The Zimbabwe Revenue Authority (ZIMRA) has introduced the new Presumptive Rental Income Tax, which takes effect from January 1, 2026, under the Finance Act, 2025 (Act No. 7 of 2025).
The new tax applies to property owners, tenants, agents, and the general public who are involved in the leasing of land or buildings for commercial purposes.
According to ZIMRA, the tax is payable by proprietors, landlords, owners, lessees, or sub-lessees who receive rental income directly or indirectly from tenants conducting business on their premises. Zimbabwean citizens, including those in the diaspora, who lease land or properties for commercial use are required to register. Non-resident proprietors must appoint a resident representative in Zimbabwe to fulfill their obligations.
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Tenants liable for presumptive tax are those who occupy premises to conduct trade, business, or other occupations. Importantly, rental income from residential units is exempt from this tax. The tax is charged at a flat rate of 15% of gross rental income and is considered final. No deductions or allowances will be permitted, and the tax cannot be offset against other income taxes or claimed as a refund.
Any person leasing property for commercial purposes is required to register with ZIMRA. Registrable proprietors already receiving rental income must register by January 1, 2026, while new proprietors have thirty days from the date they start leasing properties. They must also submit a schedule of properties and tenant details and notify ZIMRA of any changes in address or cessation of rental activities. ZIMRA emphasizes that failure to register does not exempt a person from liability to pay the tax.
The law also imposes responsibilities on agents, sub-lessees, and trustees who receive rental payments on behalf of the proprietors. These intermediaries are required to remit the tax to ZIMRA and issue a withholding certificate in the prescribed form. Estate agents are particularly reminded to verify that presumptive rental income tax has been paid before disbursing funds and to retain proof of payment.
Where proprietors fail to remit the tax, the Commissioner General may require tenants to pay the tax directly to ZIMRA. In such cases, tenants are protected from eviction or rent increases for a period of three months solely due to compliance with the tax obligation.
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