Taxes in Zimbabwe

ZIMRA operates under the Ministry of Finance, Economic Development and Investment Promotion. Its main systems include the Tax and Revenue Management System (TaRMS), the Self-Service Portal (SSP), the Fiscalisation Data Management System (FDMS) and the Taxpayer Identification Number (TIN). The main tax laws include the Income Tax Act, Value Added Tax Act, Capital Gains Tax Act and Finance Acts. The tax year generally runs from 1 January to 31 December. Tax is generally paid in the currency of trade. In 2026, a taxpayer receiving more than half of income in foreign currency generally applies 50-50 accounting between foreign and local currency. Certain imported services, exports and digital services are handled in United States dollars or another specified foreign currency. Individuals with employment income usually pay through Pay As You Earn (PAYE). The employer deducts PAYE before paying net remuneration and generally submits the return by the fifth day of the following month, with payment due by the tenth. For 2026, the progressive monthly PAYE bands in United States dollars are 0% up to USD 100, 20% less USD 20 from USD 100.01 to USD 300, 25% less USD 35 from USD 300.01 to USD 1,000, 30% less USD 85 from USD 1,000.01 to USD 2,000, 35% less USD 185 from USD 2,000.01 to USD 3,000 and 40% less USD 335 above USD 3,000. The corresponding Zimbabwe-dollar bands are 0% up to ZWG 2,800, 20% less ZWG 560 up to ZWG 8,400, 25% less ZWG 980 up to ZWG 28,000, 30% less ZWG 2,380 up to ZWG 56,000, 35% less ZWG 5,180 up to ZWG 84,000 and 40% less ZWG 9,380 above that amount. A 3% AIDS Levy applies to tax after credits. Medical, elderly, blind and disabled person credits can reduce the amount due. Mixed-currency remuneration uses the United States-dollar table with the tax allocated between currencies. Income from individual trade or investment is generally taxed at 25% plus the 3% AIDS Levy on the income tax. Companies and trusts generally face a 25% income-tax rate, making the combined rate 25.75% before special rules. Mining companies generally use 25%, while a special mining lease holder uses 15%. Approved incentives can reduce the rate or provide a temporary zero rate. Examples include licensed investors, approved industrial parks, tourist facilities, special economic zones and qualifying export manufacturing. These benefits depend on the relevant approval, activity and eligibility conditions. Special economic zones generally have a zero rate for the first five years and 15% afterwards; other schemes have different periods and rates. Presumptive Tax provides fixed or calculated charges for selected small or informal activities instead of the ordinary income-tax method. Covered activities can include transport, taxis and omnibuses, driving schools, hairdressing, restaurants and bottle stores, small-scale mining, cottage industries and informal trade. The applicable charge depends on the activity. Presumptive Rental Income Tax is 15% of rent in the specified cases. Gaming operators generally pay 20% of gross monthly takings, while punters tax is 25% of gross winnings. Intermediated Money Transfer Tax (IMTT) is 1.5% for Zimbabwe-dollar transactions and 2% for foreign-currency transactions from 1 January 2026. Its deductibility depends on registration, compliance and any applicable fiscalisation requirements. Value Added Tax (VAT) applies to taxable supplies. The standard rate is 15.5% from 1 January 2026. Zero-rated examples include exports, basic commodities and farm inputs. Exempt examples include domestic piped water, financial services, residential accommodation, education, public transport and medical services. A business generally registers when taxable supplies exceed USD 25,000, or the equivalent threshold, in a twelve-month period. Category C applies at a USD 240,000 threshold and Category D at USD 120,000 where the relevant rules apply. Only a registered business may charge VAT. Input VAT generally requires a valid Fiscal Tax Invoice or FDMS-valid invoice, and from 2026 qualifying information is regularly drawn automatically from FDMS or TaRMS. VAT returns and payments follow the applicable notice; the standard 2026 timetable generally places the return on the tenth day of the following month and payment on the fifteenth, although some ZIMRA calendar entries show a later date. The latest period-specific notice controls. A stated VAT refund processing target is 30 days, but a refund claim still requires complete supporting records. A business generally registers with ZIMRA within 30 days after starting, while an employer generally registers within 14 days. Registration leads to a TIN and access to TaRMS or SSP. A compliant taxpayer can receive an automated Tax Clearance Certificate, known as ITF263. Where an aggregate contract payment reaches USD 1,000 or more and the payee does not provide a valid ITF263, the payer generally withholds 30%; the certificate issued to the payee records a credit against income tax. Businesses keep books and records in English for at least six years and make them available for ZIMRA inspection or retrieval. Taxpayers with quarterly payment obligations use Quarterly Payment Dates (QPD). The quota pattern is generally 10%, 25%, 30% and 35%. For 2026, PN17 lists returns on 20 March, 20 June, 20 September and 15 December, with the first payment on 25 March. A generic ZIMRA calendar lists 25 March, 25 June, 25 September and 20 December instead. This difference means the latest official period notice should be checked before payment. An annual Self-Assessment Return is generally due by 30 April of the following year. Late filing or payment can produce penalties, interest and possible prosecution. Capital Gains Tax generally applies at 20% to a capital gain on an asset acquired after 22 February 2019. Assets acquired before that date generally follow the applicable 5% regime. A special 2026 rule applies a 20% charge on the transaction value for transfers of shares or interests in an entity holding land in Zimbabwe, with payment due no later than 30 days after the transfer in United States dollars or another specified foreign currency. International tax depends on the source of income, presence in Zimbabwe, the payment type and any applicable double-tax agreement. From 1 January 2026, a permanent establishment can arise from a fixed place or service activities exceeding 90 days in aggregate during a twelve-month period. Construction, installation and supervision activities can create a permanent establishment from the first day of operation. Payments to non-residents can require withholding, including dividends, management or professional fees, royalties and imported services. A common rate for non-resident fees, remittances and royalties is 15%; dividends are commonly 10% for listed companies and 15% otherwise. A treaty can reduce or replace a domestic rate. Zimbabwe has 19 income-tax agreements in force, so the recipient's residence and treaty conditions need checking. Transfer pricing applies the arm's-length principle to controlled transactions involving related persons and to transactions with a non-resident permanent establishment. A transfer-pricing return accompanies the income-tax return. Supporting documentation must be prepared contemporaneously, supplied within seven days of a written ZIMRA request and retained for at least six years. Multinational groups meeting the threshold of at least EUR 750 million of revenue in at least two of the four preceding fiscal years can fall under the domestic minimum top-up tax rules when their combined effective rate is below 15%. Country-by-country reporting can also apply. In mining, 2026 rules include a 10% export tax on unbeneficiated lithium, chrome and antimony, and a 3% levy on the gross value of sales or exports of specified minerals such as coal, lithium, black granite, quarry stone and dimensional stone. Digital services consumed or used in Zimbabwe can trigger a separate withholding mechanism when supplied electronically by a non-resident. Examples include streaming, cloud services, software, artificial-intelligence platforms, e-hailing, online content and satellite internet. Banks, building societies, the Reserve Bank of Zimbabwe, POSB, payment-service providers, mobile-money services, money-transfer companies and microfinance institutions can act as intermediaries. The withholding rate is generally 15.5% when the foreign supplier is not VAT-registered, or a tax fraction of 3/23 when the supplier is registered. The intermediary generally files by the tenth day of the following month and pays by the fifteenth. A non-resident supplier generally registers through simplified e-commerce TaRMS when supplies exceed USD 25,000 in twelve months, displays VAT-inclusive prices and uses FDMS fiscal invoices. Physical imports, physical services and consumption outside Zimbabwe are excluded from this digital-services rule. A taxpayer can object in writing within 30 days after an assessment or decision. ZIMRA generally has 90 days to determine the objection; an objection left unresolved within that period is treated as disallowed. Further appeal can proceed to the Special Court for Income Tax Appeals or the High Court, then to the Fiscal Appeals Court and, where permitted, the Supreme Court. Customs duty, excise and municipal charges may also affect a transaction, but their rates and legal treatment depend on the product, transaction and responsible authority rather than on one general income-tax rule.