Taxes

The various tax and customs incentives are administered by the Zimbabwe Revenue Authority. The various tax rates applicable in Zimbabwe are as below:

  Finance Act Tax Rate
 .
Income of individual from trade and investments 14(2b) 25%
     
Income of company or trust 14(2c)  25%
     
Income of pension fund from trade or investment 14(2)d 15%
 
Income of licensed investor during first five years of operation 14(2) e 0%
   
Income of licensed investor after first five years of operation 14(2) e 25%
 
Income of a holder of special mining lease 14(2)(f) 15%
   
Income of a company or trust derived from mining operations 14(2) g 25%
   
Income for a  person engaged in approved BOOT or BOT arrangement: First 5 years 14(2) h 0%
   
Income f person engaged in approved BOOT or BOT arrangement: Second 5 years 14(2) h 15%
   
Income of industrial park developer before 5th year of operations 14(2) i 0%
   
Income of industrial park developer after 5th year of operations 14(2) i 25%
   
Income of operator of a tourist facility in approved tourist development zone before the fifth year of operation 14(2) j 0%
   
Income of operator of a tourist facility in approved tourist development zone before the fifth year of operation 14(2) j 0%
   
Income of operator of a tourist facility in approved tourist development zone after the fifth year of operation 14(2) j 25%
   

Income from manufacturing of a company which exports :

  • more than 30% or more of its output but less than 41%,
  • more than 41% or more of its output but less than 51%
  • more than 51% or more of its output




14(3)(a)
14(3)(b)
14(3)(c)




20%
17.5%
15%

   
Aids Levy: Rate is based on tax chargeable   3%
   
Dividends from company incorporated outside Zimbabwe 14(5) 20%
Source: ZIMRA Website

 

Capital Gains Tax

Capital Gains Tax (CGT) is a tax levied on the capital gain arising from the disposal of a specified asset. Specified asset means immovable property (e.g. land and buildings) and any marketable security (e.g. debentures, shares, unit trusts, bonds and stock). The rate of tax for capital gains tax is 20%. For more details please refer to Zimra website.


Value Added Tax

Value Added Tax (VAT) is another tax levied on imported goods and services in terms of the Value Added Tax Act [Chapter 23:12]. VAT is an indirect tax charged on the supply of goods and services in Zimbabwe. For more details please refer to Zimra website.

  • Registered operators may claim Value Added Tax (VAT) refunds if the output tax is less than the input tax in any tax period.
  • VAT is normally payable on importation of goods or removal of goods from Bond. VAT may be deferred in certain instances as follows:
  • Deferment of VAT is an officially sanctioned temporary postponement of paying VAT on importation of specified goods of a capital nature and medical equipment. The goods should have been imported for own use by the importer.
  • The deferment is for a period not exceeding 90 days from the date of the deemed importation
  • It is granted on application to the Commissioner


Surtax

Surtax is also payable on goods that attract at least 40% as Customs Duty and where specific or combination rates of duty are applied. This tax is ordinarily charged at a rate of 15% ad valorem. For more details please refer to Zimra website.


Presumptive Tax

This is tax charged on selected sectors of the economy such:

  • Informal traders
  • Operators of taxi cabs
  • Operators of omnibuses
  • Operators of driving schools
  • Operators of hairdressing salons
  • Operators of restaurants or bottle stores
  • Operators of cottage industry  
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Zimbabwe Investment Authority

Get in touch

icon info@zia.co.zw
icon +263 4 757931-6, +263 4 759911-5
+263 4 780140-5
icon Investment House 109, Rotten Row
P.O. Box 5950 Harare

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