Zimbabwe even if earned by the work or activity of the taxpayer outside the country. December 20, the accountant of midlands adjusted its accounting net. However, a residence based income tax system is being proposed to come into effect on 1 january 2014. The commissionergeneral of taxes who is appointed in accordance with the provisions of the gambia revenue. Aids levy for 2015 is 3% of the individuals tax payable. It includes income from employment paye and from trade or investment. All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. Value added tax general amendment regulations, 2017. This book is accordingly written in such a way so as to make a student who is a user of this book to prepare his or her examination with very minimal effort.
Under the current income tax act, income is taxed on the basis of origin with tax levied on sources within. Chidoko c, bemani j and matungamire p tax law and practice in zimbabwe. The international center for notforprofit laws digital legal library holds nearly 4,000 resources from over 200 countries and territories. Value added tax general amendment regulations, 2017 no. We are grateful to the institute of chartered accountants of zimbabwe icaz. Section 18, 19 and 20 not to apply in certain cases 22. Page 3 antiavoidance legislation provisions relating to persons carrying on business which extends beyond zimbabwe s 19 provisions relating to overunder pricing and to exports without sale of goods by nonresident person s 23 transfer pricing v. 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. Normal tax is payable by zimbabwean companies on their taxable income at the rate. Income tax act 90 of 1988 income tax amendment act. The searchable database contains laws, reports, and other civil society legal resources from countries around the world. Enacted by the parliament and the president of zimbabwe. The zimbabwe revenue authority, or zimra, is the body responsible for collecting taxes and other revenue streams for the government in zimbabwe. The botswana unified revenue service burs wishes to inform the public that parliament approved amendments to certain provisions of the value added tax vat act at its sitting in novemberdecember, 2014.
The zimbabwe revenue authority zimra hereby reminds its valued clients who are registered for value added tax vat. Taxation is a subject that is feared by many students, but in actual fact, this is by far the simplest subject. Zimbabwe individual income tax paye is imposed at progressive rates up to 45%. The tax is imposed on salary, allowances, fringe benefits etc. Icaz presentation on tax avoidance and transfer pricing. The aids levy of 3% is chargeable on income tax payable, after. Income tax is levied on earnings income of an individual or a business. Zimbabwean resident individuals and corporates are subject to tax in zimbabwe on foreign interest and dividends. Income tax is levied under the income tax act chapter 23. An act to make provision for the charge, assessment and collection of income tax, for the ascertainment of the income to be charged and for matters incidental thereto.
An act to consolidate and amend the law relating to the imposition, assessment and collection of tax on incomes. Underpinning the thrust of the transitional stabilisation programme tax policy is movement. Tax administration laws amendment act, 2014 act no. Short title this act may be cited as the income tax act.
Special circumstances in which income is deemed to have accrued. The pkf worldwide tax guide 20 wwtg is an annual publication that. Partii income 1ax arnendments to chapter i of finance act chapter 23. Lowest individual tax rate in zimbabwe is 20% and highest rate is 50%. Basics and definitions income tax act, 1961 background, concept and mechanism of income tax definitions, concept of income, previous year, assessment year, distinction between capital and revenue receipts and expenditure, residential status basis of charge and scope of total income 2. An act to provide for the taxation of incomes and matters connected therewith. An increase in the turnover tax threshold from k200 million to. Concepts and perspectives 2011 lambert academic publishing. Government of zambia act national assembly of zambia. If you are a contractor and want a calculation on your tax and net retention in zimbabwe, we can supply it to you free of charge. Basisbasisindividuals pay tax only on zimbabwesource earnings or income deemedto be zimbabwean source. Personal income tax pit is a direct tax levied on the income of an individual. This statutory instrument came into force on the day it was gazetted, 16th february 2017. The administration of income tax is governed by the income tax act of zimbabwe, chapter 23.
Income tax in zimbabwe can range from 0 to 50 percent, and you need to be sure you are placed in the correct tax brackets. 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. Deductions allowed in determination of taxable income. Provided also that in respect of any income chargeable to tax under clause i of subsection 1 of section 115bbe of the incometax act, the amount of incometax computed under this subsection shall be. An act to provide for the taxation of incomes and for other taxes. Nonresidents are only subject to cgt on any direct or.
Annually updated handbook on the tax laws and regulations in zimbabwe including the income tax act, plus basic information on starting a business. Taxpayers are classified into residents and nonresidents. The following tax rates and allowances are to be used when answering the questions. Act to be income derived from a source within zimbabwe, at the specifiedpercentage of each united states dollar of that income. Zimbabwe 2019 national budget budget highlights and tax summary. In most african countries, income tax has emerged as the main source of. Foreign dividends are subject to tax at a flat rate of 20%. Bank use promotion and surpression of money laundering act ch.
Zimbabwe individual income tax is imposed at progressive rates up to 35%. Informal sector tax administration in zimbabwe article pdf available in public administration and development 341 february 2014 with 8,658 reads how we measure reads. The key policy proposals announced in the 2019 national budget are included in this document. 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. The commissioner general hereby notifies its valued clients to access their tax clearances itf263 for the year 2020. Interpretation in this act, unless the context otherwise requires. Key tax changes aimed at reducing the tax compliance burden for smes include. A quick guide to taxation in gambia 20 3 introduction effective january 20, the income and value added tax act, 2012 was introduced to repeal the then existing income and value added tax act, no.
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