News Share

The Tax Hub

Daily Tax Newsletter

Zimbabwe

Responsive image

Update - Zimbabwe Finance Act (No. 2) 2019 Published

Zimbabwe's Finance Act (No. 2) 2019 was published in the Official Gazette on 21 August 2019. As compared to the Finance Bill (previous coverage), one of the key differences is with respect to the annual individual income tax brackets and rates for employment income, which are as follows in the Act with effect from 1 August 2019:

  • up to ZWD 3,500 - 0%
  • ZWD 3,501 to ZWD 15,000 - 20%
  • ZWD 15,001 to ZWD 50,000 - 25%
  • ZWD 50,001 to ZWD 100,000 - 30%
  • ZWD 100,001 to ZWD 150,000 - 35%
  • ZWD 150,001 and over - 45%

USD bracket thresholds are also specified in the Act with effect from 1 August 2019 as follows:

  • up to USD 350 - 0%
  • USD 351 to USD 1,500 - 20%
  • USD 1,501 to USD 5,000 - 25%
  • USD 5,001 to USD 10,000 - 30%
  • USD 10,001 to USD 15,000 - 35%
  • USD 15,001 and over - 45%

Employees earning employment income in a foreign currency are required to account for tax based on the USD brackets. Where the foreign currency is other than USD, it must be calculated in USD based on the international exchange rate on the date the income is received or accrued. The applicable ZWD and USD brackets and rates have been confirmed in tax rate tables published by the Zimbabwe Revenue Authority, which also include the daily, weekly, fortnightly, and monthly rate tables.  

Further to the individual income tax changes, the Act also provides for changes in capital gains taxation. This includes that capital gains derived from the disposal of assets acquired before 22 February 2019 are subject to tax at a 5% rate, while gains from the disposal of assets acquired after 22 February 2019 are subject to tax at a 20% rate. It is also provided that for gains from the sale of property, the withholding tax rate is 5% for property acquired before 22 February 2019 and for property acquired after 22 February 2019, the withholding rate is 15%, subject to a final assessment rate of 20%. Lastly, it is provided that for marketable securities, the capital gains withholding rates for listed and unlisted securities are 1% and 5%, respectively.

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Translate Documents

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More