The Finance Bill, 2024, is a comprehensive legislative document aimed at modifying Zimbabwe’s tax and financial landscape. It introduces significant changes across various tax domains, including income tax, capital gains tax, value-added tax, customs and excise duties, and the role of the Reserve Bank.
Lets take dissect the proposed changes as per Finance Bill of 2024.
Employment Tax.
The Minister proposed the following;
- Review upwards the Bonus-Free Threshold from US$400 to US$700.
- Two tax reviews due to change in currency from RTGS to ZiG.
- period beginning on the 1st of January 2024, and ending on the 4th of April, 2024 (RTGS era).
- period beginning on the 5th April, 2024, and ending on the 31st of December, 2024 (ZiG era).
Corporate Income Tax.
The Minister proposed the following;
- Payment of Provisional tax (QPDs) in foreign currency.
- companies which receive income in foreign currency and estimate that they will earn 50% or more of their income in foreign currency shall remit 50% of the QPD’s in local currency and 50% in foreign currency.
- where a company’s revenue exceeds 50% in local currency, tax shall be payable in the currency of trade.
- 1 August 2024 shall be the effective date.
- Presumptive Taxes
| Description | Current Rates (Monthly) | Proposed Rates (Monthly) |
| Operators of driving schools providing driving tuition for: • Class four vehicles only • Class 1 and class 2 vehicles (whether or not in addition to providing driving tuition for other classes of vehicles) |
USD $300 USD $600 |
USD $50 USD $100 |
| Operators of hairdressing saloons | USD $300 per chair |
USD $30 per chair |
| Informal cross boarder traders | 20% of the value for duty purposes |
20% of the value for duty purposes |
| Operators of restaurants or bottle stores | USD $300 | USD $100 |
| Cottage industry operators | USD $300 | USD $100 |
| Operators of commercial waterborne vessels with a carrying capacity (including cabin crew) of: • less than 5 passengers per vessel • 6 to 15 passengers per vessel • 16 to 25 passengers per vessel • 26 to 49 passengers per vessel • more than 49 passengers per vessel |
USD $80 USD $100 USD $150 USD $200 USD $300 |
USD $30 USD $35 USD $50 USD $70 USD $100 |
| Operators of commercial water borne vessels of a description referred to in paragraph 2(b) of the definition of commercial water borne vessel in the 26th schedule of the Income Tax Act (that is to say, operators of fishing rigs), |
USD $250 | USD $85 |
| Operators of beauty and massage parlours | – | USD $100 |
| Operators of gymnasia or fitness centre | – | USD $100 |
| Operators of butcheries | – | USD $50 |
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- To encourage the use of our Local currency, The Minister has proposed payment of all Presumptive Taxes in local currency, regardless of the currency of trade, the taxpayer has the option to pay the amount of the tax due in United States dollars at the applicable interbank rate at the date of payment.
- Registration of Self employed persons.
- self-employed persons shall comply with section 37C and remit corporate income tax.
| Professional | Regulating Act |
| a) Architects | Architects Act [Chapter 27:01] |
| b) Engineers or technicians | Engineering Council [Chapter 27:22] |
| c) legal practitioners | Legal Practitioners Act [Chapter 27:07] |
| d) Health practitioners | Health Professions Act [Chapter 27:19] |
| e) Real estate agents | Estate Agents Act [Chapter 27: 17] |
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Intermediated Money Transfer Tax
- IMTT rates announced by the Minister are the same as the changes that were previously made through Statutory Instrument 80 of 2024. The changes are as follows:
| Tax | Amount | Rate |
| Fees | $100 | $0.05 USD |
| IMTT (ZIG) | Any Amount | 2% |
| IMTT (ZIG) | Transaction exceeds the equivalent of $500,000 USD |
$10,150 USD (at the prevailing interbank rate) |
| IMTT (USD) | $500,000 USD | $10,150 USD |
| Outbound foreign payments | 2% | |
| Zimbabwe gold backed digital tokens | 2% |
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Automated Financial Transactions Tax
- Withdrawal of local currency equivalent to USD 100 will carry a USD 0.05 charge equivalent in local currency.
- The effective date was proposed to be the 3rd of May 2024.
Capital Gains Tax
The Minister proposed the following;
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- in the case of a sale of a marketable security that is a listed security, 2% of the price at which the security was sold․
- The amount so withheld shall be considered to be the final tax;
- in the case of a sale of a marketable security other than a security referred above, 5% of the price at which the security was sold.
Value Added Tax
The Minister proposed the following;
- Deferment of collection of tax on capital goods.
- in addition to other requirements, the tax payer also be compliant with their tax obligations under all revenue Acts.
