Withholding Tax on Contracts Calculator
30% withholding tax under s.80 of the Income Tax Act on payments to contractors without a valid Tax Clearance Certificate (ITF 263). Net-from-gross and gross-up modes.
Contract details
Tell us whether your contractor presented a valid TCC, and pick the calculation direction.
Threshold note: WHT applies where the amounts payable to a supplier under contracts total USD 1,000 or more over the year of assessment (s.80(1) “contract”, as amended by Finance Act 13/2023). Below that, no WHT obligation arises — though good practice is still to ask for the TCC.
Step-by-step walkthrough
Verify the TCC
Ask for the original ITF 263 and verify it on ZIMRA's online portal. Note the certificate number, the period it covers and the exact taxpayer name — it must match your supplier exactly.
Compute WHT (gross-down)
If you know the gross: WHT = Gross × 30%. The contractor receives Net = Gross − WHT.
Or gross-up if the net is fixed
If the contractor insists on a net amount: Gross = Net / (1 − rate). At 30% that's Net / 0.7. WHT is then 30% of the grossed-up amount.
Issue the REV 5 certificate
Within 30 days, give the contractor a Withholding Tax Certificate (REV 5) for credit against their tax.
Remit to ZIMRA on the WHT return
WHT is due by the 10th of the following month (s.80(2)). Failure to withhold or remit makes the payer liable for the tax plus a further amount equal to it under s.80(7), waivable under s.80(9) — see our Penalty calculator.
Statutory anchors
- Income Tax Act [Chapter 23:06] — s.80 (WHT on amounts payable under contracts)
- Finance Act 7/2021 (rate 10% → 30%) & Finance Act 13/2023 (US$1,000 threshold)
- ZIMRA Public Notice on TCC verification