The Finance (No. 2) Act, Act No. 7 of 2024 is out and as a complaint business you should take note of the following changes. Lets dive into the changes.
Major 2025 Zimbabwean Tax changes for your business to be aware.
- Review of PAYE tax bands in local currency
- Income Tax exemption of Building Societies to be limited to earnings from mortgage financing only.
- 10% WHT on winnings by betting punters
- 1% Fast foods tax
- 20% Plastic Carrier Bag Tax
- Various operators to register for income tax
- Liquefied Petroleum Gas (LPG) exempt from VAT
- VAT remittance now due 15 days from end of tax period
- Automatic VAT Registration for Tenders above Threshold
- Virtual Fiscalisation System to be extended to SMEs below VAT threshold
- Mining royalties to be payable on any mineral or mineral bearing ore or products
- Deductibility of royalty fees be limited to the lower of 1.5% of the company’s turnover or the comparable transaction thereof
- Accounting of all tax revenues through a Single Account
- Taxpayers to submit tax returns at least 5 days before the payment date.
- Penalty for late submission of returns to US$30 per day.
Amendments to the Finance Act
Section 4A -Payment of certain taxes in foreign currency.
- 2024 2nd QPD
- Amend legislation to provide clarity to the extent that, during the 2024 Second Quarter Payment Date, taxpayers were accorded with the option to pay Corporate Income Tax in both local and foreign currency in line with the proportions of the currency of trade.
Section 4B- Interest Rates charges
- insertion of Bank policy rate
- review from 48hs to 24hrs
- change from 200% to bank policy rate plus 5%
Bookmakers tax and Punters tax
- 3% levied on monthly takings of the bookmaker
- ten per centum of each dollar of the gross winnings of betting punters
2% Levy on gross value of lithium, black granite, quarry stones and uncut and cut dimensional stone.
- The levy on gross value of lithium, black granite, quarry stones and uncut and cut dimensional stone shall be two per centum of the gross value of the sale within Zimbabwe or on export of lithium, black granite, quarry stones and uncut and cut dimensional stone, which levy must be payable in the currency of trade.
Introduction of SOFR for Loan Benefits and
- “SOFR” means the secure overnight financing rate referred to in section 8(1)f II(h), and 97B(2)
