Income tax act zimbabwe pdf

The new rules govern domestic transactions between associates as well as transactions with. Income from a foreign source attracts tax only if it falls within the specific provisions relating to deemed source. The tax rates and legislation in this reckoner are applicable from 1 january 2016 to 31 december 2016. Aids levy equal to 3% of the basic tax also payable.

Bonus section 1b of the finance act confirms that the taxfree bonus has increased to zwl5 000 usd320. Taxable income 2 the taxable income of a taxpayer for a taxation year is the taxpayers income for the year plus the additions and minus the deductions permitted. Interpretation in this act, unless the context otherwise requires. Zimbabwe pkf assurance, audit, tax, advisory and business. The key policy proposals announced in the 2019 national budget are included in this document. Zimbabwe cent as defined in section 23 of the finance no. Pdf the nexus between section 15 2 t of the income tax. Presented by caa 2017 page 4 of 62 for icaz 2017 cta 1 exams property of caa learning media 9 capital gains tax caa test 3 20 40 10 income taxes and capital gains tax icaz adapted, itc june 2015 paper 1 question 1 25 how to attempt these self assessment questions. The commissioner general hereby notifies its valued clients to access their tax clearances itf263 for the year 2020. Enacted by the parliament and president of zimbabwe. Tax law and practice in zimbabwe, harare, zimbabwe. Income tax is levied on earnings income of an individual or a business.

The expenditure would have been allowed had it been incurred after beginning the. Procedures, which is similar to the proposed new subsection 917 of the income tax act, 1967. 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. Applied taxation module 1 tax 402 ii for 2018 cta 2 exams property of caa learning media caa caa learning media is an icaz approved learning partner. Income sums received on cessation of employment 18.

Tax payable by persons resident in canada 2 1 an income tax shall be paid, as required by this act, on the taxable income for each taxation year of every person resident in canada at any time in the year marginal note. Taxable income 2 the taxable income of a taxpayer for a taxation year is the taxpayers income for the. Unless specifically provided for in the income tax act, fringe benefits are taxed in the hands of the employee based on the cost to the employer. Tax facts income tax individuals employment income general taxable income from employment is income from a true or deemed zimbabwe source not considered to be capital in nature. Underpinning the thrust of the transitional stabilisation programme tax policy is movement. The tax year in zimbabwe runs from 1 january to 31 december. Part i preliminary 1 short title this act may he cited as the finance act, 20 4.

The aids levy of 3% is chargeable on income tax payable, after deducting credits. Income tax act 90 of 1988 income tax amendment act 99 of 1988 income tax act 70 of 1989. Zimbabwe amendments to the income tax act and introduction. Zimbabwe amendments to the income tax act and introduction of. Prohibited deductions for income tax purposes the herald. Zimbabwe amendments to the income tax act and introduction of new transfer pricing regulations. Includes 3 % aids levy 15% of employment income plus 3% aids levy. Lowest individual tax rate in zimbabwe is 20% and highest rate is 50%. What are the current income tax rates for residents and non residents in zimbabwe. To make further provision for the revenues and public funds of zimbabwe and to provide for matters connected therewith or incidental thereto. 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. Normal tax is payable by zimbabwean companies on their taxable income at. Normal tax is payable by zimbabwean companies on their taxable income at the rate of 25%. Yes, certain proceeds are deemed such as insurance proceeds per capital gains tax act.

Section 44 extension of time for appeal against an assessment, which is similar to the proposed changes to subsection 1001 of the income tax act, 1967. Bonus section 1b of the finance act confirms that the tax free bonus has increased to zwl5 000 usd320. The nexus between section 15 2 t of the income tax act. The zimbabwe revenue authority zimra hereby reminds its valued clients who are registered for value added tax vat. Act to be income derived from a source within zimbabwe, at the. The finance act 30 3 individuals employment income 37 4 pensions and benefit funds 59. Try to understand what may be uncertain with regard to each criterion, and then link this to how this has been clarified by case law, which cases provided that clarity, and what the resulting precedent was. Candidates may take into the examination room an unmarked copy of the income tax act as amended and of the finance act and the capital gains tax act. There are certain deductions which are prohibited in terms of section 16 of the income tax act.

This edition contains a consolidation of the following laws page income tax act 3 act 19 of 1967. Special circumstances in which income is deemed to. Voluntarily wound up companies with effect from 010119. 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. Any company incorporated in zimbabwe shall be entitled to deduct from any dividends on stocks or shares income tax at the rate applicable to a company for the year of assessment immediately preceding the year of as sessment within which the dividend was declared or, if no such rate was applicable, at the rate which was last ap plicable whether in terms of this act or the previous law. Zimbabwe enacted new legislation on transfer pricing with effect from 1 january 2016. Special circumstances in which income is deemed to have accrued. Taxable income 2 the taxable income of a taxpayer for a taxation year is the taxpayer s income for the year plus the additions and minus the deductions permitted by division c. Income tax act and subsidiary legislation revised edition showing the law as at 1 january 2002 this is a revised edition of the law, prepared by the law revision commissioner under the authority of the revised edition of the laws act. This includes business income, rent and zimbabwean and foreign interest other than interest that is. Students are permitted to take in their zxnet amended zimbabwe taxation statutes provided, of course, that no notes or.

This means we work closely with icaz to ensure this study text contains the information. Zimbabwean resident individuals and corporates are subject to tax in zimbabwe on foreign interest and dividends. Tax rates individuals employment income year ended 31 december 2017. Rates of tax and revision thereto are gazetted by the honourable finance minister and stipulated in the fa. The new rules govern domestic transactions between associates as well as transactions with foreign entities. Applied taxation module 1 tax 402 10 for 2018 cta 2 exams property of caa learning media component explanations. It is invaluable to students of zimbabwean tax law. 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. Taxed on income from a zimbabwean source or from a deemed zimbabwean source.

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. From a source in zimbabwe income is not taxable in zimbabwe unless it is from a zimbabwean source or has been deemed to be from a zimbabwean source section 12. Therefore all income that accrues or is deemed to have accrued in zimbabwe is taxed in zimbabwe. Where a loan or an advance is provided by the employer, the employee taxable. We are grateful to the institute of chartered accountants of zimbabwe icaz. Section 18, 19 and 20 not to apply in certain cases 22.

Microsoft office document icon income tax act 2306updated. Foreign dividends are subject to tax at a flat rate of 20%. The income tax act under section 15 2 t allows for a deduction of expenditure incurred by a taxpayer within 18 months of beginning a business provided that. Income tax, revenue, amnesty, special circumstances. Other changes to the income tax act include the following.

Aids levy for 2015 is 3% of the individuals tax payable. Special provisions in connection with income derived from sale of mining claims. Jan 01, 2020 other changes to the income tax act include the following. Finance act, 2018 zimbabwe legal information institute. Zimbabwe income tax kpmg global kpmg international. These latest provisions augment the current antiavoidance sections of the income tax act.

Zimbabwes finance act 2 of 2017 took effect upon its publication government gazette no. Zimbabwe 2019 national budget budget highlights and tax summary. Short title this act may be cited as the income tax act. However, a residence based income tax system is being proposed to come into effect on 1 january 2014. Page 9 of 62 for icaz 2017 cta 1 exams property of caa learning media pension fund have been allowed as a deduction in full in lues tax computation over the years.