30% Withholding Tax on Tenders in Zimbabwe.
Finance Act No. 8 of 2022 FINANCE ACT gazetted on the 24th of October 2022. Withholding Tax on contractors threshold as per amendment of Section 80 of Income Tax.
| Currency | Old | New |
| ZWL | 130,000 | 500,000 |
| USD | 1,000 | 1,000 |
Section 80 the Income Tax Act [Chapter 23:06] amended the definition of “contract” .
Definition of a Contract by the deletion of the words “or more persons an amount or amounts totalling or aggregating one hundred and thirty thousand dollars or more, or where the contract is denominated in foreign currency, one thousand United States dollars or more, but does not include” and the substitution of “or more persons an amount or amounts totalling or aggregating five hundred thousand dollars or more, or where the contract is denominated in foreign currency, one thousand United States dollars or more, over the year of assessment.
As from 24 October 2022, Withholding Tax on tenders or/ contracts is an aggregate threshold is now ZWL500,000 or USD1,000.00 per annum.
