Digital Tax Overhaul Doubles Registrations, Targets Informal Economy
Zimbabwe has recorded a sharp rise in taxpayer registrations following the rollout of the Tax and Revenue Management System (TaRMS), a digital platform designed to modernise the country’s tax administration.
According to Commissioner of Domestic Taxes Misheck Govha, registrations jumped from 30,689 in 2023 to 66,210 in 2024—a 115.7% increase.
In the first half of 2025 alone, another 45,726 taxpayers were added.
TaRMS replaces the outdated SAP-based system, which was plagued by data errors, duplicated taxpayer numbers, and manual processes that slowed compliance.
“TaRMS has restored integrity and efficiency in ways the old system could not,” said Govha.
Previously, taxpayers had to file multiple returns for the same period due to separate Business Partner numbers for local and foreign currency.
Even compliant businesses needed human intervention to obtain tax clearance certificates.
Economists say the reform could reshape Zimbabwe’s largely informal economy.
“TaRMS can gradually draw informal activity into the tax net. With 70% of the economy operating informally, automated monitoring creates visibility and helps build a broader base without overburdening compliant taxpayers,” said economist Gladys Shumbambiri-Mutsopotsi.
The system is now integrated with the Registrar of Companies, Civil Registry, and financial institutions—strengthening verification and curbing fraudulent registrations.
“Bogus companies could register without proper checks in the past. That era is over,” Govha added.
TaRMS also automates debt management, generates payment plans, and initiates collections—reducing pressure on both taxpayers and ZIMRA.
Through its Self-Service Portal (SSP), users can view balances, submit returns, and receive real-time updates.
QR codes on tax clearances allow instant verification, reducing fraud and boosting trust.
Economist Dr Prosper Chitambara highlighted the broader impact:
“A wider tax net means more domestic revenue for infrastructure, health, and education. It also helps formalise the economy, improving transparency and reducing vulnerability to shocks.”
Beyond registrations, TaRMS digitises audit selection, case tracking, and compliance enforcement.
Taxpayers receive instant notifications and can submit disclosures, appeals, and objections electronically.
Records are stored centrally, improving institutional memory and speeding up dispute resolution.
Despite progress, Govha noted that return submissions still fall short of the global benchmark of 80% on-time filing.
He remains optimistic that automation and education will close the gap.
“TaRMS has redefined the taxpayer experience. Compliance is now simpler, transparent, and verifiable,” he said.
As Zimbabwe pushes forward with economic reforms, TaRMS stands as a cornerstone—broadening the tax base, reducing reliance on external borrowing, and building a more resilient fiscal future.
For taxpayers long burdened by delays and paperwork, the shift to digital isn’t just a convenience—it’s a new era.
