Income which is exempt from Income Tax in Zimbabwe.

Exempt income is income accruing to a business and not taxable. in tax language, Exemptions are accruals and receipts of revenue nature, which are free of income tax. The following receipts are exempt from tax.

Non-Profit Organisation.

Companies not operating for gain and whose objective is that of enhancing the welfare of its members are not taxable on their profits. Such organizations as are of a public character and are meant to benefit members of the society or a sector of the society

• • Church organizations, education institution of a public character.
  • Trade Unions, trusts of a public character.
  • Building societies, benefit funds.
  • CIS, ACCA, ZAAT, IAC ,commercial farmers union, clubs, societies i.e. Cimas

Foreign Governments and World Organisations.

Certain governments of some other countries other than Zimbabwe have been selected as free of Zimbabwean tax.Such organizations have been approved by the minister by a notice in a statutory instrument. Also exempted under the same section are certain world organizations. Among the foreign organization the following are not taxable on profits earned by them.

• • Any agency of any government
  • Any international organization i.e. FAO WHO, UN
  • International financial organization
  • African Development Bank

Dividends from Local Companies

Dividends from any company incorporated in Zimbabwe which is liable to pay tax, are free of income tax in the hands of the recipient. Dividends from companies exempted from paying tax i.e. building societies, benefit funds are taxable in the hands of the recipient.

Interest for Locals

To be exempted is any interest paid on

• • Sums deposited with POSB account
  • Any tax reserve certificate issued by ZIMRA.
  • Any loan raised by the state i.e. treasury bills, agribonds etc
  • Class C permanent shares issued by a building society
  • Interest from a foreign currency account held by an individual other than a company.