A dormant company is one that has been incorporated at Companies House but is not currently carrying on any kind of business activity or receiving any form of income. Many schools of thought consider this type of company to be dormant (inactive) for Corporation Tax purposes. There are so many reasons why a company can result into being dormant such as restructuring a previously active business or protecting a trading name to prevent it from being registered by another business.

Though dormant, a company should submit its PAYE return. A dormant company submits what we call nil returns. Basically it means we are showing that we have zero employees therefore we do not have any PAYE to remit. The steps below will show you how to submit a nil PAYE return on the ZIMRA portal.

Step 1. Click submission on the pop up that rolls down when you click Manage services on your dashboard.

Step 2. Clicking submissions will lead you to the list of your submissions on which you will click PAYE tab to load the next the page.

Step 3. You will then land on the PAYE fill in page, on which you choose your tax period. For example in the image below we chose 2020 September hence (2009). On Total Remuneration you put $1, On Number of Employees you put 1 then on Gross Salary you put $0. After putting this you then click next and next then put you Electronic signature and designation and hit submit.

Those are the 3 easy steps to submit your PAYE nil return. Check out how to handle your VAT and Income tax when dormant.