Income Tax Rate w.e.f 1st January 2016
| Annual Income $ | Tax Rate |
| 0 to 3,600 |
0% |
| 3,601 to 18,000 |
20% |
| 18,001 to 36,000 |
25% |
| 36,001 to 60,000 |
30% |
| 60,001 to 120,000 |
35% |
| 120,001 to 180,000 |
40% |
| 180,001 to 240,000 |
45% |
| 240,001 and above |
50% |
Aids Levy for 2016 is 3% of the Individuals' Tax payable
Income Tax Rate w.e.f 1st January 2015
| Annual Income $ | Tax Rate |
| 0 to 3,600 |
0% |
| 3,601 to 18,000 |
20% |
| 18,001 to 36,000 |
25% |
| 36,001 to 60,000 |
30% |
| 60,001 to 120,000 |
35% |
| 120,001 to 180,000 |
40% |
| 180,001 to 240,000 |
45% |
| 240,001 and above |
50% |
Aids Levy for 2015 is 3% of the Individuals' Tax payable
Lowest Individual Tax Rate in Zimbabwe is 20% and Highest Rate is 50%
Income Tax Rate w.e.f 1st January 2014
| Annual Income $ | Tax Rate |
| 0 to 3,000 |
0% |
| 3,001 to 12,000 |
20% |
| 12,001 to 24,000 |
25% |
| 24,001 to 60,000 |
30% |
| 60,001 to 90,000 |
35% |
| 90,001 to 120,000 |
40% |
| 120,001 to 240,000 |
45% |
| 240,001 and above |
50% |
Aids Levy for 2014 is 3% of the Individuals' Tax payable
The current tax legislation provides for a number of
tax concessions which are meant to provide tax relief to
elderly persons. These tax concessions, which are mostly
in the form of tax exemptions and credits, are contained
in the Income Tax Act [Chapter 23:06], the Finance Act
[Chapter 23:04] and the Capital Gains Tax Act [Chapter
23:01].
For the purposes of these concessions, an elderly person
is a person aged 55years or more
Exemption from Income Tax of the first US$3 000.00 per annum on rental income
Exemption from Income Tax of the first US$3 000.00 per annum on income earned from bankers acceptances
Exemption from Income Tax of the first US$3 000.00 per annum on income earned from interest on deposits to financial institutions.
Entitled to an elderly persons? credit of US$900.00 per annum.
Pension received from a pension fund or the Consolidated Revenue Fund is exempt from Income Tax.
Where an employer disposes of a motor vehicle to an employee whether on termination of employment or otherwise, the benefit is exempt from tax.
The full amount arising from the disposal of a
Principal Private Residence (PPR) by persons who are 55
years or above on the date of the sale is exempt from
Capital Gains Tax.
The first US$1 800.00 that accrues on the sale of any
unlisted marketable security is exempt
Standard rate is 25% and in addition there is a 3% AIDS Levy on the tax making the rate effectively 25.75%
The Capital Gains Tax shall be calculated at a rate of 20% of the capital gain determined in accordance with the CGT Act. Where a specified asset that was acquired prior to 1 February 2009 is disposed of after that date, CGT shall be calculated at a rate of 5% of the selling price. The rate of capital gains withholding tax for unlisted securities was reduced from 10% to 5% with effect from 1st September 2010. In the case of a sale of a listed marketable security (e.g. listed shares), the rate of Capital Gains Withholding Tax shall be 1% of the price at which the security was sold. This is with effect from 1 August 2009.
Every registered employer is required to submit
returns of all persons employed by him detailing the
salaries, wages, allowances, benefits and pension
deductions for each person so employed and this is in
terms of Section 39(1) of the Income Tax Act.
The due date for submission of ITF16 is within 30 days
after the end of the year of assessment and can be
submitted electronically. (Please note that ITF16
returns are different from P2 returns that are submitted
monthly with PAYE payments)
All persons or representative taxpayers who have received or to whom income has accrued from a source within or deemed to be within Zimbabwe, are required to submit income tax returns for each tax year as follows:
Persons who have been specified in terms of Section 37A of the same Act as being on self assessment are required to furnish self assessment returns in duplicate by 30 April every year. This include clients who were registered or were required to have registered under Category ?C? for Value Added Tax (VAT) in terms of the VAT Act (Chapter 23:12) as at 31st December 2007 and thereafter or were registered under the Banking Act (Chapter 24:20) or under the Insurance Act (Chapter 24:07).
All persons who have not been specified as being on Self Assessment are required to submit their income tax returns 30 days from the date of the Commissioner General?s public notice in terms of Section 37 of the Income Tax Act (Chapter 23:06). The income tax return for companies and trusts is ITF 12 and this return should be accompanied by financial statements.
Persons in receipt of income which solely consists of remuneration which has been subjected to employees tax (PAYE) are not required to furnish income tax returns. Exceptions include those who left employment during the course of the year, received income from more than one source or changed employers during the course of the year. ITF1 ? is the return for employment income to be completed by individuals on employment income. ITF1A ? is a return by an individual of income from trade, investment or profession