Zimbabwe National Budget Proposals - 2019 Including 2018 Tax Facts - Building a better working world - EY
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Zimbabwe National Budget Proposals 2019 Including 2018 Tax Facts Building a better working world
Partnering with a connected EY Tax team
We have a multi-disciplinary team available to serve our clients. The team is
passionate and committed to building long-term relationship with our clients.
Josephine Banda
Partner & Sub Area Leader Ahmed Lunat
for Central Africa Partner - Accounting
(Malawi, Zambia & Zimbabwe)
Compliance & Reporting
Direct Line : +263 4 773 926 Mobile : +263 772 806 756
Mobile : +263 774 486 408 ahmed.lunat@zw.ey.com
josephine.banda@zw.ey.com
Lonah Kali Fungai Vongayi
Associate Director - Associate Director -
International Tax Transfer Pricing
Mobile : +263 712 417 841 Mobile : +263 776 059 157
lonah.kali@zw.ey.com fungai.vongayi@zw.ey.com
Shelton Kusotera Sifelani Nhliziyo
Senior Manager - Senior Manager -
Indirect Tax Tax Bulawayo
Mobile : +263 772 913 115 Mobile : +263 775 471 074
shelton.kusotera@zw.ey.com sifelani.nhliziyo@zw.ey.com
2019 BUDGET PROPOSALS
The Minister of Finance & Economic Development
presented his 2019 budget proposals to the Parliament of
Zimbabwe on Thursday, 22 September 2018.
We highlight below the proposed tax changes.
Should you require any further clarification, please do not
hesitate to contact us.
Individual Taxation
With effect from 1 January 2019
Employee annual tax free threshold increased by $600 to $4 200.
Top rate of tax reduced from 50% to 45% on annual amounts in excess
of $240 000
PAYE calculation up to $240 000
USD Rate PAYE
0 to 4200 0 0
4201 to 18 000 20 2 760
18 001 to 60 000 25 10 500
60 001 to 120 000 30 18 000
120 001 to 180 000 35 21 000
180 001 to 240 000 40 24 000
240 001 plus 45
Corporate tax
Foreign e'commerce and broadcasting services to Zimbabwe
With effect from 1 January 2019
Income accruing to foreign domiciled satellite and broadcasting service and
foreign based persons who sell goods and services via electronic commerce
platforms with a minimum prescribed amount are required to pay corporate tax in
Zimbabwe.
The persons must register with ZIMRA and appoint Public Officers or agents to act
on their behalf.
They must also have a tax clearance certificate to enable remittance of funds. .
1
2019 BUDGET PROPOSALS 1
2019 Budget Proposal
Allowable expenditure from separate mining 2% Intermediated Money Transfer Tax
locations With effect from 13 October 2018
With effect from 1 January 2019 The Minister has now formalized SI 205 of 13 October
Expenditure from different mining locations held by the 2018 into law with minor amendments.
same taxpayer for minerals forming part of an integrated
process of beneficiation under the control of the Value Added Tax (VAT)
taxpayer is allowable. Payment of VAT
With effect from 1 January 2019
Directors liable for tax VAT Act to be amended to allow payment of outstanding
With effect from 1 January 2019 VAT in the order of principal, penalty and interest.
Directors who dissolve or liquidate a company with a tax
liability to avoid tax payment but subsequently form a Supply
new company to pursue the same business will be liable
With effect from 1 January 2018
for the tax of the old company.
The definition of supply amended to include the supply
of imported services.
10% Tender Clearance Tax
With effect from 1 January 2019 Time of supply
10% withholding tax on tenders is not chargeable on
With effect from 1 January 2018
persons whose income is subject to non-residents tax
Supply is deemed to take place on the earlier of:
on fees, remittances or royalties.
- An invoice is raised by the supplier or the recipient in
Private schools are condoned for not withholding 10%
respect of that supply; or
tax for 2009 to 2017 period.
- Any payment of consideration is received by the
RBZ is exempted from withholding 10% tax on interest
supplier in respect of that supply; or
from Treasury Bills where a tax clearance certificate was
- Time of removal from the place of sale of movable
not furnished.
goods; or
- Time the recipient takes possession of immovable
Transfer Pricing penalties goods; or
With effect from 1 January 2019 - Time a service is performed.
The Commissioner is empowered to raise penalties in
the following circumstances:
Payment of tax in currency of collection
- 100% of the shortfall where there is evidence that a
With effect from 1 January 2019.
scheme was designed to avoid payment of tax.
VAT, corporate tax, CGT and other taxes and penalties
- 30% of the shortfall where there is no or inadequate
will be payable in the currency of collection.
Transfer Pricing documents supportive of arm's
Civil penalties are subject to the lower of $30 per day or
length pricing;
level 4 penalties.
- 10% where the related party transactions do not
meet the arms length principle.
Export on unbeneficiated platinum
Taxpayer is required to disclose details of transactions
The collection of VAT on export of unbeneficiated
with related parties on the self-assessment return. st
platinum is postponed to 1 January 2022.
TB Income exempt from income tax
Export on raw hides
With effect from 1 January 2019
With effect from 1st January 2019
Financial Institution's income from Treasury Bills
VAT on export of excess raw hides to be exempted on a
specifically stated as tax free is exempt from income tax.
biannual basis.
2
2019 Budget Proposal
Medical Statutory Bodies Customs and Excise
With effect from 2009 to 30 November 2018 Payment of customs duties
Medical Statutory Bodies are exempted from VAT With effect from 23 November 2018
retrospectively from 2009 to 30 November 2018. Customs duty, VAT and surtax as applicable on a
comprehensive list of items including motor vehicles is
Input tax payable in prescribed currency
With effect from 1 January 2019 No bond notes, RTGS payments are allowed.
Commissioner empowered to approve the claiming of
input tax after prescribed time for good cause. Excise duty on fuel
With effect from 1 December 2018
Powers of search Excise duty increased by 7cents per litre on diesel and
st
With effect from 1 January 2019 paraffin and 6.5 cents per litre on petrol.
New section inserted in the Zimbabwe Revenue
Authority Act to empower the Commissioner or an Sanitary ware
authorized officer to obtain a search warrant in respect st
With effect from 1 December 2018
of certain private residential premises where there is Customs duty is suspended for 12 months on imported
reasonable ground that they are being used for sanitary ware. VAT thereon is exempted.
business.
Cigarettes & beverages
st
With effect from 1 December 2018
Excise duty rate for cigarettes increased by $5 from $20
to $25 per 1 000 sticks
Imported alcoholic beverages and cigarettes pay duties
in prescribed currencies
2019 BUDGET PROPOSALS 3
3
2019 Budget Proposal
4
Tax Facts
Spotlight
on Zimbabwe
Tax Facts 2018 update
Tax Facts 2018 update is a summary of relevant legislation promulgated to 12th of October 2018.
Index
Significant Legislative Changes 6 Export Market Development
Income Tax Expenditure 14
Individuals Deductible Amounts Relating to
Employment Income 7 Indigenization 14
General and Rates of Tax 7 Transfer Pricing 16
Taxable Income from Trade and
Investment 7 Other Direct Taxes
Exemptions 7 Presumptive Taxes 16
Special Concessions for Taxpayers Withholding Taxes 17
Aged 55 and Over 7 Double Taxation Agreements 18
Benefits Arising from Employment 7 Levies (including mining royalties) 19
Tax Credits 9 Capital Gains Tax 20
PAYE 9 Capital Gains Withholding Tax 21
Companies Estate Duty 21
General 10
Rates of Tax 10 Indirect Taxes
Exemptions and Restrictions 10 Value Added Tax (VAT) 21
Provisional Tax (QPD'S) 11 Value Added Withholding Tax 24
Self-Assessment 11 Excise Duty 24
Interest and Penalties 11
Individuals and Companies
Restricted Deductible Expenditure
General 11
Donations 11
Contributions to Pension Funds 13
Capital Allowances
Miners 13
Other Taxpayers 14
Note: This document was compiled by EY as a source of general information and notification and should not be construed as a formal
professional/legal opinion. Although reasonable skill and care is taken when providing information, EY offer no warranties or representations as
to the information’s accuracy. The information provided is not intended to replace the need for an expert/ legal opinion on interpretation,
application and consequences of the relevant legal, technical or regulatory provisions. EY does not accept responsibility for any loss or damage
you or any third party may suffer as a result of utilising the information provided.
5
5
Tax FactsSignificant Legislative Changes
Gazetted 12 October 2018
SI 205 of 2018
Statutory Instrument 205 of 2018, gazetted 12th October 2018,
introduced Finance (Rate and Incidence of Intermediated Money
Transfer Tax) Regulations 2018.
The regulations increased Intermediated Money Transfer Tax to 2% of
the value up to a maximum of $10 000 for transaction of $500 0000
and above.
Transactions of below $10 are not subject to this tax.
The following transactions are not subject to the tax:
1. The transfer of money for the purchase and sale of all marketable
securities;
2. The transfer of money for the purchase or redemption of money
market instruments;
3. The transfer of money on payment of remuneration;
4. The transfer of money to or from Zimbabwe Revenue Authority for
the payment or refund of any tax, duty or other charges;
5. The intra-corporate transfer of money, that is to say, transfer of
money between the treasury account and any trading account held
in the name of the same company;
6. The transfer of money from (but not into) specified trust accounts;
7. The transfer of money into and from nostro foreign currency
accounts; and
8. The transfer of money by Government from the Consolidated
Revenue Fund or from funds established in terms of section 18 of
the Public Finance Management Act.
6
6
Tax FactsIncome Tax annuity payable to an employee under 55 years of
age on cessation of his employment due to
Individuals retrenchment;
Employment Income 7. * The amount received by or accrued to an employee
General participating in an approved employee share
Taxable income from employment is income from a true ownership trust from the sale or redemption by the
or deemed Zimbabwe source not considered to be trust of any shares, units or other interest of the
capital in nature. employee in the trust;
Rates of Tax 8. Medical expenses, medical treatment (including
Year of Segment of Rate of tax Cumulative related travel), invalid appliances and the cost of
assessment monthly within monthly
segment
approved medical aid society contributions paid by
income income tax*
an employer for an employee, his spouse, minor
$ % $
Up to 300 0 children and dependents;
0
01 Jan 2018 301 to 1 500 20 247.20 9. Rewards paid by the Commissioner General for
to 1 501 to 3 000 25 633.45
30 information leading to the recovery of taxation
31 Dec 2018 3 001 to 5 000 1 251.45
5 001 to 10 000 35 3 053.95 revenue;
10 001 to 15 000 40 5 113.95
15 001 to 20 000 45 7 341.45 10. Allowances for accommodation and transport and
Over 20 000 50
grants of quarters or housing for staff of district
*Includes 3 % Aids Levy hospitals or rural clinics owned, operated or
Expatriate employees of a licensed investor in a sponsored by a religious body or a rural district
Special Economic Zone council.
15% of employment income plus 3% Aids Levy. Special Concessions for Taxpayers Aged 55 and
Taxable Income from Trade and Investment Over
This includes business income, rent and Zimbabwean Exemptions from Resident Tax on Interest
and foreign interest other than interest that is specifically - First $3 000 of interest on deposits with financial
Exempt. institutions;
General and Rates of Tax - First $3 000 of income from treasury bills and other
The information provided for companies on pages 5 and discounted instruments traded by financial
6 applies to an individual's Taxable Income from Trade institutions.
and Investment. Exemptions from Income Tax
Exemptions from Employment income - First $3 000 of rental income;
1. Bonus or performance related awards up to $1 000 - Any amount payable by an approved pension fund
in aggregate per annum; (as defined);
2. 50% of the amount waived in respect of tuition and Benefits Arising from Employment
boarding fees and levies payable by a member of General
the teaching and non-teaching staff of a school for The value of a benefit is generally calculated as the
up to three of his children; difference between the amount the employee pays for
3. The greater of the first $10 000 of severance pay the benefit and the cost to the employer of the provided
and one third of severance pay up to $60 000. benefit if higher. In the case of occupation or use of
Ministerial approval is no longer required; quarters, residence or furniture the benefit is based on
4. Lump sum payments from a benefit or pension fund the value to the employee of the benefit enjoyed less
as specified in the First Schedule to the Income Tax the amount paid by the employee.
Act [Chapter 23:06]; Motor vehicles
5. Commutation of up to one third of the pension or The monthly benefit, based on the deemed cost to the
annuity payable by a retirement annuity fund or the employer, is as follows:
whole amount of the commutation of a tax free Engine capacity $
pension or annuity payable by a pension fund, other Up to 1500 cc's 300
than a retirement annuity fund; 1501 to 2000 cc's 400
6. The greater of the first $10,000 and one third of a 2001 to 3000 cc's 600
commutation up to $60,000 of a tax free pension or 3001 cc's and above 800
7
2 Tax Facts8
Tax FactsIncome Tax Individuals (continued)
A benefit arises on the sale or disposal of a motor employee and has nothing to do with the employer.
vehicle to an employee, who is under 55 years of age, Waiver of tuition and boarding fees and levies payable
during or on termination of his employment. by teaching and non-teaching staff of any school
The benefit is the market value of the vehicle at the date The benefit to the employee is the amount waived in
of sale or disposal less the price charged to the respect of any child of the employee who is a student at
employee. any school.
For a vehicle purchased by the employer before 50% of the benefit in respect of the employee's first three
1 January 2009, the market value is the final value of children is exempt from tax.
the vehicle carried forward in the financial statements for Tax Credits
the year in which the new currency system was The following amounts are deductible from taxes payable
introduced. before calculating the Aids levy.
Loan benefits Blind/disabled persons and persons aged over 55
Taxed as a benefit is the shortfall between actual - Monthly $75
interest charged on loans exceeding $100 and interest Medical
calculated at LIBOR plus 5% per annum. - Approved medical aid society contributions 50%
Awards of assets and rights - *Invalid appliances and shortfalls 50%
The market value of an asset or right awarded to an *No credit if the taxpayer is not resident at any time during
employee is a benefit subject to income tax (PAYE) a year of assessment.
upon unconditional accrual. PAYE
The sale to an employee of shares at a price of less Any resident or non-resident employer, who employs one
than market value is a payment of remuneration in kind or more members of staff whose gross pay including
subject to income tax (PAYE). benefits and allowances, exceeds $300 per month or the
The value of the remuneration in kind is the difference daily, weekly or annual equivalent, is required to register
between market value and the purchase price. with the relevant Regional Manager of Zimra, withhold
Shares acquired pursuant to an employee share PAYE from employees and remit PAYE to Zimra by the 10th
option scheme of the month following the deduction.
The sale of shares to an employee pursuant to a share Partnerships, organizations and companies which have a
option scheme is remuneration subject to income tax head office or principal place of business in Zimbabwe are
(PAYE). required to register as employers on behalf of their
*Note: this does not refer to any amount that is exempt branches or divisions.
in terms of Exemption 7 on page 3. Employers are responsible for under deductions as well as
The amount that is taxable is the difference between the late payment of PAYE.
sale value of the shares at the time of exercise of the Personnel employed by a single employer for the full fiscal
share option by the employee and the price at which the period are taxed on the Final Deduction System whereby
shares were offered to the employee, augmented by an PAYE will be a final tax on employment income for the
inflation allowance. employee who will then not be required to complete tax
The amount that accrues to the employee is subject to returns unless they also received taxable income from
PAYE as the share option itself is a perquisite of his trade and investment.
employment. Only personnel employed by more than one employer
If the shares were offered before 1st February 2009 during a fiscal period or employed for part of a fiscal period
pursuant to a share option scheme the employee suffers and all individuals who receive pensions or annuities or
PAYE of 5% of the market value of those shares taxable income from trade and investment are required to
prevailing on the date of the exercise of the option after complete and submit annual tax returns (ITF1).
1st February 2009. Employers are required to submit an annual summary in
Where shares acquired by an employee under a share the form of an ITF16 return by 31 January annually.
option scheme are disposed of by the employee on a The Commissioner is empowered to recover from
date after exercising the option for more than the value employees or non-executive directors the PAYE and tax on
of the shares prevailing on the date of exercising the non-executive directors' fees paid on their behalf by public
option, the difference that is not subject to PAYE, is entities or specified bodies or associations.
subject to Capital Gains Tax in the hands of the
9
Tax Facts
3Income Tax (continued)
Interest and Penalties manufacturing operations conducted in Zimbabwe by
For late submission of employer and employee returns companies who export a specified percentage, by quantity
the Minister is permitted to prescribe a penalty of up to or volume, of their annual manufacturing output*.
$30 per day for the first 181 days from the due date of Specified percentage of manufacturing output exported
submission. 31% to 40% 20%
Penalties of up to 100% of the unpaid tax can be 41% to 50% 17.5%
imposed on the employer. 51% to 100% 15%
Interest is charged at 10% per annum for each month or *Manufacturing output is defined as any process of
part thereof during which the tax and penalties remain production which substantially changes the original
unpaid. form of, or substantially adds value to, the thing or things
Interest on unpaid penalties commences on settlement constituting the product;
of the unpaid tax. Taxable income arising from exported goods and services
of an investor, licensed with a qualifying degree of export
Companies orientation, in a Special Economic Zone declared in terms
of the Special Economic Zones Act [Chapter 14:34]
(Also applies to trade and investment income of
- First 5 years 0%
individuals)
- Thereafter 15%
General
Taxable income from a power generation project licensed in
Taxable is income from a true or deemed Zimbabwe
terms of the Energy Regulatory Authority Act
source not considered to be capital in nature.
- First 5 years 0% or exempt
With effect from January 2017, companies not resident
- Thereafter 15%
in Zimbabwe are liable to local taxes if they carry on
Note: The tax status of the project awaits clarification.
business in Zimbabwe through a permanent
Operations in approved tourist development zones 25%
establishment in Zimbabwe. A comprehensive definition
Pension Funds exempt
similar to the one provided by most treaties has now
*+ 3% Aids levy
been introduced.
Non-residents carrying on business in Zimbabwe are Exemptions & Restrictions
Existing
subject to taxation on all taxable income, wherever
Exemptions
arising, attributable to their permanent establishment in
The receipts and accruals specified in the Third Schedule
Zimbabwe.
to the Income Tax Act [Chapter 23:06].
Definitions of micro, small or medium enterprises or
Restrictions
businesses are based on the definition in Section 2 and
The exemption from income tax of dividends accruing to a
the Fourth and Fifth Schedules to the Small Enterprises
person from a company incorporated in Zimbabwe is
Development Corporation Act {Chapter 24:12}
restricted to exclude deemed dividends arising from
Rates of Tax
*Restricted Tax Deductible Expenditure-General items 2 &
Normal Taxable Income 25%*
3 (on page 6)
Special Rate Income (No Aids Levy unless
New backdated exemptions
specified by*):
From 1 June 2016
BOOT and BOT projects: (Companies and Trusts only)
Premiums paid by the Reserve Bank of Zimbabwe pursuant
- First 5 years 0%
to the Export and Foreign Remittance incentive scheme on
- Second 5 years 15%
receipts of earnings by exporters and on remittances from
- Thereafter 25%*
abroad to Zimbabwe resident individuals via Authorized
Investors in export processing zones licensed before
Dealers in terms of the Exchange Control Act [ Chapter
January 2007 25%
22:05]
Industrial park operators 25%
New exemptions
Foreign company dividends (taxed gross) 20%
From 1 January 2018
Mining
Taxable income of a power generation project licensed in
- Other than Special Mining Lease Operations 25%*
terms of the Energy Regulatory Authority Act [Chapter
- Special Mining Lease Operations 15%*
13:23] for the first five years after 1 January 2018.
Plus Additional Profits Tax for special mining leases only
Thereafter subject to taxation at the specified rate of 15%.
Taxable income arising from exported output of
Note: The tax status of the project awaits clarification.
10
4 Tax FactsIncome Tax Companies (continued)
Provisional Tax (QPD’s) year of assessment to which the goods services or
Percentages of the estimated income tax due on benefits relate.
business and investment income for each year is 2. * Expenditure administration and management incurred
payable as follows: in favor of any company or local branch of a foreign
25 March 10% company of which the taxpayer is an associated
25 June 25% enterprise. The excess expenditure over 1% of the total
25 September 30% other tax deductible expenditure is disallowed and
20 December 35% where the recipient of the service is non-resident is
100% taxed as a deemed dividend.*
Taxpayers are required to submit a cumulative (ITF12B) *The deemed dividend is subject to Resident or Non-
return on each payment date. Resident Shareholders Tax payable by the company
Interest is charged at the rate of 10% per annum for deemed to have paid the dividend (refer Withholding
each month or part thereof during which the tax in Tax page 10)
excess of 10% of the annual liability remains unpaid. 3. *Thin capitalization – expenditure servicing debt in
The Commissioner is empowered to reduce or waive excess of three times equity - is disallowed and taxed
any interest payable in specified circumstances as a deemed dividend.*
including interest on shortfalls resulting from an *The deemed dividend is subject to Resident or Non-
underestimate of up to 10% of the amount due. Resident Shareholders Tax payable by the company
On application an SME may voluntarily register as a deemed to have paid the dividend (refer Withholding
taxpayer and only account for provisional tax in advance Tax page 10).
on business income on a monthly basis. Equity is defined as issued and paid up capital,
Self-Assessment unappropriated profits, unrealised and realised
All taxpayers, other than individuals in receipt of reserves, and interest free loans from shareholders.
employment income only, are required to register, Excluded from this disallowance is
calculate the tax due or refundable and electronically - The cost of servicing debt due by a local company
submit a Self- Assessment Return (ITF12C) to Zimra from locally domiciled, registered or incorporated
before 30 April of the year following the end of the year financial institutions or any ordinarily resident person
of assessment. where the contracting parties are not associated
Interest and Penalties with each other and have not colluded for the
Penalties of up to 100% of the additional tax payable purpose of avoiding the disallowance.
can be imposed for offences arising from default or - The cost of servicing debt arising from borrowings
omission of income. These can be increased, for second advanced as loans for the benefit of the State as
offences, to 200% of the additional tax payable. certified by the Minister of Finance and Economic
Interest on unpaid taxes and penalties is charged at Development.
10% per annum for each month or part thereof during 4. Costs of attending trade conventions and missions
which the tax and penalties remain unpaid. restricted to $2 500 per annum;
Interest on unpaid penalties commences on settlement 5. Cumulative cost of leasing a passenger motor vehicle
of the unpaid tax. restricted to $10 000;
For late submission of ITF12C returns the Minister is 6. Voluntary annuity to retired former employees, other
permitted to prescribe a civil penalty of up to $30 per than domestic workers, restricted to $500 per annum
day for the first 181 days from the due date of per employee and further reduced by pensions paid to
submission. them from the employer's pension fund.
Donations
Individuals and companies Deductibility is restricted on donations to:
- a hospital operated by the State, a local authority or
Restricted Tax Deductible Expenditure
religious organization for expenditure, approved by the
General
Minister responsible for health, on the purchase of
1. With effect from 1 January 2018 expenditure or
medical equipment, procurement of drugs, the
losses incurred on goods, services or benefits that
construction of extensions and maintenance.
will be used or relate to any subsequent year of
Restricted to $100 000 p.a.
assessment will be deductible proportionately in the
11
Tax Facts 512
Tax FactsRestricted Tax Deductible Expenditure (continued)
- a research institution approved by the Minister Allowances and deductions in respect of capital
responsible for higher and tertiary education. expenditure and losses resulting therefrom are ring
Restricted to $100 000 p.a. fenced and only claimable against mining income from
- a school operated by the State, Local Authority or two or more locations to which they relate that are
religious organization for expenditure, approved by inseparable or substantially inter dependent.
the Minister responsible for education, on the Capital Redemption Allowance
purchase of education equipment, the procurement Capital Expenditure Allowance based on cost from
the date of commencement of
of books or other educational material, the production and the annual cost
thereafter
construction of extensions and maintenance.
Special Mining Other mining
Restricted to $100 000 p.a. Lease Operators operators
(SML) %
- a Local Authority for infrastructural development
%
approved by the Minister responsible for Local Exploration costs 100 100
Government. Development costs 25 100
Restricted to $50 000 p.a. Restricted costs per unit
School, hospital, nursing
- the Public Private Partnership Fund. home or clinic *$150 000 $50 000
*(SML restriction increased
Restricted to $50 000 p.a. from $10 000 from
- the Destitute Homeless Persons Rehabilitation Fund. 1 January 2018)
Restricted to $50 000 p.a. Staff housing - school,
hospital, nursing home or
Note: Deductibility from employment or business clinic $10 000 $50 000
income is unrestricted for donations to The National - other* *$25 000 No restriction
(SML restriction increased
Scholarship Fund, The National Bursary Fund and from $10 000 from
1 January 2018)
charitable trusts or welfare organizations administered Passenger motor vehicles $10 000 $10 000
by the Ministers responsible for social welfare or health.
Contributions to Pension Funds The options relating to the claiming of capital
Maximum annual deduction for contributions to allowances can be summarized as follows:
approved Pension and retirement annuity funds (RAF). - 100% of the expenditure incurred in the year of
Members assessment - allowed in all cases (restricted to 25%
Pension funds and RAF's per annum for special mining lease operators); or
Lower of: 7.5% of annual emoluments and $5 400 - the total cost of capital expenditure spread over the
Employers estimated remaining life of the mine in annual (but
Maximum per employee $5 400 not necessarily equal) instalments - allowed to mine
Employers' lump sum contributions to a pension fund owners and companies tributing a mine; or
are tax deductible provided the claim is supported by an - a fair and reasonable sum as determined by the
actuarial certificate and a certificate from the Minister of Commissioner - allowed to a company or any other
Finance and Economic Development confirming that the person that does not own the mine;
contribution will result in the fair distribution of increased - the total capital expenditure incurred to the date
pensions or benefits to past or present members of the production commences is allowed in the year that it
pension fund without discrimination or prejudice to any commences for all new mines;
class of person. - allowances and deductions in respect of exploration
Capital allowances expenditure incurred before the commencement of
Miners mining operations is restricted to six years.
In lieu of special initial, wear and tear and investment Taxpayers can elect to carry forward the exploration
allowances taxpayers who carry out mining operations expenditure and claim it once mining operations
are entitled to a capital redemption allowance in respect commence;
of capital expenditure on exploration and development - recoupments are taxable on the disposal of mining
operations which include buildings, motor vehicles, assets referred to above and are not restricted to
works and equipment, shaft sinking, expenditure on allowances claimed.
preliminary development, surveys, boreholes,
administration and loan financing during non productive
periods.
13
Tax FactsCapital Allowances (continued)
Other mining matters - Advertising goods or otherwise securing publicity
- Income tax losses from mining operations can be outside Zimbabwe;
carried forward indefinitely; - Soliciting business and participating in trade fairs
- Legislated royalties paid by miners are no longer outside Zimbabwe;
specified deductions. - Investigating or preparing information, designs,
Other tax payers estimates or other material for the purpose of
submitting tenders for the sale or supply of goods
Capital Expenditure Special Initial * Wear & Tear*
% cost % cost outside Zimbabwe;
Commercial Buildings - 2.5 - Bringing prospective buyers to Zimbabwe;
Industrial Buildings 25 5
- Providing samples of goods to persons.
Farm Improvements 25 5
Cost incurred on Schools, “Goods” is defined as anything that has in Zimbabwe,
Hospitals ,Nursing Homes or
Clinics and related staff housing been manufactured, produced, grown, assembled,
restricted to $10 000 per
building bottled, canned, packed, graded, processed or
No restriction on other
improvements. otherwise dealt with in such a manner as the
Staff Housing 25 5
Cost incurred restricted to Commissioner General may approve.
$25 000 per unit within a
building.
The cost of the entire building is Deductible amounts relating to the provision of
disqualified by any expenditure
in excess of the specified limit
technical advice to groups of out grower
Tobacco Barns 25 5
Railway Lines 25 5 farmers or small or medium enterprises by
Articles, Implement etc. 25 10 to 33.3**
Anchor Companies
Includes tangible and intangible
computer software acquired, An additional 50% is allowed as a deduction for
developed and used by a
taxpayer. expenditure as, specified in regulations by the Minister,
No special initial allowance is incurred by an Anchor Company related to agronomic
claimable on 50% of the cost of
any fiscalised electronic register advice and marketing services and inputs the company
which qualified as a deduction
from VAT output tax payable. contractually provided to a group of out grower farmers
or small or medium enterprises in return for delivering
Motor Vehicles: 20**
- passenger 25
produce to or on behalf of the Anchor Company.
cost limited to $10 000 per
vehicle An additional 50% of the expenditure is allowed as a
- all other vehicles 25 20 to 33.3**
*Claimable by election in the year in which the assets are first
deduction from his taxable income.
brought into use and 25% claimable in each of the three
subsequent years
SIA for Licensed investors in Special Economic Zones and Small Deductible Amounts Relating to Indigenization
and Medium Enterprises (SME's) is 50% in the first year and
25% in each of the two subsequent years. The following amounts relating to indigenization in
For definition of SME refer page 5, Income Tax - Companies - compliance with the Indigenization and Economic
General
Wear & Tear claimed where no SIA election made. Empowerment Act [Chapter 14:33 ] are deductible:
**Reducing Balance - Contributions or donations during a year of
assessment to an approved community share
Export Market Development ownership trust or scheme established by the
taxpayer;
Expenditure - Deductible in equal annual instalments over the
An additional 100% of export market development period of the loan is the value of a loan to buy
expenditure is allowed as a tax deduction. To qualify shares by a corporate taxpayer to an aspirant
expenditure must not be of a capital nature and must be shareholder (Vendor Financed Loan) repayable by
wholly or exclusively incurred in seeking opportunities means of dividends foregone by the taxpayer on
toexport goods from Zimbabwe or in creating or those shares; and
increasing demand for exports. - Interest payable in a year of assessment by an
Such expenditure includes: indigenization partner on any loan advanced to
- Research into or obtaining information relating to purchase shares in the company of which he or she
external markets; is an indigenous partner.
- Research into the packing or presentation of goods
for sale outside Zimbabwe;
7
14
Tax Facts15 Tax Facts
Transfer Pricing Other Direct Taxes
Transfer pricing legislation endorses the arm's length
Presumptive Taxes
principle and imposes documentary obligations on
General
taxpayers.
Presumptive tax is payable by informal traders, operators
The legislation covers transactions between all
of taxicabs, omnibuses, goods vehicles, driving schools,
connected persons; applying to both domestic and
licensed and unlicensed bottle stores and restaurants,
international Transactions. These new provisions are
hairdressing salons, cottage industries, commercial
aligned with transfer pricing principles developed by the
waterborne vessels and fishing rigs.
Organization for Economic Cooperation and
Interest is charged at 10% per annum per month or part
Development (OECD); therefore the law recognizes
Thereof during which the tax remains unpaid.
OECD manuals on the subject as relevant sources
Rates of Tax
of interpretation.
Informal traders
These new rules enable Zimra to adjust transactions
(Defined as non-filing cross- border traders whose gross
which are concluded on terms inconsistent with the
annual Income does not exceed $6 000).
arm's length principle.
Cross border traders
Such adjustments have the potential to create additional
10% of the value for duty purposes of the commercial
tax liabilities for the parties involved.
goods imported.
The new legislation accepts the following 5 methods as
Payable at the port of importation.
a basis of determining the comparable arm's length
Other traders
price for a transaction:
10% of the rent paid to a local authority for residential
- Comparable Uncontrolled Price Method
property or 10 % of the rent paid to any person in respect
- Resale Price Method
of the premises from which the trade is carried out.
- Cost plus Method
Recovered by the lessor and payable to Zimra within 30
- Transactional Net Margin Method
days of collection.
- Transactional Profit Split Method
A 100% penalty is imposed on unpaid tax.
Any other method will be accepted by the Commissioner
Monthly rate of tax
General under circumstances where the approved
($)
methods (listed above) do not create a reliable
Operators of taxi cabs and omnibuses
comparable figure and the alternative method does.
Carrying capacity
Taxpayers are not required to apply more than one of
Under 7 25 per vehicle
the approved methods when determining the arm's
8 to 14 40 per vehicle
length price on a given transaction. The Commissioner
15 to 24 45 per vehicle
is restricted to the method chosen by the taxpayer,
25 to 36 70 per vehicle
provided the taxpayer has satisfied the requirements of
Over 36 100 per vehicle
the law.
Operators of goods vehicles
The law establishes the concept of the arm's length
Carrying capacity
range, this being an acceptable range of prices, margins
10 to 20 tonnes (without trailers) 200 per vehicle
or profit shares that have been reached after the
10 to 15 tonnes (including trailers) 500 per vehicle
application of one of the approved transfer pricing
Over 20 tonnes 500 per vehicle
methods to a number of uncontrolled transactions.
Operators of driving schools
Under this law, taxpayers who engage in transactions
Tuition classes
with associates must generate and maintain relevant
Class 4 vehicles only 100 per unit
transfer pricing documentation. Although it is not
Class 1&2 vehicles alone or together
mandatory for the documentation to be submitted, it is in
with other classes 130 per unit
the taxpayers’ best interest to keep relevant and
Operators of hairdressing salons 10 per chair
appropriate documentation.
Operators of licensed and unlicensed
The new law recognizes the potential of double taxation
bottle stores and restaurants 70 per unit
which may occur as a result of Zimra adjustments hence
Operators of cottage industries 70 per unit
the law facilitates corresponding adjustments for both
domestic and International transactions where
necessary.
16
Tax Facts
8Presumptive Taxes (continued)
Monthly rate of tax However the period of 24 months commences from
($) 1February 2009 where the payer failed to recover the
Operators of commercial waterborne vessels tax from the payee prior to that date.
Carrying capacity (including cabin crew) The penalty and the interest on the overdue payment are
Less than 6 60 per vessel not recoverable or tax deductible.
6 to 15 100 per vessel The rate of tax to be withheld from payments to non
16 to 25 200 per vessel resident artistes or entertainers contracted to perform in
26 to 49 350 per vessel Zimbabwe. 15%
Over 49 450 per vessel Both taxes withheld can be offset against assessed income
Operators of fishing rigs 80 per vessel tax payable for the relevant year of assessment.
Any excess is refundable on assessment
Monthly taxes supported by Rev 5 returns are payable Note: Licensed investors in Special Economic Zones are
by the operator to Zimra within 10 days of the end of the exempt from both of these taxes.
month. Resident and Non-Resident Shareholders' Tax
For late submission of returns the Minister is permitted Withheld from dividends paid to individuals, partnerships
to prescribe a penalty of up to $30 per day for the first and non resident companies:
181 days from the due date of submission. - Quoted companies 10%
- All other companies 15%
Withholding Taxes The rate of tax for non-residents can be reduced in
Contract Payments (ITF263) accordance with a double taxation treaty.
Amount to be withheld from payments to residents or Resident Shareholders' Tax is payable within 10 days of
non residents relating to obligations to provide goods or the payee being paid or becoming entitled to the dividend.
services during a year of assessment in terms of a Non-Resident Shareholders' Tax is payable within 30 days
single contract with an aggregate value of $1 000 or of the earlier date of the distribution of the dividend or the
more unless a valid clearance certificate (ITF263) is shareholder becoming entitled to the dividend.
provided by the payee. 10% Note: Licensed investors in Special Economic Zones are
Exempt from this tax are payments: exempt from both shareholder taxes.
- Of delictual claims to the State or a statutory Deemed dividends resulting from thin capitalization and
corporation expenditure on fees, administration and management
- In terms of employment contracts (Refer to page 6 Restricted Tax Deductible Expenditure
- In terms of a sale to a shop or consumer contract items 2 & 3) are subject to Resident or Non- Resident
(unrelated to immovable property) where the seller Shareholders Tax payable on self-assessment by the
or supplier is dealing in the ordinary course of company deemed to have paid the dividend.
business and the purchaser or user is not. Resident Tax on Interest
- By auctioneers and contractors to or on behalf of Withheld from interest paid by banks, building societies,
growers for the purchase of auction floor or contract the Reserve Bank and other financial institutions (including
tobacco in terms of contractual arrangements with a unit trust managers, asset managers and collective
contractor in which the contractor provides or investment schemes) on loans and deposits and income
finances the purchase of inputs for the benefit of the from Treasury Bills, Bankers Acceptances and instruments
grower in return for the grower selling his or her traded by financial institutions.
tobacco to the contractor. - Interest on fixed term deposits for at least 90 days 5%
Withholding tax on contract payments is payable before - Other interest and income 15%
the 10th day of the month following that in which the This is a final tax on the gross income that is exempt from
payment is made. income tax.
From 1 February 2009 the payer is entitled to recover Interest on deposits with a tenure of more than 12 months
from then payee the principal amount of the tax that he payable by financial institutions is exempt from both
Resident Tax on Interest and Income Tax.
failed to withhold and pay to Zimra within 24 months
(Refer to page 3 for Special Concessions for Taxpayers
from the date the payment should have been withheld
Aged 55 and over).
and paid to Zimra.
9 17
Tax FactsWithholding Taxes (continued)
Property and Insurance Commission 20% The effect of DTA's in force is to override tax legislation in
Withheld from commission paid to resident and non both the countries concerned.
resident freelance agents who are not registered as DTA's are complex and various terms and conditions are
employees. This income qualifies as business income imposed before benefits, preferences, exemptions and
and tax withheld is deductible from income tax concessions extended by each treaty can be claimed.
chargeable on business income that includes the If a resident of either country is taxed in both countries on
Commission. the same income, in specified circumstances, the following
Non-Executive Directors Fees 20% concessionary withholding tax rates could be applied.
Withheld from payments to resident and non-resident Country of Non-Resident Non-Resident Non-
Non-executive directors who are not subject to PAYE. residence Shareholders Tax on Fees Resident
Tax (excluding Tax on
This income is exempt from Non-Resident Tax on fees, (refer note below) directors fees) Royalties
qualifies as business income and tax withheld is NRST NRTF NRTRoy
deductible from income tax chargeable on business Normal Reduced
% % % %
income that includes the fees. Botswana 10 5 10 10
Non-Resident Tax on Technical, Consultancy,
Bulgaria 15 10 10 10
Administrative and Managerial Fees for Qualifying
Canada 15 10 10 10
Services and Royalties 15%
China 7.5 2.5 N/A 7.5
The withholding tax is a final tax unless the fees or Congo* 15 N/A N/A N/A
royalties are subject to income tax when the withholding France 15 10 10 10
tax is applied to reduce the income tax liability. There is
Germany 15 10 7.5 7.5
no refund where the withholding tax exceeds the income
Iran* 15 5 5 5
tax liability. The rate of tax can be reduced in Kuwait* 10 0-5 N/A 10
accordance with a double taxation treaty. Malaysia 15 10 10 10
Foreign agents' fees for export marketing services that Mauritius 15 10 15
N/A
do not exceed 5% of the “free on board value” of the Namibia* 10 5 10
N/A
exported goods are exempt from this tax. The Netherlands 15 10 10 10
exemption is subject to confirmation of acquittal of the
Norway 15 15 10 10
CD1 forms for the exported goods.
Poland 15 10 10 10
Note: Non-executive directors and licensed investors in South Africa 10 5 5 10
Special Economic Zones are exempt from these taxes.
Sweden 15 15 10 10
Non-Resident Tax on Remittances by a branch to a United Kingdom 15 5 10 10
Foreign Head Office 15%
Payment, penalties and interest * Date of entry into force not yet gazetted.
Unless specified above all other withholding taxes are Note on concessionary normal and reduced NRST
payable to the Commissioner General within 10 days of rates
the payee being paid or becoming entitled to the Concessionary DTA rates do not differentiate between
dividends from listed and unlisted companies. These are
payment of interest, fees, commission, royalty or
subject to local statutory rates of 10% and 15%
remittance.
respectively.
Penalties of up to 100 % of the unpaid tax can be
Normal and reduced concessionary rates quoted above are
imposed.
the effective concessionary treaty rates based on the local
Interest is charged at 10% per annum for each month or
statutory unlisted rate or the effective concessionary treaty
part thereof during which the tax and penalties remain
rate where the statutory rate is lower than the normal or
unpaid.
reduced rate.
Interest on unpaid penalties commences on settlement
For listed shares the reduced statutory rate of 10% is
of the unpaid tax.
substituted for the recorded reduced rate where the former
exceeds the recorded rate.
Double Taxation Agreements (DTA's)
For France and Malaysia the reduced rate is only available
The date of entry into force has not been gazetted for
where the recipient holds directly at least 15% of the capital
DTA's with Congo, Iran, Kuwait and Namibia.
of the company paying the dividends.
DTA's with Tunisia, Indonesia, Seychelles, Tanzania and
For Iran there is no restriction.
Zambia are awaiting ratification.
Negotiations with Jamaica are still in progress.
10
18
Tax FactsDouble Taxation Agreements (continued)
For Kuwait National Social Security Authority
- the rate is reduced from 10% to 0% where the Monthly contribution of 3.5% payable by both the employer
recipient is a government of a contracting state or and employee based on the first $700 of basic earnings of
any political subdivision or local authority thereof, a each employee who is a citizen of or ordinarily resident in
governmental institution created in the public law of Zimbabwe (except State employees and domestic
a contracting state or an entity established in a workers).
contracting state all the capital of which has been Payable to NSSA by the 10th of the following month.
provided by the contracting state. Standards Development Fund Levy 0.5%
- the rate is reduced from 10% to 5% where the Payable by employers to The Standards Development
recipient is a company beneficially owning at least Fund quarterly by the 15th of the month following the
25% of the company distributing the dividend. quarter's end.
For other countries the reduced rate for NRST is only Financial levies
available where the recipient is a company beneficially Automated Financial Transactions Tax
owning at least 25% of the company distributing the Per transaction $0.05
dividend. With effect from 14 March only transactions that exceed
$10 are subject to this tax.
Levies (including mining royalties) The tax is payable to Zimra by the financial institution by
Agricultural levies the 10th of the month following the date of the transaction.
Livestock Development Levy Intermediated Money Transfer Tax
From 13 October 2017 Per transaction $0.05
1 cent payable by the hatchery for each day old chick With effect from 14 March 2018 only transactions that
produced. exceed $10 are subject to this tax.
1 cent payable by the buyer for each litre of raw milk With effect from the 13 October 2018 the rate of tax is
purchased. increased to 5% of the value of each transaction with
$10 payable by the abattoir for the fifth quarter of each certain exemptions as specified under SI 205 of 2018 on
head of beef cattle slaughtered. page 2.
The levies are payable to the Agricultural Marketing The tax, which can be recovered from the transferee or
Fund by producers of day old chicks, buyers of raw milk transferor, is payable to Zimra by a financial institution or a
and abattoirs slaughtering of beef cattle and are due no provider of mobile banking services by the 10th of the
later than the seventh day of the month following the month following the date of the transaction.
month to which the levies relate. Insurance and Pension's Commission Levies
Interest or surcharge imposed by the Agricultural The levies have not been increased since 12 February
Marketing authority and any offences liable to a $300 2016.
fine or imprisonment for a period not exceeding 6 Details available on request.
months or both. With effect from 23 March 2018 a levy was introduced for
Tobacco Levy micro insurance companies.
Withheld by auctioneers from payments to the buyers Securities and Exchange Commission Levies
and sellers of auction tobacco and by the contractor Recovered by debt and other securities dealers and
from payments to the growers of contract tobacco based payable to the Securities and Exchange Commission
on the total amount payable under the agreement of weekly by close of business based on a percentage of their
sale or contract. weekly values of purchase, sales and exchanges of debt
Levy on purchase and sale of auction tobacco and listed marketable securities.
recovered from growers and buyers 1.50% Levied on Investors
Levy on sale of contract tobacco recovered from Platform levy
growers only 0.75% Stock Exchange 0.10%
Payable to Zimra by the auctioneer or contractor within Securities Exchange 0.012%
the prescribed period. Depository Levy
Employment levies Debt securities 0.01%
(Levies based on the total monthly direct cost of Other securities 0.10%
employment excluding levies) Investor Protection Levy
Manpower Planning and Development Levy 1% Debt securities 0.003%
Payable by employers to the Manpower Development Other securities 0.25% 19
Training Authority by the 15th of the following month. Tax FactsLevies (continued)
Securities and Exchange Commission levy Capital Gains Tax (CGT)
Debt securities 0.01%
General
Other securities 0.16%
Capital Gains Tax arises on disposal of specified assets.
Levied on Service providers
Specified assets comprise listed and unlisted marketable
Payable to the Securities and Exchange Commission
securities, immovable property, rights or title to residential,
monthly by the tenth day of the following month based
commercial or industrial stands, membership interests in
on a percentage of their monthly gross income.
condominiums and tangible or intangible property requiring
Registered Central Securities Depository levy 0.5%
registration in terms of Mines and Minerals Act [Chapter
Licensed Securities (Custody) Company levy 0.5%
21:05], Patents Act [Chapter26:03], Trade Marks Act
Licensed Securities (Transfer) Company levy 0.35%
[Chapter 26:04], Industrial Designs Act { Chapter 26:02],
Stamp Duty
Copyright and Neighboring Rights [ Chapter 26:05], Brands
Cheques
Act [Chapter 19:05], Geographical Indications Act
Per cheque $0.05
[Chapter26:06], Integrated Circuit Layout Designs Act
Broker's purchase notes
[Chapter 26:07] Act (No.18 of 2001 ).
Percentage of purchase consideration 0.25%
With regard to rights and membership interests the whole
Other stamp and transfer duties are imposed on
amount received or accruing to a transferor as a result of
insurance policies, registration of bonds and deeds
the relinquishment of a membership interest in a
relating to the acquisition of immovable property.
condominium or the transfer of rights in a serviced or
Details available on request.
unserviced residential, commercial or industrial stand, with
Mining Royalties
or without registration of title, is deemed to be a disposal of
Payable to ZIMRA before the 10th day of the month
a specified asset.
following the month the proceeds from which the
Exemptions and Concessions
royalties were deducted are received.
Existing exemptions
Based on the gross fair market value of the mineral
Exemptions specified in Section 10 of the Capital Gains
produced
Tax Act [Chapter 23:01]
%
Note: Capital Gains Withholding Tax paid relating to an
Diamonds (other than sales to local diamond
exempt gain is refundable.
manufacturer at a discount equivalent to the value
Concessions
of the royalty) 15
For persons over 55 years old
Other precious stones 10
- disposal of Principal Private Residence
Gold
- first $1 800 of gains on disposal of listed and unlisted
- small scale miners 1
shares.
- other miners whose value of annual output has
Rates of Tax
not increased over that for the previous year of
Disposals of specified assets purchased before
assessment 5
1 February 2009 5%
A reduced rate is applied to the increase in value of
(Based on the gross sale proceeds or the amount of
output over that for the previous year of assessment 3
Capital Gains Withholding Tax withheld whichever is
Any refund due will be offset against the royalty
the greater.)
payable for the following year of assessment.
Disposals of specified assets (excluding listed
Platinum 2.5
marketable securities) purchased after
Precious metals 4
1 February 2009 20%
Chrome 5
(Based on the capital gain after deduction of an inflationary
Other base metals 2
Allowance of 2.5% per annum on cost from the date of
Industrial metals 2
acquisition to the date of disposal.)
Coalbed methane 2
Listed marketable securities 1%
Coal 1
(Based on the gross sale proceeds.)
Regardless of the date of purchase the Capital Gains
Tax withheld on disposal becomes a final tax.
20 12
Tax FactsCapital Gains Tax (continued)
Payable was made against the purchase price.
Tax, supported by a CGT1 return is payable within 30 Interest and Penalties
days from the date of Penalties of up to 15 % of the unpaid tax due can be
- disposal under suspensive conditions imposed.
- transfer of title Interest accrues from 30 days after the tax becomes due
- assessment, and is charged at 10% per annum for each month or part
or thereof during which the tax and penalties remain unpaid.
before the third working day from the date of the first Interest on unpaid penalties commences on settlement of
payment against the purchase price whichever is the the unpaid tax.
earlier date. Clearance certificate
Interest and Penalties The following can only be registered or recorded once a
Penalties of up to 100% of the unpaid tax due can be capital gains tax clearance certificate has been issued by
imposed. Zimra:
Interest accrues from 30 days after the tax becomes due Transfer of immovable property.
and is charged at 10% per annum for each month or Cessions of subdivisions of land acquired from a land
part thereof during which the tax and penalties remain developer.
unpaid. Rights of occupation or timesharing interest in a property
Interest on unpaid penalties commences on settlement held under sectional title.
of the unpaid tax. Transfers of tangible or intangible property require
For late submission of the CGT1 return the Minister is registration in terms of specific legislation.
permitted to prescribe civil penalties of up to $30 per Transfers of unlisted shares where no depositary is
day for the first 181 days from the due date of involved.
submission. Subdivisions of land acquired from a land developer or his
cessionary.
Capital Gains Withholding Tax Transfer of rights of occupation or a timesharing interest in
a property held under sectional title.
General
Withheld from funds held by a depositary on behalf of a
party to a sale of specified assets on behalf of the seller. Estate Duty
Depositaries include registration officials, conveyancers, The family home, one family vehicle and the first $50 000
legal practitioners, estate agents, building societies, of the remaining value of an estate is duty free, thereafter
stockbrokers, financial institutions and any duty is charged at the rate of 5%
representative of parties to a sale of specified assets.
Cedents of land originating from a land development
Indirect Taxes
scheme and any person who mediates an acquisition
or relinquishment of membership interest in a Value Added Tax (VAT)
condominium qualifies as a depository and is required to General
withhold Capital Gains Withholding Tax and issue VAT registered operators whose annual value of taxable
certificates to obtain tax clearance before registration of supplies is at least $240 000 are required to record their
the cession or relinquishment of membership. transactions through electronic registers or electronic
Rates of Tax signature devices.
Based on the gross sale proceeds of: This requirement has been extended to all businesses.
Specified assets purchased before 1 February 2009 Zimra is providing electronic registers to small businesses
- listed marketable securities 1% free of charge.
- other 5% Electronic registers are to be capable of issuing credits and
Specified assets purchased after 1 February 2009 debit notes, providing detailed transactional information on
- listed marketable securities 1% invoices and interfacing with the Zimra server.
- unlisted marketable securities 5%
- immovable property 15%
Payable
Before the third working day from the date a payment
21
Tax Facts 13You can also read
