Capital gains tax is a tax on the profit made from the sale of an asset, such as a house, shares, or a business. In Zimbabwe, capital gains tax is administered by the Zimbabwe Revenue Authority (ZIMRA).
The capital gains tax rate in Zimbabwe is 20%. However, there are a number of exemptions and deductions that can reduce the amount of tax that a taxpayer owes.
Some of the exemptions that are available to taxpayers include:
- The sale of a principal private residence
- The sale of assets that are used in a business
- The sale of assets that are donated to charity
Some of the deductions that are available to taxpayers include:
- The cost of the asset
- The cost of any improvements to the asset
- The cost of any expenses incurred in the sale of the asset
Taxpayers are required to file an annual capital gains tax return with ZIMRA. The return must show the amount of the gain, the amount of the exemptions and deductions, and the amount of tax due.Taxpayers that are found to be in non-compliance with capital gains tax laws in Zimbabwe may also be subject to criminal prosecution.
Here are some additional information about capital gains tax in Zimbabwe:
- Capital gains tax is a tax on the profit made from the sale of an asset.
- The capital gains tax rate in Zimbabwe is 20%.
- There are a number of exemptions and deductions that can reduce the amount of tax that a taxpayer owes.
- Taxpayers are required to file an annual capital gains tax return with ZIMRA.
- Capital gains tax is a complex area of law, and taxpayers should seek professional advice to ensure that they are complying with the law.
