demonstrated in the experience.
“As we move forward, it is important that even where you are working on investment policy, you also have adequate information in terms of monitoring and evaluation of the nature and quality of our investments.
“On our side, we also need information upfront to know who we are dealing with in order to enhance compliance,” she said.
As part of their joint obligations, the parties will integrate their e-systems to ensure real-time logging in of investor information and real-time processing of queries and issues that affect the promotion, protection, and facilitation of investments in the country.
The parties will endeavour to resolve any policy inconsistencies between their respective regulatory frameworks and, to the best of their abilities, advocate for policy change, if necessary, to enhance the ease of doing business.
Theresa Muchinguri, the chief legal officer of ZIDA, said ZIMRA is automating their processes to be able to speak to each other and increase efficiencies, while ZIDA has already automated its processes, and that is the system that we hope can be integrated with ZIMRA.
“We have highlighted obligations for each party, and those are enshrined, but the bottom line is that it is clear where each party’s responsibility can begin, and then as parties collaborate in the best interest of the investor,” she said.
She said ZIDA now oversees special economic zones, and as investors come into SEZs, there are tax regimes and incentives entitled to them, and these are offered in collaboration with ZIMRA.
“The collaboration aims to ensure Zimbabwe becomes an investment destination of choice,” said Muchinguri.
The parties shall, within thirty days of the date of signing of the agreement, constitute a technical committee that shall be responsible for the implementation of this agreement.-herald
