Tax
Source-based income tax at 24.72 per cent with multi-currency reporting
Income tax is source-based, with the corporate rate at 24 per cent plus a 3 per cent AIDS levy giving an effective 24.72 per cent. VAT is 15 per cent. The distinctive administrative feature is multi-currency operation: returns and payments must reflect the currency in which income was earned, following successive currency reforms.
Key rules
- Jurisdiction — ZIMRA assesses; objections to the Commissioner General; appeals to the Special Court for Income Tax Appeals or the Fiscal Appeal Court.
- Deadline — QPDs (quarterly payment dates): 25 March, 25 June, 25 September, 20 December
- Deadline — VAT return: monthly or bi-monthly by category
Governing law
- Income Tax ActChapter 23:06
- Value Added Tax ActChapter 23:12
- Finance Act (Chapter 23:04) — AIDS levy
In practice
The QPD system requires tax to be paid in instalments against estimated annual liability, and the currency-of-earning rule means a single taxpayer may file and pay in both USD and ZiG for the same year — an administrative complexity with no real parallel in the region.