CRITICAL ZIMRA TaRMS Update: Understanding the New NON-FDS option and Necessary Client Actions

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CRITICAL ZIMRA TaRMS Update: Understanding the New NON-FDS option and Necessary Client Actions
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CRITICAL ZIMRA TaRMS Update: Understanding the New NON-FDS option and Necessary Client Actions

We are following up on the latest ZIMRA development in the Tax and Revenue Management System (TaRMS): the introduction of the NON-FDS option.

The Positive Development (Fixing Variances):

This new feature is a positive step forward. ZIMRA has introduced the NON-FDS mechanism to effectively address a key issue: the sources of tax variances that many clients have been experiencing due to this option not being available in TaRMS, but present in Belina. The NON-FDS option allows for monthly assessment for employees not present for a full Tax year.

Current Uncertainties & Necessary Caution:

While the development is excellent, the operational rollout has presented some matters requiring clarity, and technical hurdles:

  1. Platform Errors: We acknowledge that some clients are experiencing genuine TaRMS platform errors, which are preventing smooth upload.
  2. Back-Dating Uncertainty: It is not yet clear whether ZIMRA will require clients to re-upload data dating back to February 2025.
  3. We are currently confirming the full alignment of the non-FDS tax calculation between Belina and TaRMS.
  4. How to currently treat employees who commenced employment after the beginning of 2025 but have been on FDS Average this year due to the lack of any non-FDS option.

Our Official Recommendation:

Due to these current uncertainties, we strongly recommend that clients first seek direct clarification:

Action 1: Seek Clarity. We advise you to immediately contact your ZIMRA Liaison Officer or the TaRMS Technical Team at Kurima House to gain definitive guidance on this NON- FDS option. The back-dating requirements, tax calculation verification and system errors before proceeding with any large-scale data upload.

Guidance for Clients Proceeding with Split Upload (Technical Note):

For clients who elect to proceed with the split FDS and NON-FDS upload, please note that Belina is yet to release an update with this new feature incorporated.

You can proceed by following this interim process:

  • Export the PAYE Report: Export the PAYE report from Belina showing the tax method for each employee. (View – Tax – PAYE). Before selecting Preview. Please Tick Print Zero PAYE Employees.
  • Generate Two Returns: Using the PAYE report, you will need to manually generate two separate TaRMS returns for upload.
    • One return for FDS employees.
    • One return for NON-FDS employees.

To generate the two returns, follow your usual TaRMS export process. (Utilities – Exports – ZIMRA TaRMS – Employee Earnings)

Take care on the range selection window just after selecting the destination folder.

Tick Use Tagging and select Employees.

Manually tag the employees on FDS Average/Forecast and then export your TaRMS return. You can use the tag all option, then untick the employees on PAYE(NON-FDS).

Then repeat the same process and tag the employees on NON-FDS/ PAYE.  Name the two file distinctly to reflect the FDS Employee file and the NON-FDS employees to avoid mixing the two files

This will generate two returns, which can then be uploaded into TaRMS, starting with the FDS employees file.

Sincerely,

Team Belina