Zimbabwe - Overview

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com/zimbabwe
Worldwide Tax Summaries
Zimbabwe
Overview
Last reviewed - 19 May 2023
Zimbabwe, a landlocked country in Southern Africa, is bordered by Zambia to the northwest,

Mozambique to the east, South Africa to the south, and Botswana to the southwest. Zimbabwe,
which the United Kingdom annexed as Southern Rhodesia from the British South Africa Company
in 1923, obtained its independence in 1980. It is divided into eight provinces and two cities with
provincial status. Zimbabwe's capital is Harare, and the has 16 official languages official
languages, the main ones being English, Shona, and Ndebele.
Zimbabwe's official currency is called the the Zimbabwe dollar (ZWL) but use of certain foreign
currencies, mainly the United States Dollar (USD), The Botswana Pula (BP) and the South African
Rand (ZAR) to settle local obligations is permitted. Exporters can to retain and utilise export
earnings in order to import goods and services but a 30-day time limit has been imposed to use
the funds, failure of which results in the balance being converted to ZWL at the ruling weighted
auction rate (foreign currency is auctioned once a week by the Central Bank) together with funds
that are sold at auction by the government of Zimbabwe. Businesses are required to display
prices of their goods and services in both ZWL and United States Dollars (USD). Payment of
various taxes (e.g. VAT, PAYE, and CIT) must be paid in foreign currency on earnings that are
made in foreign currency. In addition, various statutory levies are denominated in US dollars.
Zimbabwe has had a troubled investment environment in the recent past, largely due to an
unstable political situation and the rather chaotic land reform programme that the government
embarked on. The land reform programme, in brief, entailed the taking over of white-owned
farmland to resettle landless black people with compensation limited to improvements. The
government's position has been that the reform programme was agreed on with the former
colonisers and compensation of USD3.5 billion for the improvements and not the land is to be
paid.
Zimbabwe's Second Republic was ushered in 2018, following the ouster of the late president of
the first republic, R. G. Mugabe, after which the country enjoyed relative stability. The Second
Republic has been trying to end sanctions, re-integrate into the commonwealth and attract foreign
direct investment with limited success, whilst they are attempting to improve the country's
investment policy (ease of doing business). As the country moves towards general elections,
scheduled to take place between July and August 2023, inflation has once again spiralled out of
control, as cost of goods and services increase as the value of the local currency depreciates
against hard currencies.
Zimbabwe opposes foreign domination of certain sectors of its economy. In this regard, the
investment legislation, on the one hand, prescribes local participation requirements in most
enterprises and, on the other hand, provides for limited investment protection and investment
incentives. The indigenisation laws that used to require 51% ownership of all foreign-owned
companies have been abolished.
Various tax incentives have been introduced in an attempt to grow foreign direct investment
(FDI). A new Stock Exchange has recently been created at Victoria Falls, where their listed shares
will be denominated in foreign currency. This is still in its infancy and is designed to attract foreign
investors. No other significant developments have occurred.
PwC Zimbabwe supports clients with the local knowledge and skill of its people, access to a
broad range of other professionals across the PwC global network of firms and enabling tools and
knowledge systems.
Quick rates and dates
Corporate income tax (CIT) rates
Headline CIT rate (%) 24.72
Corporate income tax (CIT) due dates
CIT return due date 30 April
CIT final payment due date 25 December (of current year)
First payment: 25 March;

Second payment: 25 June;
CIT estimated payment due dates
Third payment: 25 September;
Fourth payment: 20 December.
Personal income tax (PIT) rates
Headline PIT rate (%) 41.20
Personal income tax (PIT) due dates
30 April (individuals who work for a full tax year and

whose employers deduct employees tax on what is
PIT return due date called the Final Deduction System are not required
to file returns except in defined exceptions).
Where a return is filed, usually within 30 days of the

PIT final payment due date date of assessment.
Personal income tax (PIT) due dates
Payments by 25 March (10%), 25 June (25%), 25

September (30%), and 20 December (35%) apply to
PIT estimated payment due dates individuals earning income from a trade, profession,
or business as sole traders. Those in employment
have the employer withhold on a monthly basis.
Value-added tax (VAT) rates
Standard VAT rate (%) 14.5
Withholding tax (WHT) rates
Resident: NA / 15 / NA;
WHT rates (%) (Dividends/Interest/Royalties)
Non-resident: 15 / 0 / 15
Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%) 20
Headline individual capital gains tax rate (%) 20
Net wealth/worth tax rates
Headline net wealth/worth tax rate (%) NP
Inheritance and gift tax rates
There is no inheritance tax. However, there is an

Headline inheritance tax rate (%) estate tax of 5%.
Headline gift tax rate (%) NA
Zimbabwe contacts
Christopher Muzhingi
Senior Manager, PwC Zimbabwe
+263 24 233 8362
Edmore Mandizha
Senior Manager, PwC Zimbabwe
+263 4 338 3628
Norman Muzanarwo
Manager, PwC Zimbabwe
+263 24 2338362
© 2017 - 2023 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its
member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further
details.

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https://taxsummaries.pwc.

Zimbabwe, a landlocked country in Southern Africa, is bordered by Zambia to the northwest,

Quick rates and dates

Corporate income tax (CIT) rates

Headline CIT rate (%) 24.72

Corporate income tax (CIT) due dates

CIT return due date 30 April

CIT final payment due date 25 December (of current year)

First payment: 25 March;

Fourth payment: 20 December.

Personal income tax (PIT) rates

Headline PIT rate (%) 41.20

Personal income tax (PIT) due dates

30 April (individuals who work for a full tax year and

Where a return is filed, usually within 30 days of the

Payments by 25 March (10%), 25 June (25%), 25

Value-added tax (VAT) rates

Standard VAT rate (%) 14.5

Withholding tax (WHT) rates

Capital gains tax (CGT) rates

Headline corporate capital gains tax rate (%) 20

Headline individual capital gains tax rate (%) 20

Net wealth/worth tax rates

Headline net wealth/worth tax rate (%) NP

Inheritance and gift tax rates

There is no inheritance tax. However, there is an

Headline gift tax rate (%) NA

+263 4 338 3628

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