Zimbabwe 2024 New Tax Changes as per Finance Act 13 of 2023.

New Tax changes for Businesses and Individuals should know as per Finance Act 13 of 2023.

Finance Act 13 of 2023 is finally here, and it is packed with the following changes.

Corporate Income Tax

• Corporate Income Tax rate has been revised up to 25%, with effect from (w.e.f) 1 January 2024
• Withholding Tax on Contracts-Payment of less than US$5,000 or ZWL$ equivalence to farmers for the delivery of grain to GMB is exempted from WHT on contracts.
• Intermediated Money Transfer Tax (IMTT) Compensation for the appropriation of agricultural land to person listed in Schedule1 (Commercial Farmers) to the Global Compensation Deed is exempted from IMTT.
• Penalties & Interest-Late payment of the statutory insurance levy by an insurer attracts interest at a rate of 15% per annum (for USD amounts) or 200% per annum (for ZWL payments).
• Statutory Motor Insurance Levy-Statutory Motor Insurance Levy shall be calculated at the rate of US$0,20 on each dollar of the total value of all premiums paid (pursuant to statutory motor insurance policies) to any insurer whose incurred claims ratio in a year of assessment falls below 75%.

Value Added Tax

• Amendment of section 23 of Cap. 23:12 of the VAT Act.
  • With effect from the 1st January, 2024, the Value Added Tax Act [Chapter 23:12] is amended in section 23
  • Registration of persons making supplies in the course of trade
    • VAT registration threshold from US$40 000 to US$25 000 or local currency equivalent with effect from 1 January 2024.
• Amendment of section 8 of Cap. 23:12
  • Amendment in definition of Time of supply for a supply of imported services shall;
    • at the time an invoice is issued by the supplier or the recipient in respect of that supply; or
    • at the time any payment of consideration is received by the supplier in respect of that supply; or
    • at the time the service is performed; whichever time is earlier.

• New section 63A inserted in of Cap. 23:12
  • Offences and penalties in regard to fiscalisation.
    • Failure to comply with Interface Requirements
    • Tampering with Electronic Fiscal Devices
    • Failure to demand Fiscal Invoice/Receipt
    • Failure to deliver, configure or install Electronic Fiscal Device by Approved Supplier
    • Failure to attend to faults
    • Offences where no specific penalty is provided
• New sections 81A and 81B and Schedule inserted in of Cap. 23:12
  • Measures to protect value chain integrity and transparency, and to counter unfair competition by informal traders
    • informal trader to register for income tax and VAT if they want to acquire goods worth more than $1000 or equivalent at prevailing interbank