Prepayments tax status

Companies tend to make prepayments because suppliers may insist on receiving payments before they make a supply. This is often a custom in the insurance industry, where they request for premiums before the insurer covers the insured against a risk. For the purposes of renting out commercial premises, licenses are often paid for in advance before granting right of use to the tenant. Prepayments can be made by customers who may want to benefit from discounts and economies of scale. Prepayments constitute a very popular expenditure for most entities, but most tax payers often wonder the tax status of these expenses, especially considering amendments done towards the tax status of prepayments in Zimbabwe. In this article we look at the tax status of prepayments in our legislation, highlighting amendments implemented. https://www.matrixtaxschool.co.zw/2020/07/27/prepayments-tax-status/