Appendix: Tax rates, allowances, and exemptions Employment Income in ZWL- 1 January to 31 December 2024 ‘Annual Tables (ZWLS) Rate From 0 To 9,000,000 multiply by 0% From 9,000,001 To 27,000,000 ‘multiply by 20% From 27,000,001 To 90,000,000 ‘multiply by 25% From 90,000,001 To 180,000,000 multiply by 30% From To 270,000,000 multiply by 35% 180,000,001 From ‘And above multiply by 40% 270,000,001 ‘Aids Levy is 3% of the Individuals’ Tax payable after credits Employment Income in USD - 1 January to 31 December 2024 ‘Annual Tables (USD) : Rate From ° To 1,200 multiply by 0% From 1,201 To 3,600 multiply by 20% From 3,601 To — 12,000 multiply by 25% From 12.001 To 24,000 multiply by 30% From 24,001 To 36,000 multiply by 35% From 36,001 ‘And above multiply by 40% Aids Levy is 3% of the Individuals’ Tax payable after credits Foreign employees holding temporary employment permits issued by the Department of Immigration ‘to work in the licensed Special Economic Zones, pay Income Tax at 15% of their taxable income, ‘Tax credits - annual rates (1 January -31 December 2024) “Tax erediis USD. ‘Credit for taxpayers aged above 35 years 900 Blind Person’s credit 900 ‘Mentally or physically disebled person eredit | 900 ‘Youth Employment Tax Initiative 50102250 ‘The equivalent amounts in Zimbabwe dollars shall be applied at the prevailing exchange rate on the day of payment or income. ‘Scanned with |CamScannerMotoring benefits - annual rates (1 January -31 December 2024) Engine capacity (CO) I usD Upto 1500 03 7501-2000 #0 2001-3000 7,250 3001 and above 1,660 ‘The equivalent amounts in Zimbabwe dollars shall be applied at the prevailing exchange rate on the day of payment or income, Exemptions — annual rates (1 January - December 2024) Bonus, ‘USD400 (ZWLS7,500,000) USD3,200 or 1/3 of package (up to 1/3 of Retrenchment Package USD15,100) whichever is greater Pension Full amount for a person over 55 years Sale of motor vehicle by employer to employee | Full amount if« person is 5$ years or above ‘Medical Aid Contribution ‘Amount paid by employer ‘Scholarship or Bursary. Amount incurred by employer ‘The equivalent amounts in Zimbabwe dollars shall be applied at the prevailing exchange rate on the day of payment or income Deduetions - annual rates (1 January - December 2024) Ordinary pension fund Lesser of USD5400 per annum, amount paid and 7.5% of member's annual emoluments. Retirement Annuity Fund ‘the lesser of USD2,700 per annum and amount paid if there is more than one fund. And if retirement annuity fund is the only fund, as per ordinary sion fund above. NSA Lesser of USD5,400 per annum and 7.5% of member's annual emoluments, Professional subscriptions Amount paid NEC and Trade Union dues ‘Amount pai ‘Whea expenditure is incurred in ZWL the limit in ZWL is the prescribed USD multiplied by the exchange rate prevailing on date the expenditure is incurred ‘Scanned with |CamScannerFringe Benefits valuation (1 January - December 2024) ‘ OREM soe anemone Basis of valuation ______ Se ight of use company “The size of the engine of the Vehicle motor vehicle granted to the employee. Accommodation Open market rental Interest free loan LIBOR +5% and 15% , USD and ZWL loans or advances, respectively Mobile or landline 30% of the cost by employer ‘Airtime and data Allowance Insurance and funeral policies Premiums paid Phone Handset Cost paid by employer Clothing benefit Cost paid by employer DsTV Cost paid by employer Fuel Cost to employer Entertainment Cost paid by employer Personal motor vehicles Automobile Association of used on employer business Zimbabwe (AA) rates ‘Payment of employee's Amount paid, written off or Debts waived Education assistance Amount paid, reimbursed. or waived First passage benefit, Nil Withholding tax rates Withholding Tax ‘Due date Rate of tax Non-Residents Shareholders’ Within 30 days of the date of Y 10% for dividends from securities listed on stock Tax Distributi sal exchange Resident Shareholders Tax | Within 10 days of the date of [7 10% for dividends from istibution securities listed on stock exchange. ¥ 15% for other dividends Non-Residents Tax on Fees | On the 10 day of the month | 15% | preceding the payment 4 Non-Residents’ tax on| Within 10 days of the month | 15% remittances preceding the payment | ‘Non-resident tax on royalties | Within 10 days of the month | 15% preceding the payment — ‘Withholding Amounts Under | By the 10th day of the moath Contract following month of payment ‘Non-Executive Directors’ Fees | By the 10° day of the month | 20% following month of payment ‘Scanned with |CamScanner‘Treaty rates of taxes Country Dividends (1) Fees Royalties % % % Botswana saying) 10 10 Bilas 10 10 10 * Canada 10 10 10 China 25(1V7.5(2) 7.5 1S France 10 10 10 Germany 10 15 15 Malaysia 10 10 10 Maxitive 10 ovis (4) 1s * Netherlands 10 10 10 Norway 15 10 10 Poland 10 15 10 South Africa sno 5 10 Sweden 1s 10 10 , United Kingdom 5 10 10 United Arab Emirates 3 6 9 Notes (1) Only on shareholding or voting power, by a company, of at least 25%; otherwise, the rates remain (1). () The rate in scenario where voting power is below 25%, G) Not applicable on DTAs hence Non-residents’ tax on remittances remains at 15% in all cases Remittances (3) % 15 15 15 15 1s 15 15 15 15 1s 15 1s 1s 1s 1s (4) Both rates are specified. Exemption appears to depend on there being liability in Mauritius. investment income tax rates [Taxpayer Rate (Self-employed, sole trader or partners 2% Companies and trusts 25% Special Mining lease 15% Licensed investor in Special Economic Zone (SEZ) and power generation project First five years of the arrangement 0% Second five years of the arrangement 25% ‘An approved BOOT or BOT arrangement: First five years of the arrangement 0% Second five years of the arrangement 15% ‘Thereafter 24% 287) ‘Scanned with |CamScannerIndustrial Park developer First five years of the arrangement 0% ‘Second five years of the arrangement 25% Tourist facility in approved tourist development zone First five years of the arrangement 0% Second five years of the arrangement 25% ‘An operator ofa tourist facility in approved tourist development zone First five years of the arrangement 0% Second five years of the arrangement 25% Export manufacturing company which exports: Export level(%) 30-40 of its output. 20% Export level(%) 41-50 of its output. 17.5% Export level (%) above 51 15% 3% AIDS levy is applicable on income tax chargeable after-tax credits. Normal rate is 25% ‘Income Tax prescribed values Item 2024 2023, USD USD. ZWLs Conisibations by Employers to] 1,500 1,000 '500,000 benefit funds for each member | (employee) “Allowance to former employce| 50,000 300 250,000 retiring on grounds of ill health] etc. (exgraitia it) Se ken 200 200 100,000 200 200 100,000 100,000 100,000 $0,000,000 100,000 100,000 ‘$0,000,000 100,000 100,000 ‘50,000,000 Donation to the Public Private! 50,000 50,000 ¥ 25,000,000} Partnership Fund ‘Donation to the Destitute| 50,000 50,000 25,000,000 Homeless Persons Rehabilitation Fund_ ‘Trade Conventions or Trade! 50,000 2,500 7,250,000 | = 30,000 30,000 75,000) Expenditure on| x 000,000 infrastructural development , or| 7 maintenance of property owned ‘by local authority 288] ‘Scanned with |CamScannerMaximum Tease expenses for PMV 10,000 10,000 '5,000,000 Withholding tax on contracts| (1TF263) threshold 1,000) 1,000 "500,000 Exemption of annuity _on| retirement hump sum payment’ {csp __ 1,800 1,800 900,000 ‘Exemption from income tax of| Lamp sum payments from funds | with changed rules 7,800 1,800 ‘900,000 Minimum exemption of pension commutaion from the! Consolidated Revenue Fund where employment ceases due to Teirenchment 1,800 1,800 ‘900,000 Pension contribution employers | per member 5,400 3,000 1,500,000 Limitation of PMV for capital allowances. 10,000 10,000 5,000,000 ‘Qualifying cost per unit of] employee housing, 25,000 25,000 72,500,000 ‘Arrear pension contribution by employees 17,000 1,000 500,000 ‘The equivalent amounts in Zimbabwe dollars shall be applied at the prevailing exchange rate on the day of payment or income. Capital gains tax rates. Date of acquisition of specified asset ‘Applicable rate J ‘Acquired before 1* of February 2009 and sold thereafter '5% of capital amount ‘Acquired after I February 2009 and sold before 22% February 2019 | 20% of capital pain ‘Acquired after 1 February 2009 and sold after 22* of February 2019 | 5% of capital amount Acquired after 22% of February 2019 and sold thereafter 20% of capital gain [Listed marketable securities held for than 180 days on date of sale | 4% of capital amount Capital gains withholding tax. Specified asset ‘Applicable rate Immovable property 15% of proceeds (not final tax) Unlisted marketable securities '5% of proceeds (not final tax) Listed marketable securities held for at Teast 180 days 1.5% of gross proceeds (Final tax) ‘onsale date Listed marketable securities held for less than 180 | 40% of gross proceeds (not final tax) days on sale date Inflation adjustment rate foreign currency disposal 2,5% per year Inflation adjustment rate ZWLS disposal Use of Consumer Price Index 289 ‘Scanned with |CamScanner‘Value Added Tax prescribed values. [tem ‘Amount ‘VAT registration threshold ‘USD25 000, VAT category C threshold 'USD240 000 VAT category D threshold 'USD120 000 Minimum amount that cannot be refunded ‘USD60 Minimum capital goods value for VAT ‘USD60 | adjustment Minimum lay bye valve USD25 Value of supply not requiring fiscal tax USDIO invoice ‘Minimum WAT to be Refund USD60 Late return submission penalty ‘USD30 daily Tate VAT registration penalty 'USD30 daily Late notification of change in status 'USD30 daily Minimum value for VAT deferment 'USDI,000,000 ‘VAT standard rate 15% VAT Zero rate 0% VAT on imported services 135% Exempt rate Ni 2801 ‘Scanned with |CamScanner