Taxation – Zimbabwe (TX – ZWE)
Tax Tables
TAX RATES AND ALLOWANCES
The following tax rates and allowances are to be used when answering the questions.
Tax rates – Individuals employment income
Year ended 31 December 2023
Taxable Rate Amount Cumulative income
income band of tax within band tax liability
Z$ % Z$ Z$
0 to 2,500,000 0 2,500,000 0
2,500,001 to 7,500,000 20 5,000,000 1,000,000
7,500,001 to 25,000,000 25 17,500,000 5,375,000
25,000,001 to 50,000,000 30 25,000,000 12,875,000
50,000,001 to 75,000,000 35 25,000,000 21,625,000
75,000,001 and over 40
US$ % US$ US$
0 to 1,200 0 1,200 0
11,201 to 3,600 20 2,400 480
13,601 to 12,000 25 8,400 2,580
12,001 to 24,000 30 12,000 6,180
24,001 to 36,000 35 12,000 10,380
36,001 and over 40
NB. The AIDS levy of 3% is chargeable on income tax payable, after deducting credits.
The Z$ tax rates are for the 5 months period from 1 August 2023 to 31 December 2023.
These are assumed to be applicable for the year ended 31 December 2023.
Allowable deductions for the year ended 31 December 2023
Pension fund contribution ceilings
Z$
(a) In relation to employers: in respect of each member 1,500,000
(b) In relation to employees: by each member of a pension fund 1,500,000
(c) In relation to each contributor to a retirement annuity fund/funds 1,200,000
(d) National Social Security contributions (on a monthly 4·5% of insurable
prescribed insurable earnings) earnings
Aggregate maximum deductible contributions to all the above per
employee/contributor per year Z$1,500,000
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Individual tax credits for the year ended 31 December 2023
Z$ US$
Disabled/blind person 450,000* 900*
Elderly person (55 years and over) 450,000* 900*
Medical aid society contributions 50% 50%
Medical expenses 50% 50%
*The amount is reduced proportionately if the period of assessment is less than a full tax year.
Corporate tax credits for the year ended 31 December 2023
Z$ US$
Youth employment and physically disabled persons
(Z$25,000 per additional employee per month)
Aggregate maximum amount for all additional employees
per year 1,120,000
Youth employment and physically disabled persons
(US$50 per additional employee per month or Z$
equivalent at prevailing exchange rate)
Aggregate maximum amount for all additional employees
per year 2,250
Deemed benefits for the year ended 31 December 2023
Motor vehicles
Engine capacity: Z$ US$
Up to 1500cc 312,500 675
1501 to 2000cc 415,000 900
2001 to 3000cc 625,000 1,350
3001cc and above 830,000 9,800
The amounts are reduced proportionately where the period of assessment is less than a full tax
year.
Loans
The deemed benefit per annum is calculated at a rate of LIBOR + 5% of the loan amount
advanced.
Value added tax (VAT)
Standard rate 15%
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Capital allowances
%
Special initial allowance (SIA) 25
Accelerated wear and tear 25
Wear and tear:
Industrial buildings 5
Farm buildings 5
Commercial buildings 2·5
Motor vehicles 20
Movable assets in general 10
Tax rates – Other than employment income
Year ended 31 December 2023
Companies %
Income tax: Basic rate 24
AIDS levy 3
Individuals %
Income tax: Income from trade or investment 24
AIDS levy 3
BOOT/BOT operators and licensed investors %
Income tax: Basic rate – (0–5 years) 0
(5–10 years) 15
AIDS levy 3
Basic rate after 10 years 24
AIDS levy 3
Exporting manufacturing companies/individuals %
Income tax: Basic rate – (30%–40% export threshold) 20
(41%–50% export threshold) 17·5
(over 51% export threshold) 15
AIDS levy 3
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Capital gains tax
Immovable property and unlisted marketable securities
acquired after 22 February 2019 20% of gain
Intangible property acquired after 22 February 2019 20% of gain
Immovable property and unlisted marketable securities
acquired prior to 22 February 2019 5% of gross proceeds
Intangible property acquired prior to 22 February 2019 5% of gross proceeds
Disposal of listed marketable securities:
Held by the seller for less than nine months 4% of gross proceeds
Held by the seller for nine months or more 1·5% of gross proceeds
On principal private residence where the seller is over 55 years 0%
Inflation allowance calculation:
Based on the difference between the CPI on disposal of the specified
asset and CPI on acquisition of the specified asset divided by 100
Capital gains withholding tax on sale proceeds %
Immovable property 15
Listed marketable securities:
Held by the seller for less than nine months 4% of gross proceeds
Held by the seller for nine months or more 1·5% of gross proceeds
Unlisted marketable securities 5
Intangible property 5
Note: Other than the withholding tax on listed marketable securities, the
withholding tax is not final on the seller. Actual liability is assessed in terms of
the Capital Gains Tax Act.
Withholding taxes %
On dividends distributed by a Zimbabwean resident company to resident
shareholders other than companies and to non-resident shareholders:
By a company listed on the Zimbabwe Stock Exchange 10
By any other company 15
Informal traders 10
Foreign dividends 20
Non-executive director’s fees 20
Contracts (in the absence of ITF 263) 30
Non-residents’ tax %
On interest nil
On certain fees and remittances 15
On royalties 15
Residents’ tax on interest %
From building societies 15
From other financial institutions (including discounted securities) 15
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Elderly taxpayers (55 years and over)
Exemptions from income tax/capital gains tax for the year ended 31 December 2023
Z$ US$
Rental income 750,000 1,500
Interest on deposits with a financial institution 1,500,000 3,000
Interest on discounted instruments 1,500,000 3,000
Pension No limit No limit
Gain from the sale or disposal of a principal private residence is exempt.
Benefit derived from the acquisition of a passenger motor vehicle from an employer is exempt.
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