Tender Withholding Tax

Calculate withholding tax on tender awards and government contracts. Applicable to payments made to contractors and suppliers.

Tender Tax Calculation

Standard Rate (15%)
Most tender contracts
Reduced Rate (10%)
Specific categories
Preferential Rate (5%)
Small enterprises
Exempt (0%)
Government entities

* The actual rate applied is dynamically determined by ZIMRA based on contractor category and contract type

Tender Withholding Tax

Standard Rate:15%
Reduced Rate:5-10%
Payment Deadline:14 days
Filing Deadline:14 days after payment

Tender Tax Tips

  • Applies to all government and local authority tenders
  • Reduced rates for small and medium enterprises
  • Tax must be withheld by the contracting authority
  • File returns within 14 days of payment

Applicable Tenders

Withholding tax applies to:

Government department contracts
Local authority tenders
State-owned enterprise contracts
Parastatal procurement
Municipal service contracts

Compliance Requirements

  • Withhold tax at source when making tender payments
  • Submit withholding tax return (Form ITF 263)
  • Pay tax due within 14 days of payment to contractor
  • Maintain tender documents and payment records

Contractor Categories

Large Enterprises:15%
Medium Enterprises:10%
Small Enterprises:5%
Exempt Entities:0%