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5.1. Tax Base for Resident Entities

Resident companies are assessable to tax only on income arising or deemed to arise from sources within Zimbabwe. Income is deemed to have so accrued in particular where it is derived:

  • In remuneration of services or work done in the framework of a trade in Zimbabwe;
  • Regardless of the actual place of delivery, derived from a sales contract concluded in Zimbabwe;
  • under a contract made within Zimbabwe for the sale of goods, irrespective of place of delivery;
  • In remuneration of services rendered to the government whether in Zimbabwe or elsewhere;

Further interest and dividends are deemed to be from Zimbabwe if the recipient is a resident. Royalties and fees for know-how or for the use of, or the right to use a patent, design, copyright, trademark, film, and similar rights, are deemed to be from a Zimbabwe-source if they are used in the country.

Taxable income is defined as gross income from all Zimbabwe sources less deductions and other allowances necessary for the production of taxable income.

[Note that Zimbabwe is envisaging the introduction of a worldwide tax system to replace the current territorial system. Details regarding its implementation are yet to be announced.]