Landlords To Pay Rental Tax Or Lose Control As Tenants Can Pay ZIMRA Directly

By Advent Shoko

HARARE – The Zimbabwe Revenue Authority (ZIMRA) has reminded landlords to pay rental tax or risk losing control of their rental income, warning that tenants may be legally authorised to pay tax directly to ZIMRA where landlords fail to comply with the law.

The newly introduced Presumptive Rental Income Tax came into force on 1 January 2026, reshaping how rental income from business premises is taxed and enforced, and firmly drawing landlords, agents and tenants into ZIMRA’s compliance framework.

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Landlords To Pay Rental Tax As ZIMRA Targets Business Premises

Under the new regime, landlords, property owners, lessors and sub-lessors earning rental income from premises used for business, trade or occupational purposes are liable for the tax. The measure applies to:

• Shops, offices and other commercial properties
• Rentals managed directly or through estate agents
• Properties owned locally or by Zimbabweans in the diaspora

Purely residential rentals are excluded. However, where a property has mixed use, only the business portion attracts the rental tax. Non-resident landlords are required to appoint a resident tax representative in Zimbabwe.

Landlords To Pay Rental Tax At 15% With No Deductions

The Presumptive Rental Income Tax is charged at 15 percent of gross rental income. ZIMRA has clarified that:

• No deductions or allowances are permitted
• Expenses such as repairs, maintenance or management costs are irrelevant
• The tax is a final tax, not refundable or creditable against other income tax
• In effect, every dollar earned from business rentals is taxed upfront.

Landlords Must Register With ZIMRA

ZIMRA reminded that all affected landlords and rent-receiving parties are required to register with the taxman:

• By 1 January 2026 if they were already earning rental income
• Within 30 days of becoming liable

They must submit:

1. A schedule of leased properties
2. Full tenant details
3. Notification of any address changes or cessation of rental activity

ZIMRA has warned that failure to register does not remove tax liability, and unpaid tax remains recoverable.

Landlords To Pay Rental Tax Or Tenants Can Pay ZIMRA Directly

In a major enforcement shift, tenants may now be legally drawn into tax collection. Where a landlord or agent fails to remit the rental tax, the Commissioner may appoint the tenant as a statutory agent, directing them to pay the tax directly to ZIMRA. Tenants who comply with such directives:

• Cannot be evicted
• Cannot face rent increases

for a period of three months, solely due to paying the tax. The provision effectively means non-compliant landlords risk losing control over their rental income streams.

Real Estate or Property Agents Face Statutory Liability

Estate agents, trustees and intermediaries handling rental income are now classified as statutory tax agents. Their responsibilities include:

• Ensuring rental tax is paid
• Remitting tax where landlords default
• Issuing withholding tax certificates
• Retaining proof of payment before releasing funds

ZIMRA has warned that agents who ignore these obligations may be held personally liable.

Landlords To Pay Rental Tax, VAT And Other Taxes Still Apply

ZIMRA has emphasised that the presumptive rental tax:

1. Does not replace Value Added Tax (VAT) where applicable
2. Does not override PAYE, non-resident tax or other withholding taxes

Landlords must remain compliant across all applicable tax categories, including the continued collection of informal trader’s tax from qualifying tenants.

No-Compliant Landlords May Face Heavy Penalties

ZIMRA warned that failure to comply may result in heavy penalties including:

• Recovery of outstanding tax
• Penalties of up to 100 percent of the unpaid amount
• Rental payments being redirected to ZIMRA through tenants

Landlords already registered for income tax are also required to clear any outstanding tax obligations. ZIMRA is urging landlords, agents and tenants to regularise their tax affairs early, warning that the new system leaves little room for avoidance.

The authority says the reforms are intended to promote fairness, transparency and national development, under its long-standing message:

“My Taxes, My Duties: Building My Zimbabwe.”

The directive was issued as Public Notice 08 of 2026 on 5 February 2026, a move that may trigger upward pressure on rental fees as landlords seek to cushion themselves by passing the tax burden to tenants. In turn, affected tenants are likely to raise the prices of goods and services to recover costs, effectively shifting the tax burden to consumers, who are already grappling with a high cost of living in a heavily taxed economy.