Finance Act

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This is the version of this Act as it was from 23 March 2017 to 13 March 2018. Read the latest available version.

Jurisdiction

Zimbabwe

Citation

Chapter 23:04

Date

Language

English

Type

Legislation

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Finance Act

Chapter 23:04

There are multiple commencements

Provisions	Status
Chapter II, section 24–25, subpart	commenced on 5 July 1965.
Chapter III (section 26–27)	commenced on 23 February 1966.
Chapter IV, section 28–31, subpart; Chapter V (section 32–33)	commenced on 1 April 1967.
Chapter VI (section 34–35)	commenced on 1 February 1968.
Chapter VII (section 36–37A)	commenced on 6 September 1968.
Chapter VIII (section 37AA–39A)	commenced on 1 August 1981.
Chapter I, Part I (section 4–4A); Part II (section 5–13); Part III, section 14(1), 14(2)(a)(i), 14(2)(a)(ii), 14(2)(a)(iii), 14(2)(a)(iv), 14(2)(a)(v), 14(2)(a)(vi), 14(2)(a)(vii), 14(2)(b), 14(2)(b1), 14(2)(c), 14(2)(d), 14(2)(e), 14(2)(f), 14(2)(g), 14(2)(h), 14(2)(i), 14(2)(j), 14(3), 14(4), 14(5), 14(6), 14(7), 14(8), section 15, section 16–22L; Part IV (section 23)	commenced on 1 April 1988.
Section 1–3; Chapter I, Part III, section 14(2)(a)(vii); Chapter II, item (a)–(t); Chapter IV, paragraph (a)–(d); Chapter IX (section 40–41); Chapter X (section 42–46); Chapter XI (section 45–48); Chapter XII (section 48–49)	not yet commenced.

[This is the version of this document as it was at 23 March 2017 to 13 March 2018.]
[Note: This version of the Act was revised and consolidated by the Law Development Commission of Zimbabwe]

[Acts 30/1965, 4/1966, 41/1966, 56/1966 (s. 7), 65/1966, 4/1967 (s. 35), 6/1967, 29/1967 (s. 32), 35/1967, 30/1968, 37/1968, 10/1969, 36/1969 (s. 3), 39/1969, 49/1969 (ss. 16-19), 58/1969, 10/1970, 21/1970, 23/1970 (s. 56), 32/1970, 43/1970, 6/1971 (s. 67), 41/1971, 42/1971 (s. 4), 1/1972 (s. 91), 20/1972, 33/1972 (s. 18), 8/1973 (Part 1), 21/1973, 27/1973 (s. 102), 23/1974, 32/1975, 38/1976, 22/1976 (ss. 2 and 3), 16/1977, 27/1977, 12/1978 (s. 4), 23/1978, 35/1978, 22/1979, 1/1980, 11/1980, 10/1981, 55/1981, 30/1982, 19/1983, 32/1983, 7/1984, 24/1984, 19/1985, 20/1986, 17/1987, 4/1988, 16/1988, 22/1989, 10/1990, 19/1990, 21/1991, 17/1992, 12/1993, 19/1994, 4/1995, 17/1995, 23/1995, 4/1996, (modified by SI 94/1996), 10/1996 (modified by SI 94/1996), 13/1996, 17/1997, 23/1997, 29/ 1998, 9/1999, 21/1999, 22/1999, 18/2000, 27/2001, 12/2002, 14/2002, 15 /2002, 10/2003,16/2004, 17/2004, 18/2004, 29/2004, 2/2005, 8/2005, 6/2006, 12/2006, 8/2007, 16/2007, 3/2009, 5/2009, 10/2009, 3/2010, 5/2010, 8/2011, 9/2011, 1/2014, 6/2012, 8/2014, 11/2014, 8/2015, 9/2015, 2/2017. SIs. 136/2007, 46A/2008, 63/2008, 90/2008, 111/2008, 132/2008, 133/2008, 149/2008, 166/2008, 45/2009, 91/2009, 149/2009.]AN ACT to make provision for the revenues and public funds of Zimbabwe and to provide for matters connected therewith or incidental thereto.

1. Short title

This Act may be cited as the Finance Act [Chapter 23:04].

2. Interpretation

(1)In this Act—

(a)any reference to a Chapter shall be construed as a reference to a Chapter of this Act;

(b)any reference to a Schedule shall be construed as a reference to a Schedule to the Chapter in which the reference appears.

(2)Subsection (4) of section 10 of the Interpretation Act [Chapter 1:01] shall apply in construing this Act as if the definition of “division” in that subsection included a Chapter of this Act.

2A. Meaning of small or medium enterprise or business

(1)In this section, a “Scheduled Act” means this Act or any of the other Acts specified in the First Schedule (‘the Scheduled Acts”) to the Revenue Authority Act [Chapter 12:11] (No. 17 of 1999).

(2)For the purposes of any Scheduled Act, a reference to a “small enterprise”, “small business”, “medium-sized enterprise”, “medium-sized business”, “small or medium enterprise”, “small or medium sized enterprise, “small or medium enterprise”, or “small or medium sized business” shall bear the meaning assigned to any identical or related term in the Small and Medium Enterprises Act [Chapter 24:12] or any other law that may be substituted for the same.[section inserted by Act 8 of 2011]

2B. ***

[section repealed by Act 8 of 2011]

3. Regulations

(1)The Minister responsible for finance may make such regulations as he or she may consider necessary or expedient for the administration of this Act and the better carrying out of its purposes.

(2)Regulations made in terms of subsection (1) may amend or replace any rate of tax, duty, levy or other charge that is charged or levied in terms of any Chapter of this Act, and the rate as so amended or replaced shall, subject to subsection (3), accordingly be charged, levied and collected with effect from the date specified in such regulations, which date shall not be earlier than the date the regulations are published in the Gazette.

(3)If any provision contained in regulations referred to in subsection (2) is not confirmed by a Bill which—

(a)passes its second reading stage in Parliament on one of the twenty-eight days on which Parliament sits next after the coming into operation of the instrument; and

(b)becomes law not later than six months after the date of such second reading;

that provision shall become void as from the date specified in the instrument as that on which the rate of tax, duty, levy or other charge shall be amended or replaced, and so much of the rate of tax, duty, levy or other charge as was amended or replaced, as the case may be, by that provision shall be deemed not to have been so amended or replaced.[subsection substituted by Act 8 of 2007]

Chapter I
Income tax and other taxes levied in terms of the Income Tax Act

Part I – Preliminary

4. Interpretation in Chapter I

(1)In this Chapter—“blind person” means a person whose eyesight is so defective during more than half of the period of assessment that he is unable to perform any work for which eyesight is essential;“Exchange Control (General) Order” means the Exchange Control (General) Order, 1996, published in Statutory Instrument 110 of 1996, or any other enactment that may be substituted for the same;[definition inserted by section 2 of Act 3 of 2009]“family taxpayer” [definition repealed by section 2 of Act 13 of 1996]“foreign currency” means the euro, United States dollar, British pound, South African rand, Botswana pula and any other foreign currency denominated under the Exchange Control (General) Order;[definition inserted by section 2 of Act 3 of 2009]“period of assessment” means—

(a)the year of assessment; or

(b)the period within or deemed by the Taxes Act to be within the year of assessment in respect of which an assessment is made in terms of the Taxes Act;

as the case may be;“specified amount” means the appropriate amount specified in Part I of the Schedule in respect of the year of assessment concerned;“specified percentage” means the appropriate percentage specified in Part II of the Schedule in respect of the year of assessment concerned;“taxable income from trade or investment received or accrued in foreign currency” means taxable income from trade or investment received or accrued in United States dollars or, if such income is denominated in a foreign currency other than the United States dollar, the equivalent amount in United States dollars, being an amount obtained by applying the international cross rate of exchange of that currency for the United States dollar prevailing on the day the income is received or accrued;[definition inserted by section 2 of Act 3 of 2009]“taxable income from employment earned in foreign currency” means taxable income from employment earned in United States dollars or, if such income is denominated in a foreign currency other than the United States dollar, the equivalent amount in United States dollars, being an amount obtained by applying the international cross rate of exchange of that currency for the United States dollar prevailing on the day the income is earned;[definition inserted by section 2 of Act 3 of 2009]“Taxes Act” means the Income Tax Act [Chapter 23:06];“taxpayer” means any person in respect of whom an assessment is made in terms of the Taxes Act.

(2)For the purposes of this Chapter—

(a)an expression to which a meaning is assigned in subsection (1) of section 2 or in subsection (1) of section 8 of the Taxes Act shall have the same meaning in this Chapter, unless the expression is otherwise defined in this Chapter;

(b)subsections (2) and (3) of section 2 and section 4 of the Taxes Act shall be deemed to be contained in this Chapter.

4A. Payment of certain taxes in foreign currency

(1)Notwithstanding section 41 of the Reserve Bank of Zimbabwe Act [Chapter 22:15] and the Exchange Control Act [Chapter 22:05]—

(a)a person other than a company, a trust or a pension fund whose taxable income from employment is earned in whole or in part in a foreign currency shall pay tax in the same or another specified foreign currency on so much of that income as is earned in that currency;

(b)a person other than a company, a trust or a pension fund whose taxable income from trade or investment is received or accrued in whole or in part in a foreign currency shall pay tax in the same or another specified foreign currency on so much of that income as is received or accrued in that currency;

(c)a company, trust, pension fund or other juristic person whose taxable income is earned, received or accrued in whole or in part in a foreign currency shall pay tax in the same or another specified foreign currency on so much of that income as is earned, received or accrued in that currency;

(d)a person who is liable to presumptive tax as a small scale miner, an operator of a taxicab, omnibus, goods vehicle, driving school or hair dressing salon, or as an informal cross-border trader, in terms of section 22C (b) and (c), (d), (e), (f), (g), (h), (i), (j) or (k), shall pay that presumptive tax in a foreign currency;[paragraph amended by Act 5 of 2009]

(e)the persons specified in section 22E and 22H shall pay the taxes there mentioned in a foreign currency;

(f)the persons specified in section 15, 17, 18, 19, 20, 21, 22, 22A, 22B, 22F, 22G, 22L and 22J shall pay the taxes there mentioned in a foreign currency to the extent that the amounts from which the taxes are withheld are foreign currency amounts.

(2)Where only part of the taxable income from employment of a person referred to in subsection (1)(a) is paid in a foreign currency, the amounts of any tax due on both parts of such income in terms of section 14 shall be calculated separately and paid in the appropriate currency relative to each part.

(3)Where a person referred to in subsection (1)(a) earns any part of his or her taxable income in the form of a coupon or any instrument or token that, in the opinion of the Commissioner, is exchangeable, whether directly or indirectly, for foreign currency, that person shall pay an amount of tax to the Commissioner in foreign currency calculated on a valuation of that coupon, instrument or token which, in the opinion of the Commissioner, represents a fair valuation of that coupon, instrument or token in foreign currency.

(4)For the purposes of subsection (3) the Commissioner may, in the case of any coupon, instrument or token denominated in units of weight, volume or other measure of a specified commodity, specify from time to time by notice in the Gazette that a unit by weight, volume or other measure of that commodity shall be deemed to be worth a specified amount of a foreign currency.

(5)If the Commissioner has reasonable grounds to believe that the whole or any part of the income of a person referred to in subsection (1)(b) or (c) was received or accrued in the form of foreign currency, or that any amount referred to in subsection (1)(f) from which a person withholds tax is a foreign currency amount, and that the person—

(a)has prepared or maintained or authorised the preparation or maintenance of any false books of account or other records, or falsified or authorised the falsification of any books of account or records; or

(b)has furnished a false return or information;

with the effect that liability for payment of any tax in foreign currency is avoided or postponed, the Commissioner may deem that—

(c)the whole of such person’s income from trade or investment is received or accrued in foreign currency;or

(d)the whole of the amount from which the person withholds tax is a foreign currency amount;

as the case may be, unless, in respect of any particular transaction, such person proves to the satisfaction of the Commissioner that the income received or accrued in respect of that transaction was received or accrued in Zimbabwean currency, or that the amount in question is a Zimbabwean currency amount.

(6)The liability of a person referred to in subsection (1)(b) or (c) to pay any tax in foreign currency is not affected by that person’s failure to comply with any law (including but not limited to the Shop Licences Act [Chapter 14:17] and the Exchange Control Act [Chapter 22:05]) requiring the registration or licensing of the trade, investment or other activity by means of which his or her income is received or accrued.

(7)For the avoidance of doubt it is declared that all the provisions of the Taxes Act shall apply, with such changes as may be necessary, to the payment in foreign currency of the taxes referred to in subsection (1)(a), (b), (c), (d), (e) and (f) in the same way as they apply to the payment of such taxes in Zimbabwean currency.In particular—

(a)section 37B, relating to the duty to keep records, shall apply so that records of those transactions involving payments in foreign currency—

(i)are clearly distinguished from records of transactions involving Zimbabwean currency; and

(ii)employ the foreign currency concerned as the unit of account in relation to those transactions involving payments in that foreign currency;

(b)section 48 of the Taxes Act, relating to reduced assessments and refunds, shall apply so that any part of a tax paid in foreign currency that is required to be refunded shall be refunded in foreign currency;

(c)section 71, providing (among other things) for the payment of interest on unpaid tax, shall apply so that any interest due on any part of a tax payable in foreign currency that is unpaid, shall be paid in foreign currency.

(8)The Commissioner may require any person referred to in subsection (1)(c), (d), (e) or (f) who tenders payment of any tax in a foreign currency other than the United States dollar, to tender instead the equivalent amount of that tax in United States dollars, being an amount obtained by applying the international cross rate of exchange of the first-mentioned currency for the United States dollar prevailing on the day the tax concerned becomes due.[section inserted by section 3 of Act 3 of 2009]

Part II – Credits to be deducted from income tax

5. Credits to which section 7 of Taxes Act relates

(1)Subject to this Part and to section 50 of the Taxes Act, the credits to be deducted from the income tax with which a person is chargeable in pursuance of section 7 of that Act shall—

(a)if the period of assessment is twelve months, be the credits for which provision is made in this Part;

(b)if the period of assessment is less than twelve months, be—

(i)the credit for which provision is made in section ten, reduced proportionately; and

(ii)the credits for which provision is made in sections eleven, twelve and thirteen.

(2)Notwithstanding any other provision of this Act, the total amount of credits to be deducted in terms of—

(a)[paragraph repealed by section 3(b) of Act 13 of 1996]

(b)[subparagraph repealed by section 2(b)(ii) of Act 17 of 1997]

(c)[subparagraph repealed by section 2(b)(ii) of Act 17 of 1997]

(d)any provision of this Part from the income tax with which any person is chargeable in any year of assessment shall not exceed the total income tax with which that person is chargeable in respect of that year of assessment.

(3)Notwithstanding any other provision of this Act, no credit shall be deducted from the income tax with which a company or trust is chargeable in any year of assessment.

(4)The credits to be deducted from the tax with which a person is chargeable in pursuance of section 7 of the Taxes Act shall be expressed as amounts in United States dollars:Provided that where the tax with which a person is chargeable in pursuance of section 7 of the Taxes Act is not payable wholly or in part in foreign currency, the amount of the appropriate credit shall be converted to Zimbabwean dollars using such rate as the Minister shall prescribe generally or for the purpose of this subsection.[subsection inserted by section 5 of Act 3 of 2009]

6. ***

[section repealed by Act 13 of 1996]

7. ***

[section repealed by Act 17 of 1995]

8. ***

[section repealed by Act 17 of 1995]

9. ***

[section repealed by Act 17 of 1995]

10. Taxpayers over 55 years of age

A credit of the specified amount shall be deducted from the income tax with which a taxpayer is chargeable, where he or she had attained the age of fifty-five years prior to the commencement of the year of assessment.Provided that, if the period of assessment is less than twelve months, the amount referred to in this section shall be reduced proportionately.[section substituted by Act 10 of 2009]

11. Blind persons

A credit of the specified amount shall be deducted from the income tax with which a taxpayer who is a blind person is chargeable:Provided that any portion of such credit which is not applied in reduction of the income tax with which a blind person who is married is chargeable shall be allowed as a deduction from the income tax with which his or her spouse is chargeable.

12. Invalid appliances and medical expenses

(1)In this section—“invalid appliance or fitting” includes—

(a)a wheelchair or any mechanically propelled vehicle which is specially designed and constructed for the carriage of one person, being a person suffering from a physical defect or disability; or

(b)any artificial limb, leg calipers or crutch; or

(c)any special fitting for the modification or adaptation of a motor vehicle, bed, bathroom or toilet to enable its use by a person suffering from a physical defect or disability; or

(d)spectacles or contact lenses;

“medical expenses” means—

(a)the sum of any payments made for the purchase, hire, repair, modification or maintenance of any invalid appliance or fitting which the Commissioner is satisfied is necessary for use by a taxpayer or his spouse or any child or the taxpayer as a consequence of any mental or physical defect or disability; and

(b)the sum of any payments made for—

(i)services rendered to a taxpayer, his spouse and minor children or one or more of them by a medical or dental practitioner; and

(ii)drugs and medicines supplied to a taxpayer, his spouse and minor children or one or more of them on the prescription of a medical or dental practitioner; and

(iii)the accommodation, maintenance, nursing and treatment, including blood transfusions and X-ray and laboratory examinations, tests and the like, of a taxpayer, his spouse and minor children or one or more of them in or at a hospital, maternity-home, nursing-home, sanatorium, surgery, clinic or similar institution; and

(iv)the conveyance by ambulance, including an air ambulance, of a taxpayer, his spouse and minor children or one or more of them;

and

(c)the amount of any contributions paid to a medical aid society in respect of the taxpayer or his spouse or any minor children.

(2)Subject to subsection (4), a credit to be determined in accordance with subsection (3) shall be deducted from the income tax with which a taxpayer is chargeable in respect of payments which the taxpayer made in the period of assessment by way of medical expenses.

(3)The amount of the credit deductible in terms of subsection (2) shall be calculated at the rate of one dollar for every two dollars paid by way of medical expenses.[subsection amended by Act 29 of 1998]

(4)No credit shall be deducted in terms of subsection (2) in respect of any payment such as is referred to in paragraph (a) or (b) of the definition of “medical expenses” in subsection (1) if the taxpayer is not at any time during the period of assessment ordinarily resident in Zimbabwe.

(5)For the purposes of this section—

(a)a payment made from the deceased estate of a taxpayer by way of medical expenses which are incurred before the death of the deceased shall be treated as having been made immediately before the death of the deceased; and

(b)a taxpayer shall not be treated as having made a payment by way of medical expenses to the extent that the taxpayer, his spouse or dependant is entitled to a refund or payment from any source whatsoever in connection with the medical expenses to meet which the payment was made.

(6)The provisions of the Taxes Act relating to objections or appeals shall apply, mutatis mutandis, in respect of any decision made by the Commissioner in terms of this section.

13. Mentally or physically disabled persons

(1)Subject to this section, a credit of the specified amount shall be deducted from the income tax with which a taxpayer is chargeable, where it is proved to the satisfaction of the Commissioner that the taxpayer is mentally or physically disabled to a substantial degree, but is not blind.

(2)Subject to this section, a credit of the specified amount shall be deducted from the income tax with which a taxpayer, other than a married woman, is chargeable in respect of each child of the taxpayer who is proved to the satisfaction of the Commissioner to be mentally or physically disabled to a substantial degree.

(3)Any portion of a credit deductible in terms of subsection (1) or (2) which is not applied in reduction of the income tax with which a married person is chargeable shall be allowed as a deduction from the income tax with which his or her spouse is chargeable.

(4)No credit shall be deductible in terms of subsection (1) or (2) if the taxpayer is not at any time in the period of assessment ordinarily resident in Zimbabwe.

(5)A person shall not be regarded for the purposes of subsection (1) or (2) as being mentally or physically disabled if his disablement is of a temporary or transitional nature.

(6)The provisions of the Taxes Act providing for objections or appeals shall apply, mutatis mutandis, in respect of any decision made by the Commissioner in terms of this section.

Part III – Rates of income tax and other taxes levied in terms of the Income Tax Act

14. Income tax for periods of assessment after 1.1.10

(1)In this section—“approved BOOT or BOT arrangement” means a contract or other arrangement approved by the Commissioner, under which a person undertakes to construct an item of infrastructure for the State or a statutory corporation in consideration for the right to operate or control it for a specified period, after which period he or she will transfer or restore ownership or control of the item to the State or the statutory corporation concerned;“approved tourist development zone” means a tourist development zone declared under regulations made in terms of section 57(2)(k) of the Tourism Act [Chapter 14:20] and approved by the Commissioner;“Authority” means the Zimbabwe Tourism Authority established in terms of the Tourism Act [Chapter 14:20];“company” or “trust”, is deemed to include a reference to any ecclesiastical, charitable or educational institution to the extent that any part of the income of such institution is derived from trade or investment, not being income from trade or investment that is exempt from tax in terms of paragraph 2(e) of the Third Schedule to the Taxes Act;[definition inserted by Act 8 of 2015]“contractor”, in relation to an approved BOOT or BOT arrangement, means the person who enters into the arrangement with the State or the statutory corporation concerned;“licensed investor” means a person licensed under the Export Processing Zones Act [Chapter 14:071] before its repeal by the Zimbabwe Investment Authority Act [Chapter 14:30] (No. 4 of 2006) on the 1st January, 2007;[definition inserted by Act 3 of 2010]“manufacturing operations” means any process of production which substantially changes the original form of, or substantially adds value to, the thing or things constituting the product;“operator” and “tourist facility” have meanings given to those terms in section 2 of the Tourism Act [Chapter 14:20];“taxable income from employment” means any part of the taxable income of a person, other than a company, a trust or a pension fund, which consists of remuneration as defined in the Thirteenth Schedule to the Taxes Act;“taxable income from trade or investment” means any part of the taxable income of a person, other than a company or a trust, which is received by or accrues to him or her from any trade, investment or other activity, but does not include taxable income from employment;“trust” does not include a deceased or insolvent estate or the estate of an individual under a legal disability.

(2)Subject to this section and section 50 of the Taxes Act, the income tax with which a person is chargeable in the year of assessment beginning on the 1st January 2010, or any subsequent year of assessment, shall be calculated—

(a)the case of a person other than a company, a trust or a pension fund, at the specified percentage of each dollar of each of the following parts of his or her taxable income from employment earned in foreign currency—

(i)so much as does not exceed three thousand six hundred United States dollars;

(ii)so much as exceeds three thousand six hundred United States dollars but does not exceed eighteen thousand United States dollars;

(iii)so much as exceeds eighteen thousand United States dollars but does not exceed thirty-six thousand United States dollars;

(iv)so much as exceeds thirty-six thousand United States dollars but does not exceed sixty thousand United States dollars;

(v)so much as exceeds sixty thousand United States dollars but does not exceed one hundred and twenty thousand United States dollars;

(vi)so much as exceeds one hundred twenty thousand United States dollars but does not exceed one hundred and eighty thousand United States dollars;

(vii)so much as exceeds one hundred and eighty thousand United States dollars but does not exceed two hundred and forty thousand United States dollars;

(vii)so much as exceeds two hundred and forty thousand United States dollars.[Please note: numbering as in original.][with effect from 1 January, 2015 as amended by Act 11 of 2014]

(b)in the case of a company or a trust, other than a pension fund, at the specified percentage of each United States dollar of its taxable income earned in foreign currency, other than income referred to in paragraph (e), (h) or (i);[paragraph substituted by Act 11 of 2014]

(b1)in the case of a person other than a company, a trust or a pension fund, who is the holder of a temporary employment permit issued in terms of the Immigration Act [Chapter 4:02] in respect of his or her employment with a licensed investor having a qualifying degree of export-orientation as defined in section 2 of the Taxes Act, at the specified percentage of each United States dollar of his or her taxable income from that employment;[paragraph inserted by Act 2 of 2017]

(c)in the case of a company or a trust, other than a pension fund, at the specified percentage of each United States dollar of its taxable income earned in foreign currency, other than income referred to in paragraph (e), (f), (g), (h) or (i);

(d)in the case of a pension fund, at the specified percentage of each United States dollar of its taxable income earned in foreign currency from trade or investment:Provided that this paragraph shall not apply in respect of any period before the date specified in terms of paragraph 2(i) of the Third Schedule to the Taxes Act;

(e)in respect of that part of the taxable income of a licensed investor having a qualifying degree of export-orientation as defined in section 2 of the Taxes Act which is attributable to the operations to which its investment licence relates, for the first five years after the commencement of the operation, at the percentage of each dollar of that income specified in Part II of the Schedule in respect of those years;[paragraph substituted by Act 2 of 2017]

(f)in respect of that part of the taxable income earned in foreign currency of the holder of a special mining lease which is attributable to special mining lease operations as defined in the Taxes Act, determined in accordance with the Twenty-Second Schedule to that Act, at the specified percentage of each United States dollar of that income;

(g)in respect of that part of the taxable income of a company or a trust derived from mining operations, at the specified percentage of each United States dollar of such part of its taxable income;

(h)in respect of that part of the taxable income of a contractor under an approved BOOT or BOT arrangement which is attributable to his or her operations under the arrangement—

(i)for the first five years after the commencement of the arrangement, at the percentage of each United States dollar of that income specified in Part II of the Schedule in respect of those years;

(ii)for the second five-year period after the commencement of the arrangement, at the percentage of each United States dollar of that income specified in Part II of the Schedule in respect of that period;

(iii)thereafter, at the specified percentage applicable to persons referred to in paragraph (b) or (c), as the case may be;

(i)in respect of that part of the income earned in foreign currency of an industrial park developer which is attributable to the operations of his or her industrial park, at the specified percentage of each United States dollar of that income in the year of assessment in which he or she commences such operations before the year of assessment beginning on the 1st January, 2010, and in each of the four years of assessment next following that year of assessment, and thereafter at the higher specified percentage;

(j)in respect of that part of the taxable income earned in foreign currency of the operator of a tourist facility in an approved tourist development zone which is attributable to his or her operation of that facility, at the specified percentage of each United States dollar of that income in the year of assessment in which he or she commences such operation before the year of assessment beginning on the 1st January, 2010, and in each of the four years of assessment next following that year of assessment, and thereafter at the higher specified percentage;[paragraphs (i) and (j) substituted by Act 3 of 2010]

(3)Where a company conducts manufacturing operations and, in any year of assessment, the following percentages of its total manufacturing output is exported from Zimbabwe—

(a)more than thirty per centum but less than forty-one per centum ; or

(b)more than forty-one per centum but less than fifty-one per centum; or

(c)more than fifty-one per centum;

the income tax with which the company is chargeable, in respect of so much of its taxable income as, in the opinion of the Commissioner, is derived from manufacturing operations conducted in Zimbabwe during that year of assessment, shall be at the specified percentage of each United States dollar of the taxable income derived from such manufacturing.[subsection substituted by Act 11 of 2014]

(4)For the purposes of subsection (3) percentages of a company’s manufacturing output shall be calculated by quantity or volume rather than according to value.

(5)Subject to subsection (6) and to section 50 of the Taxes Act, if in the year of assessment beginning on the 1st April, 1988, or any subsequent year of assessment, the taxable income of a person, other than a company or a trust, includes—

(a)any amount referred to in proviso (iv) to paragraph (b) of the definition of “gross income” in section 8(1) of the Taxes Act; or

(b)any amount included by virtue of paragraph (c) of the definition of “gross income” in section 8(1) of the Taxes Act; or

(c)any amount referred to in paragraph 5 of the Seventh Schedule to the Taxes Act;

the income tax with which that person is chargeable in respect of that year of assessment shall be calculated—

(d)in respect of so much of the taxable income as would remain had the amount specified in paragraph (a), (b) or (c), as the case may be, not been included (hereinafter called “the first amount”), at the appropriate rates referred to in subsection (2)(a); and

(e)in respect of each dollar of so much of the taxable income as would remain were the first amount deducted, at the highest rate at which any part of the first amount is chargeable:

Provided that, if the first amount consists of taxable income from employment and does not exceed the amount referred to in subparagraph (i) of subsection(a), then so much of the person’s taxable income as exceeds that second-mentioned amount shall be chargeable at the rate applicable to the amounts referred to in sub-paragraph (ii) of subsection (2)(a).

(6)If in the year of assessment beginning on the 1st January 2010, or any subsequent year of assessment, the taxable income of a person includes any amount by way of dividends from a company incorporated outside Zimbabwe, that amount—

(a)shall be charged to tax at the specified percentage; and

(b)shall be deducted from the person’s taxable income prior to the application of subsections (2), (3), (4) and (8) to that income:

(7)In respect of the year of assessment beginning on the 1st January, 2010, and any subsequent year of assessment, there shall be charged, in the case of a person other than a company or trust, an AIDS levy equal to three per centum of the amount of income tax with which he or she is chargeable in terms of subsection (2)(a) or (b) in respect of that year of assessment, after the deduction of any credits that are to be deducted under Part II of this Chapter, and the levy shall be payable in addition to the income tax with which the person is chargeable under this section.

(8)In respect of the year of assessment beginning on the 1st January, 2010, and any subsequent year of assessment, there shall be charged, in the case of a company or trust, an AIDS levy equal to three per centum of the amount of income tax with which the company or trust is chargeable in terms of subsection (2)(c) in respect of that year of assessment, and the levy shall be payable in addition to the income tax with which the company or trust is chargeable under this section.[section substituted by Act 10 of 2009]

15. Non-resident shareholders’ tax

The non-resident shareholders’ tax chargeable in terms of section 26 of the Taxes Act shall be calculated—

(a)in the case of a dividend distributed from a security which, on the date of distribution, is listed in the official list kept by a registered securities exchange in terms of the Securities Exchange Act [Chapter 24:25], at the rate of ten per centum;[paragraph amended by Act 17 of 2004 and Act 10 of 2009]

(b)in the case of any other dividend, at the rate of fifteen per centum;

of each dollar of the dividend from which the tax is to be withheld and paid in terms of the Ninth Schedule to the Taxes Act.[paragraph amended by Act 10 of 2009 and repealed by Act 29 of 1998]

16. ***

[section repealed by Act 29 of 1998]

17. Resident shareholders’ tax

The resident shareholders’ tax chargeable in terms of section 28 of the Taxes Act shall be calculated—

(b)in the case of any other dividend, at the rate of fifteen per centum;

of each dollar of the dividend from which the tax is to be withheld and paid in terms of the Fifteenth Schedule to the Taxes Act.[paragraph amended by Act 10 of 2009]

18. ***

[section repealed by Act 5 of 2009]

19. Non-residents’ tax on fees

The non-residents’ tax on fees chargeable in terms of section 30 of the Taxes Act shall be calculated at the rate of fifteen per centum of each dollar of the fees from which such tax is to be withheld and paid in terms of the Seventeenth Schedule to that Act.[section amended by Act 10 of 2009]

20. Non-residents’ tax on remittances

The non-residents’ tax on remittances chargeable in terms of section 31 of the Taxes Act shall be calculated at the rate of fifteen per centum of each dollar of the remittance from which such tax is to be paid in terms of the Eighteenth Schedule to that Act.[section amended by Act 3 of 2010]

21. Non-residents’ tax on royalties

The non-residents’ tax on royalties chargeable in terms of section 32 of the Taxes Act shall be calculated at the rate of fifteen per centum of each dollar of the royalty from which such tax is to be withheld and paid in terms of the Nineteenth Schedule to that Act.[section amended by Act 10 of 2009]

22. Residents’ tax on interest

The residents’ tax on interest chargeable in terms of section 34 of the Income Tax Act shall be calculated at the rate of—

(a)fifteen per centum of each dollar of the interest from which such tax is to be withheld and paid in terms of the Twenty-First Schedule to the Income Tax Act, in the case where the interest is earned on a fixed-term deposit with a tenure of at least ninety days; or

(b)fifteen per centum of each dollar of the interest from which such tax is to be withheld and paid in terms of the Twenty-First Schedule to the Income Tax Act, in every other case.

[section substituted by Act 6 of 2012]

22A. Tobacco levy

The tobacco levy chargeable in terms of section 36A of the Taxes Act shall be calculated in respect of—

(a)buyers of auction and contract tobacco at the rate of 1,50 cents of each dollar;

(b)sellers of auction and contract tobacco at the rate of 0,75 cents of each dollar;

of the price from which the levy is to be withheld and paid in terms of the Twenty-Fourth Schedule to that Act.[section substituted by Act 11 of 2014 and amended by Act 9 of 2015]

22B. Automated financial transactions tax

The automated financial transactions tax chargeable in terms of section 36B of the Taxes Act shall be calculated at the rate of zero comma zero five United States dollars for each transaction on which the tax is payable.[section inserted by Act 13 of 1996 and amended by Act 16 of 2007, s.i 149 of 2008 and Act 5 of 2009]

22C. Presumptive tax

The presumptive tax chargeable in terms of section 36C of the Taxes Act shall be in the case of—

(a)informal traders, calculated at the rate of ten per centum of each dollar of the rent upon which the tax is chargeable in terms of the Twenty-Sixth Schedule to the Taxes Act;

(b)small-scale miners, calculated at the rate of zero per centum of each dollar of the purchase-price of precious metals or precious stones upon which the tax is chargeable in terms of the Twenty-Sixth Schedule to the Taxes Act; or

(c)operators of taxicabs for the carriage of passengers for hire or reward having seating accommodation for not more than seven passengers, twenty-five dollars per month for each such taxicab so operated; or

(d)operators of omnibuses for the carriage of passengers for hire or reward having seating accommodation for not less than eight or more than fourteen passengers, forty dollars per month for each such omnibus so operated; or

(e)operators of omnibuses for the carriage of passengers for hire or reward having seating accommodation for not less than fifteen or more than twenty-four passengers, forty-five dollars per month for each such omnibus so operated; or

(f)operators of omnibuses for the carriage of passengers for hire or reward having seating accommodation for not less than twenty-five or more than thirty-six passengers, seventy dollars per month for each such omnibus so operated; or

(g)operators of omnibuses for the carriage of passengers for hire or reward having seating accommodation for not less than thirty-seven passengers, one hundred dollars per month for each such omnibus so operated; or

(h)operators of goods vehicles having a carrying capacity—

(i)of more than ten tonnes but less than twenty tonnes two hundred dollars per month;

(ii)of ten tonnes or less but which is driving one or more trailers resulting in a combined carrying capacity of more than fifteen tonnes but less than twenty tonnes, five hundred dollars per month;

(iii)of twenty tonnes or more, five hundred dollars per month;

(i)operators of driving schools providing driving tuition

(i)for class 4 vehicles only, one hundred dollars per month;

(ii)for class 1 and 2 vehicles (whether or not in addition to providing driving tuition for other classes of vehicles), one hundred and thirty dollars per month;

(j)operators of hairdressing salons, ten dollars per chair per month; or

(k)informal cross-border traders, ten per centum of the value for duty purposes of the commercial goods being imported by the traders concerned; or

(l)operators of restaurants or bottle-stores, seventy dollars per month; or

(m)cottage industry operators, seventy dollars per month: or

(n)operators of commercial waterborne vessels of a description referred to in paragraph 2(a) of the definition of “commercial waterborne vessel” in the Twenty-Sixth Schedule of the Taxes Act, having a carrying capacity (inclusive of cabin crew)—

(i)of not more than five passengers, sixty dollars per month per vessel;

(ii)of six passengers but less than sixteen passengers, one hundred dollars per month per vessel;

(iii)of sixteen passengers but less than twenty-six passengers, two hundred dollars per month per vessel;

(iv)of more than twenty-six passengers but less than fifty passengers, three hundred and fifty dollars per month per vessel;

(v)of fifty or more passengers, four hundred and fifty dollars per month per vessel;

(o)operators of commercial waterborne vessels of a description referred to in paragraph 2(b) of the definition of “commercial waterborne vessel” in the Twenty-Sixth Schedule of the Taxes Act (that is to say, operators of fishing rigs), eighty dollars per month.[section substituted by Act 2 of 2017]

22D. Demutualisation levy

The demutualisation levy chargeable in terms of section 36D of the Taxes Act shall be calculated, in respect of each Zimbabwean member of the mutual society concerned, at the rate of two and one-half per centum of the amount upon which the levy is payable in terms of paragraph 2 of the Twenty-Seventh Schedule to the Taxes Act.[section inserted by Act 22 of 1999]

22E. Carbon tax

(1)The carbon tax chargeable in terms of section 36E of the Taxes Act shall be paid at the rate of one point three United States cents per litre of diesel and four United States cents per litre of petrol of the cost, insurance, freight value (as defined in the Customs and Excise Act [Chapter 23:02] of petroleum product, whichever is the greater amount, imported by—

(a)the State oil procurement entity or other person or entity importing petroleum product for his or her own consumption; or

(b)any person licensed by the Minister responsible for energy to import the petroleum product in bulk.

[subsection substituted by section 7 of Act 3 of 2009 and amended by s.i 149 of 2009]

(2)In addition, a visitor to Zimbabwe who uses within Zimbabwe a motor vehicle registered outside Zimbabwe shall, upon entering Zimbabwe, and for each month or part of a month during which he or she visits Zimbabwe, pay carbon tax in respect of such vehicle to the Zimbabwe Revenue Authority in United States dollars (or the equivalent in Euros or in any other currency denominated under the Exchange Control (General) Order, 1996 (Statutory Instrument 110 of 1996) at the prevailing international cross rate of exchange), at the rate of ten United States dollars per vehicle.[subsection substituted by Act 2 of 2017][section substituted by Act 8 of 2005]

22F. ***

[section repealed by Act 10 of 2009]

22G. Intermediated money transfer tax

The intermediated money transfer tax chargeable in terms of section 36G of the Taxes Act shall be calculated at the rate of zero comma zero five United States dollars for each transaction on which the tax is payable.[section inserted by Act 15 of 2002 and amended by Act 29 of 2004 and Act 5 of 2009]

22H. NOCZIM debt redemption and strategic reserve levy

The NOCZIM debt redemption and strategic reserve levy chargeable in terms of section 36H of the Taxes Act shall—

(a)in relation to the NOCZIM debt redemption levy, be calculated at the rate of one point three United States cents per litre of diesel and five point seven United States cents per litre of petrol;[paragraph amended by Act 2 of 2017]

(b)in relation to the strategic reserve levy, be calculated at the rate of one point five United States cents per litre of diesel and one point five United States cents per litre of petrol;

purchased or imported by—

(c)an oil company from NOCZIM or its subsidiaries or successors; or

(d)any person licensed by the Minister responsible for energy to import the petroleum product in bulk.[section substituted by Act 8 of 2011]

22I. Property or insurance commission tax

The property or insurance commission tax chargeable in terms of section 36I of the Taxes Act shall be calculated at the rate of twenty per centum of each dollar of the commission from which such tax is to be paid in terms of the Thirty-Second Schedule to that Act.[section inserted by Act 29 of 2004]

22J. Tax on non-executive directors’ fees

The tax on non-executive directors’ fees chargeable in terms of section 36J of the Taxes Act shall be calculated at the rate of twenty per centum of each dollar of the fees from which such tax is to be paid in terms of the Thirty-Third Schedule to that Act.[section inserted by Act 12 of 2006]

22K. Tax on exercise of share options granted before 1st February, 2009

Notwithstanding paragraph (t) of the definition of “gross income” in section 8(1) of the Taxes Act, where an employee was, before the 1st February, 2009, offered shares pursuant to a share option scheme operated by his or her employer, there shall be charged on the sale of any of those shares after that date a tax of five per centum of each United States dollar on the market value of those shares prevailing on the date of the exercise of the option.[section inserted by Act 5 of 2009]

22L. Petroleum importers levy

The petroleum importers levy chargeable in terms of section 36K of the Taxes Act shall be calculated at the rate of 0,04 United States dollars per litre of petroleum product transported by a petroleum importer by road.[section substituted by Act 8 of 2011]

Part IV – Employeees tax

23. Matters to be regarded by Commissioner in relation to employees tax

The Commissioner, in exercising the powers conferred on him by paragraph 3 of the Thirteenth Schedule to the Taxes Act—

(a)shall have regard to the rates of income tax referred to in section fourteen; and

(b)may have regard to the credits referred to in section twelve, in so far as they relate to payments referred to in paragraph (c) of the definition of “medical expenses” in subsection (1) of that section;

(c)in the case of directives, may have regard to the credits referred to in sections ten to thirteen.

[section 23 substituted by section 8 of Act 13 of 1996 from 1 April 1997]

Schedule to Chapter I (Section 4)

Credits and rates of income tax

Part I - Credits

[Part I substituted by section 9 of Act 3 of 2009]

Section	Nature of credit	//Specified amount$//
10	Credit for taxpayers over 55 years of age	US$900
11	Blind persons credit	US$900
13	Mentally or physically disabled persons credit	US$900

Part II - Rates of Income tax on taxable income

[Part II substituted by of Act 11 of 2014]

Section	Level of taxable income	Specifiedpercentage %
14(2)(a)(i)	Up to US$3 600	0
14(2)(a)(ii)	US$3 601 to US$18 000	20
14(2)(a)(iii)	US$18 001 to US $36 000	25
14(2)(a)(iv)	US$36 001 to US$60 000	30
14(2)(a)(v)	US$60 001 to US$120 000	35
14(2)(a)(vi)	US$120 001 to US$180 000	40
14(2)(a)(vii)	US$180 001 to $240 000	45
14(2)(a)(viii)	US$240 501 and more.	50
14(2)(b)	Taxable income of individual from trade or investment	25
14(2)(b1)	Taxable income of individual (holding temporary employment permit from employment with a licensed investor having qualifying degree of export-orientation as defined in section 2 of the Taxes Act) [item inserted by Act 3 of 2017]	15
14(2)(c)	Taxable income of company or trust	25
14(2)(d)	Taxable income of pension fund from trade or investment	15
14(2)(e)	Taxable income of licensed investor having qualifying degree of export-orientation as defined in section 2 of the Taxes Act (before the end of the fifth year of its operations as such)	0
	Taxable income of licensed investor (after the fifth year of its operations as such)[item substituted by Act 3 of 2017]	15
14(2)(f)	Taxable income of holder of special mining lease	15
14(2)(g)	Taxable income of company or trust derived from mining operations	25
14(2)(h)	Taxable income of person engaged in approved BOOT or BOT arrangement: First five years of arrangement	0
	Second five years of arrangement	15
14(2)(i)	Taxable income of industrial park developer (before the fifth year of his or her operations as such)	0
	Taxable income of industrial park developer (after the fifth year of his or her operations as such)	25
14. (2)(j)	Taxable income of operator of a tourist facility in approved tourist development zone(before the fifth year of his or her operation as such)	0
Taxable income of operator of a tourist facility in approved tourist development zone(after the fifth year of his or her operation as such)	Taxable income from manufacturing of a company which exports more than 30% or more of its output but less than 41%	25
14. (3) (a)	Taxable income from manufacturing of a company which exports more than 30% or more of its output but less than 41%	20
14. (3) (b)	Taxable income from manufacturing of a company which exports more than 41% or more of its output but less than 50%	17
14. (3) (c)	Taxable income from manufacturing of a company which exports 51% or more of its output	,5
	[item 14(3) substituted by Act 11 of 2014]	15
14. (5)	Dividends from company incorporated outside Zimbabwe	20
	[item 14(5) inserted by Act 5 of 2010]	20

Part III

[Part III repealed by of Act 10 of 2009]

Chapter II
Stamp duties

24. Interpretation in Chapter II

(1)In this Chapter—“African Development Bank” means the bank referred to in the African Development Bank (Membership of Zimbabwe) Act [Chapter 22:01];[definition inserted by Act 8 of 2015]“African Export-Import Bank” means the bank referred to in the African Export-Import Bank (Membership of Zimbabwe and Branch Office Agreement) Act [Chapter 22:17];[definition inserted by Act 18 of 2015]“mortgage finance” means the provision of loans for the acquisition of immovable property for residential purposes, which loans are secured by the collateral of that immovable property;[definition inserted by Act 11 of 2014]“principal Act” means the Stamp Duties Act [Chapter 23:09];“this Act” includes the principal Act.

(2)Any expression to which a meaning has been or may be construed as having been assigned in the principal Act shall, when used in this Chapter, have the same meaning.

24A. Payment of certain stamp duties in foreign currency

(1)Notwithstanding section 41 of the Reserve Bank of Zimbabwe Act [Chapter 22:15] and the Exchange Control Act [Chapter 22:05], the stamp duty payable on—

(a)the registration in a Deeds Registry of the acquisition of immovable property that was acquired in foreign currency;

(b)any mortgage bond or notarial bond, or any cession or substitution of debtor in respect thereof referred to in item 1 of the Schedule, that is denominated in a foreign currency;

(c)any broker’s note referred to in item 2 of the Schedule that is denominated in a foreign currency;

(d)any off-market share transfer instrument referred to in item 3 of the Schedule that is denominated in a foreign currency;

(e)any cheque referred to in item 4 of the Schedule;

(f)any policy of insurance referred to in item 5 that is denominated in a foreign currency;

shall be payable in the same or another specified foreign currency.

(2)If the Registrar of Deeds has reasonable grounds to believe that—

(a)the whole or any part of the consideration payable by the person who has acquired immovable property is payable in the form of foreign currency; or

(b)the transaction underlying any of the following instruments, namely—

(i)a mortgage bond or notarial bond, or any cession or substitution of debtor in respect thereof; or

(ii)a broker’s note; or

(iii)an off-market share transfer instrument; or

(iv)a policy of insurance;

involved the payment of a foreign currency, whether in whole or in part;

and the person, in supplying information, producing documents or making a declaration, required under or by virtue of the principal Act—

(c)fails to disclose any material fact relevant to the nature of the transaction by which property has been acquired or to the consideration payable in respect of any property or to the value on which duty is payable; or

(d)makes a false statement; or

(e)falsifies or authorises the falsification of any document;

with the effect that liability for payment of any stamp duty in foreign currency is avoided or postponed, the Registrar of Deeds may determine the fair value of the immovable or other property in question in United States dollars, and thereupon the duty shall be calculated in accordance with the fair value as so determined.

(3)For the avoidance of doubt it is declared that all the provisions of the principal Act shall apply, with such changes as may be necessary, to the payment in foreign currency of stamp duty, in the same way as they apply to the payment of such duty in Zimbabwean currency.

(4)The Registrar of Deeds may require any person who tenders payment of stamp duty in a foreign currency other than the United States dollar, to tender instead the equivalent amount of that duty in United States dollars, being an amount obtained by applying the international cross rate of exchange of the first-mentioned currency for the United States dollar prevailing on the day the stamp duty concerned becomes due.[section inserted by section 22 of Act 3 of 209]

25. Duties prescribed

(1)For the purposes of section 5 of the principal Act, the duties payable on instruments and other matters shall be as prescribed in the Schedule.

(2)Where the transaction underlying any of the following instruments, namely—

(a)a mortgage bond or notarial bond, or any cession or substitution of debtor in respect thereof; or

(b)a broker’s note; or

(c)an off-market share transfer instrument; or

(d)a policy of insurance;

involves the payment of Zimbabwean currency, whether in whole or in part, the stamp duty prescribed in the Schedule that is payable on the Zimbabwe dollar component of that transaction shall be converted from United States dollars at the rate of twenty Zimbabwe dollars to one United States dollar, or at such other rate as the Minister may, by notice in a statutory instrument, prescribe.[subsection inserted by section 23 of Act 3 of 2009]

Schedule to Chapter II (Section 25)

Stamp duty on instruments and other matters

[Schedule substituted by section 22 of Act 3 of 2009]

Item 1. Bonds
	US$	c
Any mortgage bond or notarial bond, or any cession or substitution of debtor in respect thereof—
for every $100 or part thereof of the debt secured or to be secured	0	40

Exemptions to Item:(a)Any sum separately secured by a bond to cover any costs incurred in connection with the debt.(b)Any bond which is auxiliary or collateral to, or substituted for, a previously made and duly stamped bond executed by the same person and for the same debt or obligation.(c)Any bond which is executed by way of suretyship only, where there exists a duly stamped bond for the same debt or obligation executed by the principal debtor or obligor.(d)Any cession or substitution of debtor in respect of a bond mentioned in exemption (b), not being a substituted bond.(e)Any cession or substitution of debtor in respect of a bond mentioned in exemption (c).(e)any cession by a creditor of a mortgage bond for valuable consideration if the ceding creditor certifies in writing to the Registrar that the valuable consideration therefor will be used for mortgage finance.[Please note: numbering as in original.][paragraph inserted by Act 11 of 2014 and numbered (e) instead of (f) in error. Law Reviser](f)any registration of a bond i the instance of the African Development Bank or African Export-import Bank to secure a loan or other credit facility advanced by it to any person in Zimbabwe in pursuance of the objects of either of those institutions.[paragraph inserted by Act 8 of 2015]

Item 2. Brokers' note
	US$	c
(1) In respect of the purchase of any marketable security—for every $100 or part thereof of the consideration 0 25[item amended by section 10 of Act 5 of 2009]	0	25
for every $100 or part thereof of the consideration 0 50[item amended by section 18 of Act 5 of 2009]	0	50
[The amendments inserted by Act 5 of 2009 are contradictory. Law Reviser]
(2) In respect of the purchase or sale of any movable property other than a marketable security—for every $100 or part thereof of the consideration	0	10
(3) In respect of the purchase or sale of any immovable property	1	00

Exemptions to Item:(a)A broker’s note where the value of the consideration does not exceed $20.(b)A broker’s note in respect of any public loan raised by the State or a local authority.(c)A broker’s note in respect of any marketable security issued by a statutory body as defined in section 2 of the Audit and Exchequer Act [Chapter 22:03] or by a local authority or building society.

Item 3. Off-market share transfer instruments
	US$	c
Any off-market share transfer instrument referred to in section 17A of the principal Act	2	00

Item 4. Cheques
	US$	c
Any cheque as defined in section 72 of the Bills of Exchange Act [Chapter 14:02]	0	5

Exemptions to Item:(a)A cheque drawn by any employee of the State for the purpose of the State.(b)A draft or order by any banker on another banker which is not available for payment or credit to any third person and is used solely for settling or clearing accounts between such bankers.

Item 5. Policies of insurance
	US$	c
(1) Any policy or certificate of insurance or renewal thereof or any other document which is in the form of a guarantee, fidelity, security or surety bond and is signed by an insurance company or by any person transacting business on behalf of brokers or underwriters at Lloyd’s (in this paragraph called a policy), where such policy is not otherwise provided for in this Item—
for every dollar or part thereof of the premium payable for the period for which the policy is issued or renewed or, if the policy is not renewable, of each and every premium payable[Item amended by Act 5 of 2009. Underpayment condoned by section 7 of Act 9 of 2015]	0	05
Maximum	100 000
Minimum-
(a) if the policy is not renewable and the period of the policy—
(i) does not exceed 31 days(ii) exceeds 31 days	02	5000
(b) if the policy is renewable and the period of the policy or the renewal thereof—
(i) does not exceed 31 days(ii) exceeds 31 days, for every year or part of a year for which the policy is issued or renewed	02	5000
(2) Any ticket, coupon, notice, bill or other document purporting to be an insurance or to entitle a person to insurance in the event of death, accident, sickness or the like	5% of the annual receipts from the sale or issue for valuable consideration of any such documents
(3) Any policy or certificate of insurance of any crop in respect of damage or destruction by hail	5	00
(4) Any policy or certificate of marine insurance executed outside Zimbabwe, or any renewal thereof	5	00
(5) Any interim policy of insurance the currency of which does not exceed four calendar monthsProvided that the duty on any such interim policy shall not exceed that payable upon a final policy covering a like risk.	3	00
(6) Any endorsement made after the issue of a policy shall be stamped as a new policy if the effect of such endorsement is—
(a) to substitute some other person for the person insured; or
(b) to substitute some other matter or thing for the matter or thing which is the subject of the policy; or
(c) to increase the amount of the insurance; or
(d) to make a material alteration to the subject matter of the policy:Provided that in the case of a policy such as is described in paragraph (1), duty shall be payable in terms of this paragraph only in respect of any increase in the premium payable in terms of such endorsement.

Exemptions to Item:(a)A policy of life insurance, including a funeral policy.(b)A policy, bond or document which assures an annuity or a pension on retirement(c)An interim cover note issued in respect of a policy of insurance to be issued within Zimbabwe.(d)A policy or instrument issued solely for the purpose of effecting reinsurance by one insurance company or association in respect of another insurance company or association.(e)A certificate of insurance relating to a duly stamped policy of insurance.(f)A policy or instrument issued solely for the purpose of a bond or guarantee executed in terms of the Customs and Excise Act [Chapter 23:02].

Item 6. Registration in the Deeds Registry of the acquisition of immovable property
	$	c
(1) For the registration in the Deeds Registry of any acquisition of property-
(a) in respect of so much of the value of the property as does not exceed $5 000—for every $100 or part thereof of the value	0	7
(b) in respect of so much of the value of the property as exceeds$5 000 but does not exceed $15 000—	3	00
(c) in respect of so much of the value of the property as exceeds $15 000 but does not exceed $100 000for every $100 or part thereof of the value	5	00
	US$	c
(1) For the registration in the Deeds Registry of any acquisition of property that has been acquired with foreign currency—[Please note: numbering as in original.]
(a) in respect of so much of the value of the property as does not exceed 5 000 United States dollars—for every $100 or part thereof of the value	1	00
(b) in respect of so much of the value of the property as exceeds $5 000 but does not exceed 20 000 United States dollars—for every $100 or part thereof of the value	2	00
(c) in respect of so much of the value of the property as exceeds $20 000 but does not exceed 100 000 United States dollarsfor every $100 or part thereof of the value	3	00
(d) in respect of so much of the value of the property as exceeds 100 000 United States dollars—for every $100 or part thereof of the value	4	00

Exemptions to Item:(a)An acquisition of property whereby no change of beneficial interest in the property acquired is effected:Provided that this exemption shall not apply where property which has been transferred to an administrator circumstances mentioned in exemption (i) is subsequently transferred to the person on whose behalf it has been held by the administrator, except where that person is an heir or legatee referred to in exemption (c).(b)An ecclesiastical, charitable or educational institution which is recognized in Zimbabwe as being of a public character and is approved by the Minister, in respect of property or any portion thereof acquired for a purpose which does not consist in the main of the acquisition of gain by the institution or any other person:Provided that—(i)if, within ten years after the date of acquisition of the property, the property or any portion thereof is used for a purpose which consists in the main of the acquisition of gain by the institution or any other person, duty shall become due and payable on the fair value of such property or such portion thereof as determined by the Registrar of Deeds in terms of section 23(4) and (5) of the principal Act, taking the date when the property or portion thereof was first so used as being the date of acquisition of the property. If, after that date, the duty is still unpaid, the Registrar of Deeds shall make a note on the title deeds to the property and in his or her register stating that transfer of the property is prohibited until the duty has been paid; and until the duty has been paid no transfer of the property shall be passed;(ii)where the acquisition of immovable property by an ecclesiastical, charitable or educational insttution was registered in the Deeds Registry prior to the 1st October, 1972, and that institution was exempted from the duty payable in terms of the Item then in force, proviso (i) shall apply in determining whether any duty shall become due and payable after the date of the registration of the acquisition of the immovable property.(c)An heir or legatee, or a tutor, curator or trustee acquiring for and in the name of an heir or legatee, in respect of property acquired by intestate or testamentary succession or as a result of a redistribution of the assets of a deceased estate in the process of liquidation.For the purposes of this paragraph—(i)“heir or legatee” does not include a person who is not—A. a blood relation of either the deceased or his spouse; orB. a legally adopted child of either the deceased or his or her spouse; orC. the spouse of any relation or child referred to in subparagraph A or B;(ii)the heir ab intestato of a person to whom customary law applies shall be determined in accordance with customary law;(d)A surviving spouse in respect of property acquired in any manner from the estate of the deceased spouse.(e)A joint owner of property in respect of the acquisition of a defined portion of the property allotted to him or her upon partition of the property, but not in respect of any consideration payable by him or her in order to equalize the partition or for any other reason.(f)A joint owner of property who acquires the sole ownership in the whole or a portion of the property, in respect of so much of the value of the property in which sole ownership is acquired as represents his or her share in the joint ownership of that property.(g)A registration to correct an error in the registration of the acquisition of any property, if the duty payable in respect of that acquisition has been duly paid.(h)A divorced spouse in respect of property awarded to such spouse by the divorce order.(i)A transfer of property in a deceased estate to an administrator where such property has, by will or by an order of court, been placed under the administration of such administrator.(j)A registration of property required as a result of the termination of the appointment of an administrator of a trust under a will or other written instrument or of a trustee of an insolvent estate.(k)A vesting of the property in an insolvent estate in the trustee of such estate or a restoration of such property by the trustee to the insolvent.(l)A vesting of the property on the liquidation of a company in the liquidator of such company or a restoration of such property by the liquidator to the company.(m)An acquisition of property in respect of which transfer duty is payable in terms of section 275 of the Mines and Minerals Act [Chapter 21:05].(n)An acquisition of property—(i)by a company from the wholly owned subsidiary of the company; or(ii)by the wholly owned subsidiary of a company from the company; or(iii)by the wholly owned subsidiary of a company from another wholly owned subsidiary of the company;if the Registrar of Deeds is satisfied that the company and its wholly owned subsidiary or the company and its wholly owned subsidiaries, as the case may be, are registered in terms of the Companies Act [Chapter 24:03] or the Insurance Act [Chapter 24:07], as the case may be:Provided that if, within ten years after the date of acquisition of the property by the wholly owned subsidiary of a company and whilst the property is registered in the name of the wholly owned subsidiary of the company, the wholly owned subsidiary of the company ceases to be wholly owned by the company, duty shall become due and payable on the fair value of such property as determined by the Registrar of Deeds in terms of section 23(4) or (5) of the principal Act, taking the date when the wholly owned subsidiary of the company ceased to be wholly owned by the company as being the date of acquisition of the property. If after that date the duty is still unpaid, the Registrar of Deeds shall make a note on the title deeds to the property and in his or her register stating that transfer of the property is prohibited until the duty has been paid; and until the duty has been paid no transfer of the property shall be passed.In this exemption—“company” includes—(a)a company as defined in the Companies Act [Chapter 24:03]; and(b)an insurer registered in terms of the Insurance Act [Chapter 24:07];“wholly owned subsidiary” has the meaning assigned to it in the Companies Act [Chapter 24:03].(o)An acquisition of property by a local authority from the State by way of a transaction not involving purchase and sale where—(i)the Secretary of the Ministry responsible for transferring the property certifies to the Commissioner that the property is to be used for public purposes; or(ii)the property has been reserved by the State for the inhabitants of the area of the local authority.(p)An acquisition of property by a local authority in terms of the Regional, Town and Country Planning Act [Chapter 29:12], where the property—(i)is acquired for public purposes; or(ii)consists of a road, the ownership of which vests in the local authority in terms of the said Act.(q)An acquisition of property—(i)by a pension or provident fund from a company all the shares of which are owned by that fund; or(ii)by a company all the shares of which are owned by a pension or provident fund from that fund; or(iii)by a company all the shares of which are owned by a pension or provident fund from another company all the shares of which are owned by that same fund:Provided that if in the case of property acquired by such a company, within ten years after the date of acquisition of such property by that company and whilst such property is registered in the name of that company, the shares of that company cease to be wholly owned by the pension or provident fund concerned, duty shall become due and payable on the fair value of such property as determined by the Registrar of Deeds in terms of section 23(4) and (5) of the principal Act, taking the date when all the shares of the company ceased to be wholly owned by the pension or provident fund as being the date of acquisition of the property. If, after that date, the duty is still unpaid, the Registrar of Deeds shall make a note on the title deeds to the property and in his or her register stating that transfer of the property is prohibited until the duty has been paid, and until the duty has been paid no transfer of the property shall be passed.In this exemption—“pension or provident fund” means a pension fund or provident fund which is registered or provisionally registered in terms of the Pension and Provident Funds Act [Chapter 24:09]; “company” has the meaning assigned to it in the Companies Act [Chapter 24:03].(r)An acquisition of property by a petroleum operator, approved by the Minister by notice in the Gazette, where the property is acquired for the purposes of petroleum operations.In this exemption, “petroleum operations” and “petroleum operator” have the respective meanings given them by section 2(1) of the Income Tax Act [Chapter 23:06].(s)An acquisition of property in respect of which an election has been made in terms of subparagraph (2) of paragraph 7 of the Eighth Schedule to the Income Tax Act [Chapter 23:06].(t)An acquisition of property in the circumstances described in paragraph of subsection of section 15(1)(a) of the Capital Gains Tax Act [Chapter 23:01].

Chapter III
Licences tariff

26. Interpretation in Chapter III

Any expression to which a meaning has been or may be construed as having been assigned in any enactment referred to in section twenty-seven shall, when used in this Chapter, have the same meaning.

27. Imposition of fees for certain licences

There shall be charged, levied and collected for the benefit of the Consolidated Revenue Fund the fees set out in the Schedule in respect of the licences therein mentioned, subject to any enactment for the time being in force relating thereto:Provided that, where any such fees are collected by a revenue officer who is not an employee of the State, there may be paid to the employer of that revenue officer in respect of the collection of the fee such administration fee as the Minister responsible for finance may determine, and for that purpose the revenue officer concerned—

(a)may, before paying the fees collected by him to the Consolidated Revenue Fund, deduct therefrom the amount of the administration fee as determined by the Minister responsible for finance; and

(b)shall pay to the Consolidated Revenue Fund the balance of the fees so collected.

Schedule to Chapter III (Section 27)

Licence Fees

Licenses issued under miscellaneous Acts
Licence or permit	Yearly licence fee		Fee for licence not requiring renewal and other fees
	$	c	$	c
1. Pool promoter of a pool betting business promoted within Zimbabwe	100	00
2. Representative of the promoter of a pool betting business promoted outside Zimbabwe	100	00
3. Copper dealer	10	00
4. Casino licence, other than a temporary casino licence	2000	00
5. Temporary casino licence			500	00

Chapter IV
Value added tax

28. Interpretation in Chapter IV

(1)In this Chapter—“principal Act” means the Value Added Tax Act [Chapter 23:12];[definition substituted by Act 12 of 2002]“value added tax” means the tax imposed in terms of Part III of the principal Act;[definition substituted by Act 12 of 2002]

(2)Any expression to which a meaning has been or may be construed as having been assigned in the principal Act shall, when used in this Chapter, have the same meaning.

29. Rates of value added tax

(1)The rate of value added tax shall be as set out in the Schedule.

(2)The rate of value added withholding tax shall be as set out in Part IV.[section substituted by Act 2 of 2017]

30. Amendment of rates imposed by Section 29

(1)The Minister responsible for finance may, by statutory instrument, amend or replace the rate mentioned in section twenty-nine, and the rate as so amended or replaced shall, subject to subsection (2), accordingly be charged, levied and collected with effect from the date specified in such instrument, which shall not be earlier than the date the statutory instrument is published in the Gazette.[subsection amended by Act 27 of 2001]

(2)If any provision contained in a statutory instrument made in terms of subsection (1) is not confirmed by a Bill which—

(a)passes its second reading stage in Parliament on one of the twenty-eight days on which Parliament sits next after the coming into operation of the instrument; and

(b)becomes law not later than six months after the date of such second reading;

that provision shall become void as from the date specified in the instrument as that on which the rate of tax shall be amended or replaced, and so much of the rate of tax as was amended or replaced, as the case may be, by that provision shall be deemed not to have been so amended or replaced.

31. Adjustments of tax

(1)If Parliament does not enact any increase of tax imposed in terms of subsection (1) of section thirty or enacts a lower increase of any tax so imposed, any registered operator or importer, as the case may be, who has paid such tax shall on application be entitled to a refund—

(a)in the case of an increase of tax not being enacted, of an amount equal to the difference between the tax paid by him and the existing tax; and

(b)in the case of a lower increase of tax being enacted, of an amount equal to the difference between the tax paid by him and the new increased tax.

(2)If Parliament—

(a)does not enact a reduction in a rate of tax made in terms of subsection (l) of section thirty; or

(b)enacts a less reduction in the rate of tax referred to in paragraph (a) than that made in terms of subsection (1) of section thirty; or

(c)does not enact a withdrawal of tax made in terms of subsection (1) of section thirty; or

(d)enacts the tax referred to in paragraph (c) at a reduced rate;

no payment by way of tax under-collected or tax not collected shall be required from any person in respect of the tax paid at the reduced rate or, as the case may be, in respect of tax payable during the period when, in terms of subsection (1) of section thirty, the rate of tax was reduced or, as the case may be, the tax was withdrawn.

Schedule to Chapter IV (Section 29)

[Schedule substituted by Act 16 of 2004]

Part I - General rate of value added tax

Subject to this Schedule, the rate of value added tax in respect of—

(a)goods or services supplied by any registered operator in the course or furtherance of any trade carried on by the registered operator; and

(b)the importation of any goods into Zimbabwe by any person; and

(c)the supply of any imported services by any person; and

(d)goods and services sold through an auctioneer (as defined in section 56(6)) by persons who are not registered operators[paragraph repealed by Act 8 of 2005 and reinserted by section 18 of Act 16 of 2007]

shall be fifteen per centum.[Part amended by Act 2 of 2005 and Act 8 of 2005]

Part II - Value added tax on betting and gaming

The rate of value added tax in respect of the transactions or receipts mentioned in the first column of the following table shall be that specified in the second column opposite thereto.Any expression to which a meaning has been or may be construed as having been assigned in any enactment mentioned in the table shall, when used in this Part, have the same meaning.

Transactions or receipts	Rate of tax
1. Any bet made at any place other than a racecourse by any person with a bookmaker licensed in terms of the Betting and Totalizator Control Act [Chapter 10:02] on a horse race.	1. (a) fifteen per centum on the amount payable by the bookmaker to such person in respect of such bet excluding the amount representing the amount staked.
	(b) Fifteen per centum on the amount of the net winnings of such bookmaker in respect of each period of six months commencing on the 1st April and the 1st October each year.
2. Any bet made on a horse race at a race-course on a race day by any person with a bookmaker licensed in terms of the Betting and Totalizator Control Act [Chapter 10:02].	2. (a) Fifteen per centum on the amount payable by the bookmaker to such person in respect of such bet excluding the amount representing the amount staked.
	(b) Fifteen per centum on the amount of the net winnings of such bookmaker in respect of each period of six months commencing on the 1st April and the 1st October each year
3. Any bet made at any place, other than a racecourse on a race day, by any person with a bookmaker licensed in terms of the Betting and Totalizator Control Act [Chapter 10:02] on any sporting event other than a horse race.	3. (a) Fifteen per centum on the amount payable by the bookmaker to such person in respect of such bet excluding the amount representing the amount staked.
	(b) Fifteen per centum on the amount of the net winnings of such bookmaker in respect of each period of six months commencing on the 1st April and the 1st October each year.
4. Any bet or stake made by way of pool betting by any person with a licensed pool promoter or with a licensed representative, licensed in terms of the Pools Control Act [Chapter 10:19].	4. Fifteen per centum on the aggregate total bets or stakes in each pool competition.
5. Any bet made by way of fixed odds betting by any person with a bookmaker licensed in terms of the betting and totalizator control act [Chapter 10:02].	5. Fifteen per centum on the aggregate total bets made with such bookmaker in each fixed odds betting competition.
6. Any bet or stake made by any person through the medium of a totalizator licensed in terms of the Betting and Totalizator Control Act [Chapter 10:02].	6. Fifteen per centum on the gross takings of such totalizator.
7. Gaming revenue received by the holder of a casino licence in terms of the Casino Act [Chapter 10:03] other than a temporary casino licence.	7. Fifteen per centum of the gaming revenue received in each quarter during the currency of the licence.
8. Banker’s revenue received by a banker in terms of the Casino Act [Chapter 10:03], other than a banker referred to in item 10.	8. Fifteen per centum of the banker’s revenue received.
9. Gaming revenue received by the holder of a temporary casino licence in terms of the Casino Act [Chapter 10:03].	9. Fifteen per centum of the gaming revenue received during the validity of the licence.
10. Banker’s revenue received by a banker in terms of the Casino Act [Chapter 10:03] under an agreement with the holder of a temporary casino licence in terms of that act.	10. Fifteen per centum of the banker’s revenue received in terms of the agreement with the holder of the temporary casino licence.”.

Part III - Special rate of value added tax on supply of cellular telecommunications service

[Part inserted by section 20 of Act 2 of 2009]The rate of value added tax in respect of the supply of cellular telecommunications services in the course of furtherance of the supply of such services by a registered operator shall be fifteen per cent per annum.[Part amended by section 27 of Act 3 of 2009]

Part IV - Value added withholding tax

The amount of value added withholding tax to be withheld by a value added withholding tax agent in terms of section 50A of the principal Act shall be two-thirds of the output tax to be paid to a specified operator.[Part inserted by Act 2 of 2017]

Chapter V
Betting and gaming tax

[Chapter V repealed by Act 16 of 2004]

32. ***

33. ***

Chapter VI
Estate duty

34. Interpretation in Chapter VI

(1)In this Chapter—

(a)“principal Act” means the Estate Duty Act [Chapter 23:03];

(b)every expression has the same meaning it would have when used in the principal Act.

(2)The expression “this Act” when used in the principal Act shall be construed as including a reference to this Chapter.

35. Rate of estate duty

For the purposes of section 3 of the principal Act the rate of estate duty shall be as set out in the Schedule.

Schedule to Chapter VI (Section 35)

Rate of estate duty

1.In the case of the estate of a person who died before the 1st August, 1981, the rate of estate duty chargeable upon each dollar of the dutiable amount shall be arrived at by multiplying fifteen thousandths (0,015) of a cent by a number equal to the number of complete one hundred dollars contained in the dutiable amount, any part of one hundred dollars being regarded as a complete one hundred dollars:Provided that—

(i)the maximum rate upon each dollar of the dutiable amount shall be twelve and one-half cents;

(ii)there shall be deducted from the amount of duty determined at the rate so calculated a rebate—

(a)in the case of the estate of a person who died before the 1st October, 1972, of one thousand three hundred and fifty dollars;

(b)in the case of the estate of a person who died on or after the 1st October, 1972, but before the 1st August, 1981, of five thousand four hundred dollars;

and from the remaining amount there shall be deducted a sum equal to twenty per centum of such remaining amount.

2.In the case of the estate of a person who died on or after the 1st August, 1981, but before the 1st august, 1982, the rate of estate duty chargeable on each dollar of the dutiable amount shall be arrived at by multiplying two hundredths (0,02) of a cent by a number equal to the number of complete one hundred dollars contained in the dutiable amount, any part of one hundred dollars being regarded as a complete one hundred dollars:Provided that—