An act to provide for the taxation of incomes and for other taxes. Rev 1 form a letter appointing him to be the public officer of the said company, stating the full name, id number, and a statement to the effect that the public officer is a signatory to. Statement as confirmed in the finance act no 2 of 2019 which was gazetted into law. Act to be income derived from a source within zimbabwe, at the specifiedpercentage of each united states dollar of that income.
State and to provide for the authoritys functions, powers and management. Tax credits are granted in respect of foreign taxes paid on foreign sources income in accordance with the income tax act and numerous double tax agreements. The aids levy of 3% is chargeable on income tax payable, after deducting credits. Income tax, revenue, amnesty, special circumstances.
Income tax is levied on earnings income of an individual or a business. The amnesty covers penalty and interest on all taxes. Income from a foreign source attracts tax only if it falls within the specific provisions relating to deemed source. Financial institutions income from treasury bills specifically stated as tax free is exempt from income tax.
A 3% of tax liability aids levy must be added to the total tax liability calculated. The researchs main thrust was to evaluate the effectiveness of the presumptive tax system in zimbabwe, case study zimra region one. Paye from employees and remit paye to zimra by the 10th. Click download or read online button to get zimbabwe income tax book now. The zimbabwe national budget 2017 kpmg international.
Bonus section 1b of the finance act confirms that the tax free bonus has increased to zwl5 000 usd320. Jan 05, 2015 accruals acquired act chapter agent agreement allowable deductions annuity assessed loss beneficiary building calculated capital allowances capital expenditure capital gains tax capital nature capital redemption allowance chapter summary commissioner contracting cost court deemed disposal dividends donation double taxation earned employee ended. Prohibited deductions for income tax purposes the herald. Wht of 15%, calculated on the gross amount of interest, is payable on interest accruing to any person resident in zimbabwe. Prohibited expenses in the calculation of taxable income the following are some of. Zimbabwe pkf assurance, audit, tax, advisory and business. Try to understand what may be uncertain with regard to each criterion, and then link this to how this has been clarified by case law, which cases provided that clarity, and what the resulting precedent was. Section 72 payment of provisional tax of the income tax act chapter 23.
New legislation to the sales tax act were also enacted in 1998 to allow for. The following tax rates and allowances are to be used when answering the questions. Finance act 2017 the 2017 budget proposals have been passed with some modifications by way of the finance act 2017. Zimbabwean resident individuals and corporates are subject to tax in zimbabwe on foreign interest and dividends. The research looked at the implementation of the tax head, setting of tax rates, collection of revenue and the views of various stakeholders. Withholding tax on contracts and tenders exemption from withholding tax on contracts for schools that have accumulated arrears from failure to withhold tax for a period of six. Changes to the income tax act changes section details effective date general administration and management charges. The zimra eservices platform seeks to make it convenient, simple, safe and quick for zimbabwean citizens and businesses to file their tax returns, make online payments and keep track of their tax transactions online and from anywhere in the world. We also highlight the current inconsistency between the tax tables as gazetted max rate of 45% and those available on the zimra website as at 30 august 2019max rate. The zimra eservices platform seeks to make it convenient, simple, safe and quick for zimbabwean citizens and businesses to file their tax returns, make online payments and keep track of their tax. The research looked at the implementation of the tax head, setting of. The payee is taxed on the gross amount using the appropriate rate of tax, and the tax withheld the withholding tax is remitted.
The eservices portal puts you, the client, in total control of your tax affairs. Presented by caa 2017 page 7 of 62 for icaz 2017 cta 1 exams property of caa learning media tut 01 brian mayo is a qualified chef and had been working. The zimbabwe revenue authority, or zimra, is the body responsible for collecting taxes and other revenue streams for the government in zimbabwe. The payee is taxed on the gross amount using the appropriate rate of tax, and the tax withheld the withholding tax is remitted to zimra on or. Zimbabwe income tax download ebook pdf, epub, tuebl, mobi. Tax amnesty a new tax amnesty law will require taxpayers to voluntarily disclose previously unpaid taxes or tax irregularity. Zimbabwe national budget proposals 2019 including 2018 tax. Zimra intermediated money transfer tax is a tax collected in terms of section 36g as read with the thirtieth schedule of the income tax act chapter 23. Planning and preparation is very important in meeting the deadline for submission of returns. Zimbabwe amendments to the income tax act and introduction of new transfer pricing regulations february 2019 the new minister of finance issued a number of proposals to the income tax act chapter 23.
Aug 08, 2012 in terms of section 80 of the income tax act chapter. Foreign dividends are subject to tax at a flat rate of 20%. This applies to interest arising from a registered banking institution or unit trust scheme. The business times reported that the zimbabwe revenue authority zimra is. The new rules govern domestic transactions between associates as well as transactions with foreign entities. Detailed discussion the new transfer pricing legislation endorses. Annually updated handbook on the tax laws and regulations in zimbabwe including the income tax act, plus basic information on starting a business. Tax rates individuals employment income year ended 31 december 2014 taxable rate amount cumulative. Zimbabwe personal income tax rate 20042020 data 2021. This applies to interest arising from a registered banking institution or unit trust. The disclosure is to be made between 1 january and 30 june 2018. Tax rates individuals employment income year ended 31 december 2017.
Amendments to the income tax act, 2015 act 896 the commissionergeneral of the ghana revenue authority gra wishes to inform the general public. The following is a summary of the significant changes. Car benefit section 8 of the finance act confirms the new motoring benefit values as tabulated below. The administration of income tax is governed by the income tax act of zimbabwe. December 2018 and the version passed by the senate on 30th january 2019. Zimbabwe amendments to the income tax act and introduction. Some income is subject to withholding tax and not corporate tax or paye.
Microsoft office document icon income tax act 2306updated. Zimbabwe revenue authority return for the remittance of withholding taxes please fill in this form in duplicate, submit original to zimra and retain duplicate copy part a 1. The income covered under the tax amnesty covered taxes the tax amnesty relates to unpaid taxes or duties already known by the zimbabwe revenue authority zimra and recorded in its system, or not declared to zimra but should have been paid by 01 december 2017, or paid from income. Partii income 1ax arnendments to chapter i of finance act chapter 23.
Allowable deductions, prohibited deductions, certain thresholds income tax act. Jan 01, 2020 other changes to the income tax act include the following. Effectiveness of presumptive tax system in zimbabwe. Aids levy equal to 3% of the basic tax also payable.
Special circumstances in which income is deemed to have accrued. Rev 5 zimbabwe revenue authority return for the remittance. Taxed on income from a zimbabwean source or from a deemed zimbabwean source. Zimbabwe amendments to the income tax act and introduction of new transfer pricing regulations february 2019 the new minister of finance issued a number of proposals to the income tax act. The income tax act requires all business entities to file their returns of income with the gra in respect of each year of assessment not later than four 4 months after its financial year. The commissioner general hereby notifies its valued clients to access their tax clearances itf263 for the year 2020. Mar 03, 2008 annually updated handbook on the tax laws and regulations in zimbabwe including the income tax act, plus basic information on starting a business. Changes to tax laws, tax rates and any new taxes are announced with the national. This page provides zimbabwe personal income tax rate actual values, historical data, forecast, chart, statistics, economic calendar and news. Income tax corporate 3 mining 8 income tax individuals 11 withholding taxes 15 value added tax 18. Normal tax is payable by zimbabwean companies on their taxable income at the rate of 25%. Withholding tax on contracts and tenders exemption from withholding tax on contracts for schools that have accumulated arrears from failure to withhold tax for a period of six years ended 311217. However, a residence based income tax system is being proposed to come into effect on 1. In 1994 the sales tax act was further amended to allow for installments in tax payments and also in 1997 to provide for bad debts.
Mar 15, 2018 submission of income tax returns itf12c, itf1, cgt1 all persons who receive income or gains, or to whom income or gains accrue from a source within or deemed to be within zimbabwe, are required to submit income tax returns or capital gains tax returns. What are the current income tax rates for residents and non residents in zimbabwe. Income tax transitional period provisions act chapter. Zimbabwe tax amnesty 2018 factsheet standard chartered. The zimbabwe revenue authority zimra hereby reminds its valued clients who are registered for value added tax vat. With effect from the year of assessment beginning on the 1st january, 2019, the schedule credits and rates of income tax to chapter i of the finance act. This tax has been in place since 2003 and an amendment was made by statutory instrument 205 of 2018 on 12 october 2018 and effective from october 2018. The administration of income tax is governed by the income tax act of zimbabwe, chapter 23. However, a residence based income tax system is being proposed to come into effect on 1 january 2014.
Detailed discussion the new transfer pricing legislation endorses the arms length principle and imposes documentary obligations on taxpayers. It derives its mandate from the revenue authority act, passed by the parliament of zimbabwe in 2002 and other related legislation. That together with the aids levy gives an overall effective rate of 25. The tax withheld is a final tax, and the financial institution is responsible to withhold the tax. The tax amnesty period is from 1 january 2018 to 30 june 2018. An act to establish the zimbabwe revenue authority for the collection of certain revenues of the. An act to provide for the taxation of incomes and matters connected therewith. Exempting the reserve bank of zimbabwe from the requirement of administering withholding tax on contracts in relation. There are certain deductions which are prohibited in terms of section 16 of the income tax act chapter 23.
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