Zimbabwe | ZIMRA Non-FDS Payroll Submission Method

Zimbabwe | ZIMRA Non-FDS Payroll Submission Method

ZIMRA has recently introduced a new Non-FDS (Non–Final Deduction System) calculation method within the TaRMS portal. This option was not previously available for PAYE submissions and forms part of ZIMRA’s ongoing enhancements to the electronic filing system.

Historically, TaRMS allowed only the selection of Averaging or Forecasting as calculation methods for PAYE returns. Our Zimbabwe payroll operations have correctly aligned with these requirements by using the Averaging Method, which corresponds to ZIMRA’s treatment of FDS employees, that is, employees employed for the full tax year under a single employer.

What is Non-FDS and how does it differ from FDS?
In simple terms, FDS applies to employees who are on payroll for the full tax year, and tax is calculated on a cumulative (year-to-date) basis using ZIMRA’s Averaging Method.
The new Non-FDS method applies to employees who are not employed for the full year or who have multiple or irregular employments. Under this method, PAYE is calculated on a per-period (non-cumulative) basis, which aligns with how ZIMRA now requires these employees to be reported in TaRMS.
With the rollout of the Non-FDS method, ZIMRA is formalizing a distinction for employees who:
  1. join employment after January,
  2. work part-time or seasonally,
  3. have secondary or multiple employments, or
  4. otherwise do not meet the full-year FDS criteria.

ZIMRA’s publication on the new functionality can be found here: 👉https://www.zimra.co.zw/news/22-taxmans-corner/2343-non-fds-calculation-method
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To ensure full alignment with this updated framework, we will be introducing support for the non-FDS calculation method in our system during the coming year. This enhancement will allow users to distinguish between FDS and Non-FDS employees as required for TaRMS submissions.
 
Until the new method is deployed, we will continue following the existing ZIMRA-compatible process (Averaging Method) for current PAYE submissions. The introduction of Non-FDS represents a new requirement, and our implementation approach ensures that both our system and operational processes remain fully aligned with ZIMRA’s evolving standards.
Further details and operational guidance will follow.

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