Zimbabwe: Tax agent registration in Zimbabwe

Zimbabwe has for the first time introduced a law that prohibits anyone who is not registered as a tax agent to carry out the duties of a tax agent (si 125 of 2023). While it has been the practice to have customs clearing agents regulated and licensed each and every year by the revenue authority, the same was not true for Domestic taxes. There was no law that prohibited anyone from conducting the business of a tax agent.

As with any change this has been met with many different views. One argues that an agent represents the principal and as such the principal has a right to choose any agent of his choice, irrespective of whether that person is registered or not. Further, the regulating authority is also the licensing authority, which gives rise to the question who then handles disputes should they arise.

On the contrary others believe that tax agents should at least be subject to some vetting process and ensure that the persons conducting the business are actually qualified to do the business.

Questions have been asked as to the relevance of registering one as a tax agent in Zimbabwe. Tax agent business has always been done successfully in Zimbabwe since time immemorial without any form of registration. The registration however seems to have become a world practice.

•   Is this necessary or it’s just another way of trying to unnecessarily hinder the freedoms of business enterprises.

•   Does the revenue authority have the capacity to regulate the tax agents and to what end?

•   The registration of clearing agents by the same authority has been compulsory since time immemorial, has this stopped unregistered persons from conducting clearing agent business.

•   How ethical is it to have the tax office being the registering authority at the same time? Given the history of corruption that stains the good standing of the authority.

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Reference/ citation

The newly gazzettedZimbabwe Statutory Instrument 125 of 2023