Final FDS Overview

1. Introduction: Under normal circumstances the final PAYE shortfalls or underpayments should be taken care of in the Last December pay run for any company. It is quite probable that this will be the case Employers who have only paid all of their staff in ZWL (RTGS) or US$ throughout the year with no Christmas Bonuses or unusual payments. With the passage of time, however, various Tax Amendment Acts have been passed during a year that need to be taken into consideration before any Year End returns are processed.

We, at Softrite, have, thus introduced a procedure that we call the Final FDS Run. 

NB1. The term ZWL used interchangeably with RTGS to describe any monies paid in Zimbabwean currency.

NB2. The 2022 year has been split into 2 separate financial years which we signify by the term Semester throughout our Adaski software

2. Currency Combinations for 2022: We, in Zimbabwe, have a very unusual scenario this year Companies have paid their staff in one of the following ways:

2.1 Just ZWL (RTGS) for Everyone.

2.2 Just US$ for All staff

2.3 Some Months of Just ZWL and others with Just US$. A few companies have go so far as to pay staff in one pay point in Just ZWL with employees in other Pay points being paid solely in US$

2.4 Both Currencies for a few pay periods with Just ZWL for the others

2.5 Both Currencies for several periods with Just US$ in the remainder

2.6 Just ZWL in some and Just US$ in others

3. Required Returns for ZIMRA: The Tax Acts for 2022 state that the actual year 2022 is to be split into two (2) separate Financial Years for the periods ending 31st July and 31st December, 2022. Separate ITF 16 returns should be submitted for each semester. 

If there were any combinations of some months Just ZWL and some periods with any US$ then these should be detailed in different ITF16’s.

4. Final FDS Runs: The Current setup of Adaski requires you to process up to three (3) Final FDS Runs for each of those that affect your company. There is one for each of the Just ZWL semester and one for the Both Currency periods. 

Separate ITF16s will have to be submitted for each combination of these that affects your Salary and or Wage emoluments

5. PAYE Calculations:

5.1 Just ZWL 1st and 2nd Semesters: There are 2 different sets of ZWL Tax Tables for the separate semesters. The final FDS run for each one will work out a net shortfall or overpayment for each member of staff with the Other Employment Flag set to No.

5.2 Addition of Final FDS to YTD Totals: It is not imperative that you run the Pay Update for the Final FDS run for each semester. If, however, there are significant amounts involved we highly recommend that you do so. If Zimra decide to run an audit on your Payroll it is possible that they feel you under or overpaid them for the periods concerned

5.3 Zimra Communication: If you have run the Pay Update for anyone of the Final FDS Runs we recommend that you send an accompanying letter or email stating words to the effect that these were figures calculated in the Final interpretation of the PAYE requirements for 2022.