Shaphat Business Development Weekly Client Bulletin Week Beginning 31 May 2021

Important Deadlines for this week :

Kindly send through your month end schedules for us to build your management accounts.(Bank statements, Invoices, Ledgers & Trial Balances).
ITF 12C and ITF12C2 returns will be due on 30 June 2021(Small Corporates) ,31 July 2021(Medium Corporates) & 31 August 2021 (Large Corporates). Kindly review your accounts and sign the income tax assessment return for us to upload on the ZIMRA portal before due date.

ZIMRA Hot News:

ZIMRA is strengthening on its ICT projects and hoping to complete the projects by end of this year. We hope the E-services portal will improve on speed and delivery. Also in a bid to reduce smuggling of goods through borders ,the authority got funding from Treasury to implement a drone surveillance program.

Turmoil in the Market as some big shark-corporates get fined on non-compliance to provisions of Notice 38.We still insist that Notice 38 of 2021 is critical for very business for the 2020/2021 tax years as one single unhappy customer can trigger your ZIMRA tax audit . Please invoice in the transaction currency and pay taxes in the correct currency.

The public is being urged and reminded of the following !!!!!!

1) Where a sale is made in foreign currency, the invoices, till slips, or receipts recording

that sale transaction must be issued in foreign currency.

2) Where a sale is made in both local currency (ZWL) and foreign currency, the invoices,

till slips, or receipts must reflect the correct respective currency details.

3) To always request or be issued with a receipt/invoice in the currency of trade as used

in the transaction.

4) Report any such business that do not comply with issuance of invoices, till slips or

receipts showing the correct currency of trade. Please report to the nearest ZIMRA

Office or ZIMRA HOTLINES 08004422/08004423 or through the email address:

Non-FiscalisationReport@zimra.co.zw

Money & Banking news:

Did you know that your bankers affect the way you do business. Your company’s controls on bank and cash resonate the service & products that your bank offers;

Try to download a weekly bank statement from your internet banking platform or put our email up for email statements (info@shaphat.com ) for us to update your management accounts frequently and give you timely information.
Always remember that not all your transactions attract 2% IMMT Tax .We can only help you to save money if we perform your bank reconciliations timely.

Interesting banking products trending in the market;

Stanbic bank is offering a Non- Contact transacting card. You simply tap and pay for your purchases. This could go a long way saving clients from Covid-19 contractions. This product makes more sense after the Indian Variant of Covid-19 surfaced in Zimbabwe recently.

Potential Reasons Why you are not being allotted forex at the RBZ Auction Rate ;

Your bid was not eligible in terms of the Priority List. The manufacturing sector topped most of the forex historic allocations according to the RBZ list of beneficiaries. This could be because the monetary policy committee wishes to stimulate production that will generate exports and jobs simultaneously.
Your company was red flagged for overdue CD1s. This applies if you are an exporter.
Your company was red flagged for overdue Bills of Entry (BOEs).This applies if you are an importer.
There was sufficient balances in your FCA accounts. The RBZ,NSSA and ZIMRA intelligence units have a software that can fish out all bank accounts associated to a company besides the statements that you submit.
Your bidding rate was an outlier.
Your paper work was not in order.
The RBZ auction weighted exchange rate results for Tuesday 26 May 2021 was 84.7259 .We await for 1 June 2021 results tomorrow.

Markets and Stocks for the week ending 26 May 2021.

The Rand was trading at USD1:ZAR13.81620 against the American dollar.
Gold was trading at USD1,906.41 per ounce. The yellow metal prices firmed compared to our last bulletin.
Platinum was trading at USD1,196.00 per ounce.
The monetary policy committee meeting held on 30 April 2021 noted inflation figures at March(240.1%),April 2021 (194%) & May 2021(161%). A 55% inflation rate is targeted by the close of July 2021.
GDP growth rate for 2021 is still targeted at 7.4% at the back of a targeted single digit inflation rate.
RBZ approved a ZWL500 million facility for term finance for Micro, Small & Medium Enterprises to be accessed from banks & micro finance institutions @30% per annum. Time to have your books of accounts updated and business plans in place. Inflation rate at 161% and Interest rate at 30%. This credit is affordable.
Experts warn that the ZSE may now be overvalued with a market capitalization of ZWL630 billion. Most fundamental ratios such as Earnings per Share & Price Earnings Ratio will be distorted. Too much investor money chasing too few investment opportunities. Another reason for this trend could be failure by foreign investors to repatriate dividends.
On the other hand the VFSE still has one single listing which is Seedco . The foreign currency denominated exchange has both exchange control & tax incentives but companies are reluctant to jump on to the stock exchange. Could it be an alternative to the RBZ auction system for getting the green back ?. Recently forex retention ratios were improved on above average export volumes to 100% against 60% as an incentive to attract exporters.

Other News:

Jabs from SI 127 of 2021;

SI 127 of 2021 introduced last week is compelling businesses to use the official RBZ exchange rate in business transactions. The Statutory Instrument made it illegal to give customers a discount for paying for goods or services in foreign currency, refuse to take local currency payments at the official exchange rate and issue Zimbabwe dollar receipts for goods paid for in foreign currency.
Authorities advised that the S.I is not designed to harm business but to provide a level playing field for business and to protect consumers. The purpose of the S.I is to ensure that those obtaining foreign currency from the auction system do not use parallel market rates for pricing.
The use of foreign currency for the payment of goods and services is still allowed as per S.I 85 of 2020.
Businesses have been given 2 weeks to regularize their systems so that they can comply with the SI on the receipting of goods & services in either foreign currency or local currency.

Get your NSSA Clearance Certificate. The NSSA clearance certificate covers the following advantages ;

Covers employees in the event of work related injury ,sickness or death.
Enables you to bid for tenders ,expression of interest ,and enlistment as a preferred supplier.
When you enlist the services of a contractor with a NSSA clearance certificate, you are covered from incurring liability when the contractor’s employee is injured. Enlisting a non-registered contractor transfers the risk to your business.

NSSA is introducing an e-services portal that will go a long way in automating all the processes.

Employees will be able to log in to view & edit their dependents and personal details in the comfort of their homes. The P3 form has just turned digital.
Employees will also be able to view employment history & social security numbers(SSN).
Employees will also be able to generate employee contribution reports.
Did you know that your pension receipts will be taxable for income tax once you start receiving your mudyandigere ?

Get registered for ZIMDEF and improve your compliance and help the nation develop its manpower base. It’s always a win-win situation with ZIMDEF. A lot of organizations fail to claim a rebate for salaries paid to interns that go through polytechnics. You need a smart accountant to save you every dollar possible.