Withholding taxes are taxes that are withheld by a payer from a payee before the payment is made. The payer is then responsible for remitting the withheld taxes to the tax authority.
Withholding taxes are used in Zimbabwe to collect taxes on a variety of payments, including:
- Interest
- Dividends
- Royalties
- Patent and copyright fees
- Professional fees
- Contract payments
The rate of withholding tax varies depending on the type of payment and the residency of the payee. For example, the withholding tax rate on interest paid to a resident of Zimbabwe is 10%, while the withholding tax rate on interest paid to a non-resident of Zimbabwe is 15%.
Withholding taxes are a way for the tax authority to collect taxes on payments that may otherwise go unreported. They also help to ensure that all taxpayers are paying their fair share of taxes.
Here are some additional information about withholding taxes in Zimbabwe:
- Withholding taxes are a way for the tax authority to collect taxes on payments that may otherwise go unreported.
- They also help to ensure that all taxpayers are paying their fair share of taxes.
- The rate of withholding tax varies depending on the type of payment and the residency of the payee.
- Payers are required to withhold taxes from payments and remit them to the tax authority.
- Payees are entitled to a refund of withholding taxes if they are entitled to a tax credit or refund.
- Withholding taxes are a complex area of law, and taxpayers should seek professional advice to ensure that they are complying with the law.
