Examining the Major changes brought by Finance Act No 2 of 2024.
Not much was changed from the Finance Bill, H.B. 8, 2024, except fees on some presumptive taxes. It seams the house head the please of thousand informal traders who were not happy with the fees which were charged in the Finance Bill. The following measures should now legally followed by business and individuals.
Employment Tax.
Now legal, under the Finance Act No 2 of 2024 ;
- Bonus-Free Threshold is now $700 from $400
- Two tax reviews due to change in currency from RTGS to ZiG.
- period beginning on the 1st of January 2024, and ending on the 4th of April, 2024 (RTGS era).
- period beginning on the 5th April, 2024, and ending on the 31st of December, 2024 (ZiG era).
Corporate Income Tax.
Now legal, under the Finance Act No 2 of 2024 ;
- Payment of Provisional tax (QPDs) in foreign currency.
- companies which receive income in foreign currency and estimate that they will earn 50% or more of their income in foreign currency shall remit 50% of the QPD’s in local currency and 50% in foreign currency.
- where a company’s revenue exceeds 50% in local currency, tax shall be payable in the currency of trade.
- 1 August 2024 shall be the effective date.
- Intermediated Money Transfer Tax
- IMTT rates are as below as per the finance Act No 2: 2024
| Tax | Amount | Rate |
| Fees | $100 | $0.05 USD |
| IMTT (ZIG) | Any Amount | 2% |
| IMTT (ZIG) | Transaction exceeds the equivalent of $500,000 USD |
$10,150 USD (at the prevailing interbank rate) |
| IMTT (USD) | $500,000 USD | $10,150 USD |
| Outbound foreign payments | 2% | |
| Zimbabwe gold backed digital tokens | 2% |
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Presumptive Taxes
- Major changes from the Finance Bill were witnessed here
| Description | Previous Rates (Monthly) | Proposed Rates (Monthly) |
| Operators of driving schools providing driving tuition for: • Class four vehicles only • Class 1 and class 2 vehicles (whether or not in addition to providing driving tuition for other classes of vehicles) |
USD $300 USD $600 |
USD $50 USD $100 |
| Operators of hairdressing saloons | USD $300 per chair |
USD $5 per chair |
| Informal cross boarder traders | 20% of the value for duty purposes |
20% of the value for duty purposes |
| Informal Traders | 10% of the monthly rentals from which they operate | 10% of the monthly rentals from which they operate |
| Operators of restaurants or bottle stores | USD $300 | USD $35 |
| Cottage industry operators | USD $300 | USD $100 |
| Operators of commercial waterborne vessels with a carrying capacity (including cabin crew) of: • less than 5 passengers per vessel • 6 to 15 passengers per vessel • 16 to 25 passengers per vessel • 26 to 49 passengers per vessel • more than 49 passengers per vessel |
USD $80 USD $100 USD $150 USD $200 USD $300 |
USD $30 USD $35 USD $50 USD $70 USD $100 |
| Operators of commercial water borne vessels of a description referred to in paragraph 2(b) of the definition of commercial water borne vessel in the 26th schedule of the Income Tax Act (that is to say, operators of fishing rigs), |
USD $250 | USD $85 |
| Operators of beauty and massage parlours | – | USD $100 |
| Operators of gymnasia or fitness centre | – | USD $100 |
| Operators of butcheries | – | USD $50 |
