First Schedule (Section 8)
Amounts received or accrued by way of lump sum payments which shall not be included in gross income
Preliminary
1. Interpretation
(1)In this Schedule—“amended pensions law”, in relation to a Part II beneficiary to whom a pensions law of Zimbabwe applied, means a pensions law of Zimbabwe in force before the 1st July, 1960, the provisions of which were amended or re-enacted on or after that date to provide for an increase in the ordinary contributions made to the Consolidated Revenue Fund by the beneficiary or the State or the beneficiary and the State with the object of increasing the amount of the pension payable to the beneficiary and “unamended”, when used in relation to a pensions law, and “unamended or re-enacted”, when used in relation to the provisions of a pensions law, shall be construed accordingly;“annuity on retirement”, in relation to—(a)a Part I beneficiary, means—(i)in the case of a male beneficiary, an annuity payable on his attaining an age of not less than fifty-five years;(ii)in the case of a female beneficiary, an annuity payable on her attaining an age of not less than fifty years;the right to which cannot be assigned or pledged and of which no amount in excess of one-third of the total value of the annuity may be commuted for a single payment except where the annual amount of such annuity does not exceed one thousand eight hundred United States dollars;(b)a Part II beneficiary, means an annuity payable on or after the date from which a pension or other benefit—(i)first became payable to the beneficiary on the grounds of superannuation; or(ii)would, but for the cessation of the employment of the beneficiary or his withdrawal from or the winding up of the pension fund of which he was a member, first have become payable to the beneficiary on the grounds of superannuation;the right to which cannot be assigned or pledged and of which no amount in excess of one-third of the total value of the annuity may be commuted for a single payment except where the annual amount of such annuity does not exceed one thousand eight hundred United States dollars;“benefit fund” means a fund as defined in paragraph (1) of the definition of “benefit fund” in subsection (1) of section two;“fund with changed rules”, in relation to a Part I beneficiary or a Part II beneficiary who was a member of a pension fund, means a benefit or pension fund established before the 1st July 1960, the rules of which were changed on or after that date to provide for an increase in the ordinary contributions made by the beneficiary or the employer of the beneficiary or the beneficiary and the employer of the beneficiary with the object of increasing the amount of the benefit or pension payable to the beneficiary and “unchanged”, when used in relation to the rules of a benefit or pension fund, shall be construed accordingly; “lump sum payment”, in relation to—(a)a Part I or Part II beneficiary who was employed within Zimbabwe throughout the period during which ordinary contributions were made, means an amount equal to the terminal benefit paid to him;(b)a Part III beneficiary who was employed within Zimbabwe throughout the period during which he was a member of an unapproved fund, means an amount equal to the terminal benefit paid to him;(c)a Part I or Part II beneficiary who was not employed within Zimbabwe throughout the period during which ordinary contributions were made, means an amount which bears the same proportion to the terminal benefit paid to him as the period of his employment within Zimbabwe during which ordinary contributions were made bears to the period throughout which ordinary contributions were made;(d)a Part III beneficiary who was not employed within Zimbabwe throughout the period during which he was a member of an unapproved fund, means an amount which bears the same proportion to the terminal benefit paid to him as the period of his employment within Zimbabwe during which he was a member of such fund bears to the period throughout which he was a member of such fund;“new fund” means a benefit or pension fund established on or after the 1st July, 1960;“ordinary contribution”, in relation to—(a)a Part I beneficiary, means a contribution to a benefit fund which—(i)was not an arrear contribution; and(ii)was made by or in connection with the beneficiary; and(iii)was required to be made at intervals fixed by the rules of the fund; and(iv)was not refundable to the contributor;(b)a Part II beneficiary, means a contribution to a pension fund or the Consolidated Revenue Fund, as the case may be, which—(i)was not an arrear contribution; and(ii)was made by or in connection with the beneficiary; and(iii)was required to be made at intervals fixed by the rules of the fund or at a rate and at intervals fixed by the pensions law of Zimbabwe, as the case may be; and(iv)was not refundable to the contributor;“Part I beneficiary” means a person who was a member of a benefit fund;“Part II beneficiary” means—(a)a person who was a member of a pension fund; or(b)a person to whom a pensions law of Zimbabwe applied;“Part III beneficiary” means a person who was a member of an unapproved fund;“pensions law of Zimbabwe” means a law of Zimbabwe, the provisions of which require a person to contribute to the Consolidated Revenue Fund for the purpose of securing a pension for himself, his widow or children;“terminal benefit”, in relation to—(a)a Part I beneficiary, means any amount (other than a payment by way of annuity), which is paid or will be payable to the beneficiary by reason of his withdrawal from or the winding up of a benefit fund;(b)a Part II beneficiary, means any amount (other than—(i)an amount referred to in paragraph (a) or (b) of the definition of “gross income” in subsection (1) of section eight; or(ii)a payment in commutation of a pension made from a pension fund or the Consolidated Revenue Fund);which is paid or will be payable to the beneficiary by reason of his withdrawal from or the winding up of a pension fund or which is a benefit (not being a pension or gratuity) which is paid or will be payable by reason of contributions to the Consolidated Revenue Fund;(c)a Part III beneficiary, means any amount other than a payment by way of an annuity which is paid or will be payable to the beneficiary by reason of his withdrawal from or the winding up of an unapproved fund;“unapproved fund” means a fund or scheme established by an employer for the purpose of providing pensions, annuities, terminal benefits or similar benefits for his employees or the widows, children, dependants or nominees of deceased employees or for all or any of these purposes, which is not a pension fund or a benefit fund.(2)For the purposes of this Schedule—(a)a Part I or Part II beneficiary who was employed outside Zimbabwe by the State or the Government of the former Federation during any period in which ordinary contributions were made shall, if he was resident outside Zimbabwe solely for the purposes of that employment, be deemed to have been employed within Zimbabwe during that period; and(b)a lump sum payment from the Federal Provident Fund established in terms of section 4 of the Federal Provident Fund Act, 1960 (No. 29 of 1960), to a Part I beneficiary who, by reason of the provisions or in pursuance of anything done in terms of subsection (4) of section 15 of that Act, became a member of that Fund on ceasing to be a member of the Government Employees’ Provident Fund established in terms of section 3 of the Government Provident Fund Act shall, if he became a member of the Government Employees’ Provident Fund before the 1st July, 1960, be deemed to be a lump sum payment made from a benefit fund established before the 1st July, 1960, to a Part I beneficiary who became a member of the fund before that date; and(c)a lump sum payment from the Government Employees’ Provident Fund established in terms of section 3 of the Government Provident Fund Act to a Part I beneficiary who was a member of that Fund prior to the 1st July, 1960, and who, immediately on ceasing to be a member of that Fund, became a member of the Federal Provident Fund established in terms of section 4 of the Federal Provident Fund Act, 1960 (No. 29 of 1960) and who, immediately on ceasing to be a member of the Federal Provident fund, became a member of he first-mentioned Fund, shall be deemed to be a lump sum payment made from a benefit fund established before the 1st July, 1960, to a Part I beneficiary who became a member of the fund before that date; and(d)a lump sum payment to a Part II beneficiary who was a member of the pension fund of the Government of the former Federation or a statutory corporation before the 1st July, 1960, and who, as a result of the dissolution of the former Federation, is required to contribute to the Consolidated Revenue Fund or to the pension fund of a successor statutory corporation, shall be deemed to be a lump sum payment made from a pension fund established before the 1st July, 1960, to a Part II beneficiary who became a member of the fund before that date.Part I – Amounts received or accrued by way of lump sum payments from benefit funds which shall not be included in gross income
2. Lump sum payments from funds with unchanged rules to Part I beneficiaries who became members before the 1st July, 1960
If a lump sum payment is made from a fund with unchanged rules to a Part I beneficiary who became a member of the fund before the 1st July, 1960, the amount of the lump sum payment shall not be included in the gross income of the beneficiary.3. Lump sum payments from funds with changed rules to Part I beneficiaries who became members before the 1st July, 1960
If a lump sum payment is made from a fund with changed rules to a Part I beneficiary who became a member of the fund before the 1st July, 1960—(a)so much of the amount of the lump sum payment as—(i)does not exceed one thousand United States eight hundred dollars; or(ii)is equal to the lump sum payment the beneficiary would have received had the rules of the fund remained unchanged;whichever is the greater amount; and(b)so much of the balance of the amount of the lump sum payment, if any, remaining after the amount referred to in subparagraph (a) has been excluded therefrom as is used by the beneficiary to acquire a right to an annuity on retirement; and(c)so much of the balance of the amount of the lump sum payment, if any, remaining after the amounts referred to in subparagraphs (a) and (b) have been excluded therefrom as is paid by the beneficiary into another benefit fund or into a pension fund as contributions which do not qualify for deduction in terms of paragraph (h) or (i) of subsection (2) of section fifteen;shall not be included in the gross income of the beneficiary.4. Lump sum payments from new funds to Part I beneficiaries and from funds with changed or unchanged rules to Part I beneficiaries who became members on or after the 1st July, 1960
If a lump sum payment is made from a new fund to a Part I beneficiary or from a fund with changed or unchanged rules to a Part I beneficiary who became a member of the fund on or after the 1st July, 1960—(a)so much of the amount of the lump sum payment as does not exceed one thousand eight hundred United States dollars; and(b)so much of the balance of the amount of the lump sum payment, if any, remaining after the amount referred to in subparagraph (a) has been excluded therefrom as is used by the beneficiary to acquire a right to an annuity on retirement; and(c)so much of the balance of the amount of the lump sum payment, if any, remaining after the amounts referred to in subparagraphs (a) and (b) have been excluded therefrom as is paid by the beneficiary into another benefit fund or into a pension fund as contributions which do not qualify for deduction in terms of paragraph (h) or (i) of subsection (2) of section fifteen;shall not be included in the gross income of the beneficiary.5. Lump sum payments to Part I beneficiaries from new funds, funds with changed rules or funds of which they became members on or after 1st July, 1960, which contain amounts received from other funds
For the purposes of this Part, a lump sum payment received by a Part I beneficiary from a new fund, a fund with changed rules or a fund of which he became a member on or after the 1st July, 1960, shall not include that part of any amount received from such fund as relates to his membership of any other fund and which would not have been subject to tax in terms of this Act or any previous law had it been received from such other fund.Part II – Amounts received or accrued by way of lump sum payments from pension funds or the consolidated revenue fund which shall not be included in gross income
6. Lump sum payments from funds with unchanged rules to Part II beneficiaries who became members before the 1st July, 1960, and from the Consolidated Revenue Fund to Part II beneficiaries to whom an unamended pensions law applied before the 1st July, 1960
If a lump sum payment is made from a fund with unchanged rules to a Part II beneficiary who became a member of the fund before the 1st July, 1960, or from the Consolidated Fund to a Part II beneficiary to whom an unamended pensions law applied before the 1st July, 1960, the amount of the lump sum payment shall not be included in the gross income of the beneficiary.7. Lump sum payments from funds with changed rules to Part II beneficiaries who became members before the 1st July, 1960, and from the Consolidated Revenue Fund to Part II beneficiaries to whom an amended pensions law applied before the 1st July, 1960
If a lump sum payment is made from a fund with changed rules to a Part II beneficiary who became a member of the fund before the 1st July, 1960, or from the Consolidated Revenue Fund to a Part II beneficiary to whom an amended pensions law applied before the 1st July, 1960—(a)in the case of a lump sum payment which does not exceed one thousand eight hundred United States dollars, the amount of the lump sum payment; and(b)in the case of a lump sum payment which exceeds one thousand eight hundred United States dollars—(i)so much of the amount of the lump sum payment as is equal to the lump sum payment the beneficiary would have received had the rules of the fund remained unchanged or the amended pensions law not been amended or re-enacted, as the case may be; and(ii)so much of the balance of the amount of the lump sum payment, if any, remaining after the amount referred to in subparagraph (i) has been excluded therefrom as is used by the beneficiary to acquire a right to an annuity on retirement; and(iii)so much of the balance of the amount of the lump sum payment, if any, remaining after the amounts referred to in subparagraphs (i) and (ii) have been excluded therefrom as is paid by the beneficiary into another pension fund as contributions which do not qualify for deduction in terms of paragraph (h) or (i) of subsection (2) of section fifteen;shall not be included in the gross income of the beneficiary.8. Lump sum payments from new funds to Part II beneficiaries, from funds with changed or unchanged rules to Part II beneficiaries who became members on or after the 1st July, 1960, and from the Consolidated Revenue Fund to Part II beneficiaries to whom a pensions law did not apply before the 1st July, 1960
If a lump sum payment is made from a new fund to a Part II beneficiary or from a fund with changed or unchanged rules to a Part II beneficiary who became a member of the fund on or after the 1st July, 1960, or from the Consolidated Revenue Fund to a Part II beneficiary to whom a pensions law of Zimbabwe did not apply before the 1st July, 1960—(a)in the case of a lump sum payment which does not exceed one thousand eight hundred United States dollars, the amount of the lump sum payment; and(b)in the case of a lump sum payment which exceeds one thousand eight hundred United States dollars—(i)so much of the amount of the lump sum payment as is used by the beneficiary to acquire a right to an annuity on retirement; and(ii)so much of the balance of the amount of the lump sum payment, if any, remaining after the amount referred to in subparagraph (i) has been excluded therefrom as is paid by the beneficiary into another pension fund as contributions which do not qualify for deduction in terms of paragraph (h) or (i) of subsection (2) of section fifteen;shall not be included in the gross income of the beneficiary.9. Lump sum payments to Part II beneficiaries from new funds, funds with changed rules or funds of which they became members on or after 1st July, 1960, which contain amounts received from other funds
For the purposes of this Part, a lump sum payment received by a Part II beneficiary from a new fund, a fund with hanged rules or a fund of which he became a member on or after the 1st July 1960, shall not include that part of any amount received from such fund as relates to his membership of any other fund and which would not have been subject to tax in terms of this Act or any previous law had it been received from such other fund.Part III – Amounts received or accrued by way of lump sum payments from unapproved funds which shall not be included in gross income
10.
If a lump sum payment is made to a Part III beneficiary, so much thereof as represents a refund of the beneficiary’s contributions to the unapproved fund shall not be included in the gross income of the beneficiary.Second Schedule (Section 8)
Valuation of trading stock
Part I – Preliminary
1. Interpretation of terms relating to trading stock
In the provisions of this Schedule relating to the trading stock of a person—“cost price” includes the freight charges, insurance premium, duty and other costs and expenses incurred by the person in bringing the trading stock to hand;“date of valuation”, in relation to trading stock referred to in subparagraphs (i) to (iv) of paragraph (h) of the definition of “gross income” in subsection (1) of section eight, means—(a)in the case of trading stock referred to in subparagraphs (i) and (iv) of that paragraph, the last day of the year of assessment; and(b)in the case of trading stock referred to in subparagraphs (ii) and (iii) of that paragraph, the date on which the trading stock was taken, given, disposed of or sold or vested, as the case may be;“farm trading stock” means—(a)livestock acquired or bred by a farmer for the purposes or in the carrying on of his farming operations; and(b)crops and other produce produced or partially produced by a farmer in the carrying on of his farming operations.Part II – Valuation of trading stock other than farm trading stock
2. Interpretation in Part II
(1)In this Part—“market value”, in relation to the trading stock of a person—(a)means an amount equal to the consideration for which other trading stock of the same kind, quality and condition is disposed of in the ordinary course of trade by other persons carrying on the same trade in like circumstances;(b)does not include any amount attributable to freight, handling and selling charges and commission incurred in the disposal in the ordinary course of trade of trading stock normally disposed of through an agent.(2)If in the opinion of the Commissioner there is insufficient evidence of the market value of trading stock at the date of valuation, the market value of the trading stock at that date shall, notwithstanding the definition of “market value” in subparagraph (1), be an amount which he considers to be fair and reasonable.3. Application of Part II
This Part shall not apply to the farm trading stock of a farmer.4. Valuation of trading stock referred to in subparagraphs (ii), (iii) and (iv) of paragraph (h) of the definition of “gross income”
Subject to paragraph 7, the value of the trading stock of a person shall, for the purpose of subparagraphs (i), (iii) and (iv) of paragraph (h) of the definition of “gross income” in subsection (1) of section eight, be an amount equal to—(a)the cost price to the person; or(b)the cost of replacement at the date of valuation; or(c)the market value at the date of valuation;of each item of the trading stock, whichever the person or, as the case may be, his trustee may elect at the time of the return of income of the person in which the trading stock is included:Provided that—(i)if the Commissioner is satisfied that it is impossible or impracticable to determine the value of trading stock as in this paragraph is provided he may accept such other method of valuation as he considers the circumstances warrant;(ii)if trading stock—(a)has been given by the person to some other person; or(b)has been disposed of by the person otherwise than by sale or exchange; or(c)has been disposed of by the person otherwise than in the manner described in subparagraph (ii) or subparagraph A of subparagraph (iii) or subparagraph (iv) or subparagraph (v) of paragraph (h) of the definition of “gross income” in subsection (1) of section eight;and the Commissioner is of the opinion that such trading stock has been given away or disposed of in pursuance of a transaction, operation or scheme which has as its sole purpose or one of its main purposes the avoidance or postponement of liability for or the reduction of any tax, the Commissioner shall determine the amount which he considers such trading stock would have realized had it been disposed of by sale in the ordinary course of trade and such amount shall be included in the gross income of the person so giving away or otherwise disposing of such stock.5. Valuation of trading stock referred to in subparagraph (ii) of paragraph (h) of the definition of “gross income”
Subject to paragraph 7, the value of the trading stock of a person shall, for the purposes of subparagraph (ii) of paragraph (h) of the definition of “gross income” in subsection (1) of section eight, be an amount equal to the cost price to the person or the market value of the trading stock, whichever the person may elect.6. Valuation of trading stock referred to in subparagraph (v) of paragraph (h) of the definition of “gross income”
The value of the trading stock of a person shall, for the purposes of subparagraph (v) of paragraph (h) of the definition of “gross income” in subsection (1) of section eight, be the amount at which the trading stock was sold or disposed of.7. Valuation of partially manufactured trading stock, etc.
The value of the trading stock of a person which, at the date of valuation is partially manufactured, produced, constructed, improved, consumed or used shall, for the purposes of subparagraphs (i) to (iv) of paragraph (h) of the definition of “gross income” in subsection (1) of section eight, be an amount which the Commissioner considers to be the fair and reasonable value of the trading stock at the date of valuation.Part III – Valuation of trading stock which is farm trading stock
8. Interpretation in Part III
In this Part—“class of livestock” means a class of livestock approved by the Commissioner for the purposes of this Part;“cost and maintenance value”, in relation to the ordinary livestock of a farmer, means the sum of—(a)the amount, as nearly as it can be ascertained, of the cost price to the farmer of the livestock or, as the case may be, the cost incurred by the farmer in breeding the livestock; and(b)the cost to the farmer of maintaining the livestock in the year of assessment and any preceding year of assessment;“fixed standard value”, in relation to—(a)a class of ordinary livestock of a farmer, means the standard value fixed by the farmer in terms of subparagraph (a) of subparagraph (2) of paragraph 10;(b)a class of stud livestock of a farmer, means—(i)in the case of an animal in that class the cost price to the farmer of which was less than one hundred and fifty United States dollars, the standard value fixed by the farmer in terms of subparagraph (b) of subparagraph (2) of paragraph 10; and(ii)in the case of an animal in that class the cost price to the farmer of which was one hundred and fifty United States dollars or more—(A)the standard value fixed by the farmer in terms of subparagraph (b) of subparagraph (2) of paragraph 10; or(B)one hundred and fifty United States dollars;whichever the farmer in terms of that subparagraph may elect;“ordinary livestock” means livestock which is not stud livestock;“purchase price value”, in relation to the stud livestock of a farmer, means—(a)in the case of an animal the cost price to the farmer of which was less than fifteen thousand dollars, the cost price of the animal; and(b)in the case of an animal the cost price to the farmer of which was fifteen thousand dollars or more—(i)the cost of the animal; or(ii)one hundred and fifty United States dollars; whichever the farmer may elect;“stud livestock” means livestock bought by a farmer for stud purposes.9. Application of Part III
This Part shall apply to the farm trading stock of a farmer.10. Methods of valuation of livestock
(1)For the purposes of this Part, the livestock of a farmer shall be valued—(a)in the case of a class of ordinary livestock, by reference to—(i)the fixed standard value of the livestock; or(ii)the cost and maintenance value of the livestock;whichever the farmer in his first return of income in which that class of livestock is included may elect; and(b)in the case of a class of stud livestock, by reference to—(i)the purchase price value of each animal; or(ii)the fixed standard value of the livestock;whichever the farmer in his first return of income in which that class of livestock is included may elect:Provided that a farmer who ceases to carry on farming operations after having made an election in terms of subparagraph (a) or (b) or under the similar provisions of a previous law shall be required to make a new election should he subsequently again commence farming operations and such election shall be made in the first return of income in which ordinary or stud livestock are included after he again commenced farming operations.(2)If a farmer elects in terms of subparagraph (1) to value a class of livestock by reference to the fixed standard value of that class of livestock, the farmer shall at the time of the election—(a)in the case of each class of his ordinary livestock, fix, with the approval of the Commissioner, the standard value which shall be applicable to all animals in that class; and(b)in the case of each class of his stud livestock—(i)fix, with the approval of the Commissioner, the standard value which shall be applicable—(A)to all animals in that class the cost price to the farmer of each of which was less than one hundred and fifty United States dollars; and(B)if the farmer so elects, to any animal in that class the cost price to the farmer of which was one hundred and fifty United States dollars or more;and(ii)make the election referred to in subparagraph B of subparagraph (i):Provided that in any case where the Commissioner is unable to approve of a standard value fixed by a farmer in terms of subparagraph (a) or (b), the Commissioner shall fix such standard value.(3)If a farmer elects in terms of subparagraph (b) of subparagraph (1) to value a class of his stud livestock by reference to the purchase price value of each animal, the farmer shall, at the time of the election, make the election to which subparagraph (b) of the definition of “purchase price value” in paragraph 8 relates.11. Alteration in methods of valuation and fixed standard values
(1)With the approval of the Commissioner a farmer may, subject to such conditions as the Commissioner may fix—(a)change the method of valuation of his livestock; and(b)alter the standard value of any class of his livestock which was fixed by the farmer in terms of subparagraph (2) of paragraph 10.(2)Save as is provided in subparagraph (1), an election to which this Part relates shall be irrevocable.12. Valuation of farm trading stock referred to in subparagraphs (i), (iii) and (iv) of paragraph (h) of the definition of “gross income”
The value of the farm trading stock of a farmer shall, for the purpose of subparagraphs (i), (iii) and (iv) of paragraph (h) of the definition “gross income” in subsection (1) of section eight, be an amount equal to—(a)in the case of livestock, the value of the livestock at the date of valuation determined in accordance with the method of valuation elected by the farmer in terms of subparagraph (1) of paragraph 10; and(b)in the case of all other farm trading stock, an amount which the Commissioner considers to be the fair and reasonable value of the farm trading stock at the date of valuation:Provided that if farm trading stock—(a)has been given by the farmer to some other person; or(b)has been disposed of by the farmer otherwise than by sale or exchange; or(c)has been disposed of by the farmer otherwise than in the manner described in subparagraph (ii) or subparagraph A of subparagraph (iii) or subparagraph (iv) or subparagraph (v) of paragraph (h) of the definition of “gross income” in subsection (1) of section eight;and the Commissioner is of the opinion that such farm trading stock has been given away or disposed of in pursuance of a transaction, operation or scheme which has as its sole purpose or one of its main purposes the avoidance or postponement of liability for or the reduction of any tax, the Commissioner shall determine the amount which he considers such farm trading stock would have realized had it been disposed of by sale in the ordinary course of trade and such amount shall be included in the gross income of the farmer so giving away or otherwise disposing of such farm trading stock.13. Valuation of farm trading stock referred to in subparagraph (ii) of paragraph (h) of the definition of “gross income”
The value of the farm trading stock of a farmer shall, for the purposes of subparagraph (ii) of paragraph (h) of the definition of “gross income” in subsection (1) of section eight, be an amount which the Commissioner considers to be the fair and reasonable value of the farm trading stock at the date of valuation.14. Valuation of farm trading stock referred to in subparagraph (v) of paragraph (h) of the definition of “gross income”
The value of the farm trading stock of a farmer shall, for the purposes of subparagraph (v) of paragraph (h) of the definition of “gross income” in subsection (1) of section eight, be an amount at which the farm trading stock was sold or disposed of.Third Schedule (Section 14)
Exemptions from income tax
1.The receipts and accruals of—(b)the Reserve Bank of Zimbabwe;(c)the Zambezi River Authority;(d)the Natural Resources Board;(e)the Post Office Savings Bank referred to in section 3 of the Post Office Savings Bank Act ;(f)the wholly owned company of the Reserve Bank of Zimbabwe called the Zimbabwe Asset Management Corporation (Private) Limited (ZAMCO), incorporated in terms of the Companies Act on the 15th July 2014, with effect from that date.2.The receipts and accruals of—(a)agricultural, mining and commercial institutions or societies not operating for the private pecuniary profit or gain of the members;(c)building societies, and financial institutions providing mortgage finance, but only to the extent that the receipts or accruals of such financial institutions are attributable to the provision of mortgage finance by them.In this subparagraph—“building society” means a building registered in terms of the Building Societies Act ;“financial institution” means any banking institution registered in terms of the Banking Act ;“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.”;(d)clubs, societies, institutes and associations organized and operated solely for social welfare, civic improvement, pleasure, recreation or the advancement or control of any profession or trade or other similar purposes if such receipts or accruals, whether current or accumulated, may not be divided amongst or credited to or enure to the benefit of any member or shareholder other than by way of remuneration for services rendered;(e)ecclesiastical institutions, and charitable and educational institutions of a public character—(i)consisting of donations, tithes, offerings or other contributions by the members or benefactors of the institutions concerned, and any other receipts or accruals that are not receipts and accruals of income from trade or investment carried on by or on behalf of the institutions concerned; or(ii)that are receipts and accruals of income from trade or investment by any company of which that institution is the sole or principal member, and in respect of which the Minister responsible for the Companies Act has issued a licence in terms of section 26 of that Act;(f)employees saving schemes or funds approved by the Commissioner;(g)friendly, benefit or medical aid societies;(h)funds established by the Treasury in terms of section 30 of the Audit and Exchequer Act ;(i)pension funds, until such date as the Minister may specify by notice in the Gazette;(j)any statutory corporation which is declared by the Minister, by notice in the Gazette, to be exempt from income tax;Provided that the Minister may limit any such declaration to such of the statutory corporation’s receipts and accruals as he may specify in the notice;(l)trusts of a public character.(m)the Deposit Protection Fund established in terms of section 66 of the Banking Act .(n)with effect from the 1st January, 2013, the investor Protection Fund established (in terms of the Securities Regulations, 2010, published in to protect investors in publicly-quoted securities;(o)with effect from the 1st January, 2014, the Insurance and Pensions Housing Company established to secure financing for home seekers that is guaranteed by the State, of which the shareholders are the Ministry of Finance, the Insurance and Pensions Commission and associations representing pension funds and life and funeral insurers.3.The receipts and accruals of—(a)any agency of any government, other than the Government of Zimbabwe, approved by the Minister by notice in a statutory instrument;(b)any international organization specified in terms of section 7 of the Privileges and Immunities Act which has been approved by the Minister by notice in a statutory instrument;(c)the organizations referred to in the International Financial Organizations Act ;(d)the African Development Bank referred to in the African Development Bank (Membership of Zimbabwe) Act ;(e)the African Development Fund referred to in the African Development Fund (Zimbabwe) Act ;(e1)the South African Reserve Bank;(f)any foreign organization that provides finance for development in Zimbabwe, to the extent that its receipts and accruals are from a project approved for the purposes of this subparagraph by the Minister;(g)any person who—(i)is entitled to an exemption in respect of such receipts or accruals in terms of any agreement entered into by the Government of Zimbabwe with any other government or organization; and(ii)is approved by the Minister by notice in a statutory instrument; to the extent provided in the agreement concerned;(h)any bank or other financial institution outside Zimbabwe in connection with a loan or other facility granted to the Reserve Bank of Zimbabwe in terms of paragraph (m) of subsection (1) of section 9 of the Reserve Bank of Zimbabwe Act ;(i)any company which has as its principal object the provision of venture capital for development purposes and which is approved by the Minister by statutory instrument;(j)of financial institutions in the form of income from Treasury Bills, if the terms sheet subject to which the Treasury Bills in question were issued specified that their income was tax-free.4.An amount accruing by way of—(a)salary and emoluments paid in respect of his office to—(ii)a member of the staff of the President in so far as such salary and emoluments are paid by the President;(iii)any person who is entitled to exemption or relief from income tax in respect of such salary or emoluments in terms of the Privileges and Immunities Act ;(iv)any person who—(A)is entitled to exemption or relief from income tax in respect of such salary or emoluments in terms of any agreement entered into by the Government of Zimbabwe with any other government or international, regional or foreign organization; and(B)is approved by the Minister by notice in a statutory instrument;(a1)any allowance payable to a spouse of the President or a Vice-President in respect of duties the spouse performs for or on behalf of the State;(a2)any allowance payable by the State to the spouse of a former President;(b)an allowance granted to a Minister or Deputy Minister, provincial governor, the Speaker, the Deputy Speaker, the Leader of the Opposition, a Chief Whip or a member of Parliament if it is specified for the purposes of this paragraph by the President by notice in a statutory instrument with effect from such date, whether before, on or after the date of the notice, as the President may specify therein;(c)the value of the grant of quarters, a residence, furniture or a motor vehicle to a Minister or Deputy Minister or the Speaker if it is specified for the purposes of this paragraph by the President by notice in a statutory instrument;(d)any allowance or the value of any benefit which is granted to any person in the full-time employment of the State and which is specified for the purposes of this subparagraph by the President by notice in a statutory instrument with effect from such date, whether before, on or after the date of the notice, as the President may specify therein;(d1)any gratuity payable to a judge of the Supreme Court or the High Court in terms of his conditions of service;(e)an allowance payable to a chief or headman in his capacity as chief or headman;(f)an allowance payable by reason of the overseas service of a member of the Defence Forces which is declared to be active service in terms of any law relating to defence;(g)one of the following allowances granted to a person who is not in full-time military or police employment, as the case may be—(i)a quarterly allowance granted to a commissioned officer in the Defence Forces; or(ii)a volunteers allowance granted to a member of the Defence Forces; or(iii)an annual allowance granted to a commissioned officer in the Police Constabulary established in terms of section 27 of the Police Act ;(h)a gratuity given in conjunction with the award of—(i)the Fire Brigades Long Service Medal; or(ii)the Medal for Long Service and Good Conduct (Military);(i)a gratuity given to a member of the Police Force who has become eligible for the award of a medal as a reward for long service;(j)an allowance payable by the State to a person in its service in respect of—(i)the expenditure incurred by the person in the discharge of his duties outside Zimbabwe; or(ii)so much of the expenditure of the person in maintaining himself, his family or establishment whilst employed on duty outside Zimbabwe as exceeds the expenditure he would normally incur if he were employed in Zimbabwe;(k)the value of the grant of rations to a member of the Defence Forces or the Police Force for any period during which he is in the field engaged on operational military duties;(l)a gratuity given in conjunction with the grant of any honour or award created in terms of section 3 of the Honours and Awards Act ;(m)a scholarship, bursary, payment in respect of tuition fees or other educational allowance to a student receiving instruction at a school, college or university, but not including an amount accruing to the student by way of remuneration for services rendered or to be rendered by the student or a near relative of the student;(n)a monthly personal allowance payable to a councillor, in his capacity as a councillor, in terms of section 112 of the Urban Councils Act ;(o)a bonus or performance-related award accruing to an employee or agent in respect of his or her employment or agency, to the extent that the bonus does not exceed or, where the employee or agent receives more than one bonus in the year of assessment concerned, to the extent that the aggregate of the bonuses does not exceed one thousand United States dollars;(p)the first ten thousand United States dollars or one-third, whichever is the greater, of the amount of any severance pay, gratuity or similar benefit, other than a pension or cash in lieu of leave, which is paid to an employee on the cessation of his or her employment, where his or her employment has ceased due to retrenchment:Provided that the exemption provided in this subparagraph shall apply only in respect of the first sixty thousand United States dollars of any such pay, gratuity or benefit payable to him or her in any one year of assessment.(s)a reward paid to a person by the Commissioner-General in terms of section 34B of the Revenue Authority Act ;(t)the value of an allowance in respect of accommodation and transport, or the value of the grant of quarters or a residence to any member of staff of a mission hospital or rural clinic.In this subparagraph “mission hospital or rural clinic” means a private hospital or rural clinic owned, operated or sponsored by any religious body or a hospital or rural clinic owned or operated by a rural district council.(t)an award paid to a person from the Recovered Foreign Currency Fund in terms of section 10 of the Exchange Control Act ;(v)rental income to a taxpayer who is of or over the age of fifty-five in respect of the first three thousand United States dollars accruing to the taxpayer in the year of assessment concerned.5.An amount accruing by way of—(a)a pension or allowance payable in terms of the Presidential Pension and Retirement Benefits Act ;(b)the value of a service or facility provided in terms of the Presidential Pension and Retirement Benefits Act .6.An amount accruing by way of—(a)a war disability pension;(b)a war widow’s pension:(i)a pension payable in terms of a scheme established in terms of section 7 of the War Veterans Act ;(ii)a gratuity payable to a war veteran in terms of section 4 of the War Veterans (Benefits Scheme) Regulations, 1997, published in terms of section 7 of the War Veterans Act ;(c)a pension in terms of the Old Age Pensions Act ;(e)an award, benefit or compensation, including a pension, to any person or his dependants or heirs under any law in respect of injury, disease, disablement or death suffered in employment;(f)an award, benefit or compensation, including a pension, to any person or his dependants in respect of personal injury, disablement or death which has been paid or is deemed to have been paid in terms of the War Victims Compensation Act or any law repealed by that Act;(g)an award, benefit or compensation, including a pension, to any person or his dependants which has been paid from the Wankie Disaster Relief Fund;(h)a pension paid from a pension fund or the Consolidated Revenue Fund to a taxpayer who attained the age of fifty-five years before the commencement of the year of assessment.(h1)an mount referred to in section 8(1)(r) that is received by a person who has not attained the age of fifty-five years before the commencement of the year of assessment, to the extent of the first ten thousand United States dollars or one third of such amount, whichever is the greater, of the amount of any pension commutation or annuity, which is paid to an employee on the cessation of his or her employment, where his or her employment has ceased due to retrenchment:Provided that the exemption in this subparagraph shall apply only in respect of the first sixty thousand United States dollars of any deemed pension or annuity payable to him or her in any one year of assessment;(i)a pension payable in terms of a scheme established in terms of section 7 of the War Veterans Act ;(j)a gratuity payable to a war veteran in terms of section 4 of the War Veterans (Benefits Scheme) Regulations, 1997, published in terms of section 7 of the War Veterans Act ;7.An amount accruing by way of a benefit in respect of the injury, sickness or death of a person which is paid to the person or his dependants or deceased estate—(b)from a benefit fund; or(c)in terms of a policy of insurance covering accident, sickness or death; or(d)by a medical aid society.8.(1)The value of medical treatment or of travelling to obtain such treatment which is provided by an employer for an employee or the dependant of an employee, whether provided in kind, by direct payment, by refund or in any other manner whatsoever.(2)The amount of any contributions paid to a medical aid society by an employer on behalf of his employees.(3)Half the amount or value of a school benefit referred to in paragraph (f)I(a)(vi) of the definition of “advantage or benefit” in section 8(1) in the definition of “gross income.Provided that this exemption shall not apply to more than three of the children of the employee concerned.9.An amount received by or accrued to or in favour of a person by way of a dividend from a company which is incorporated in Zimbabwe and is charged or chargeable to income tax. (This exemption does not, however, apply to any amount received by or accrued to or in favour of a person by way of a dividend deemed to have been paid in terms of section 26(2) or 28(2)).[paragraph substituted by Act 3 of 201710.(1)An amount accruing by way of interest paid on—(a)any savings certificate issued in terms of any law;(b)a sum deposited in the Post Office Savings Bank of Zimbabwe;(c)any tax reserve certificate issued in terms of the Tax Reserve Certificates Act ;(d)a loan raised by the State subject to the condition that interest on the loan shall be exempt from income tax;(e)a loan raised by the State which is declared by the Minister, by statutory instrument, to be exempt from income tax;(f)any loan made by the European Investment Bank established by Article 129 of the Treaty establishing the European Economic Community;(g)any loan to the Infrastructure Development Bank of Zimbabwe established by section 3 of the Infrastructure Development Bank of Zimbabwe Act made by an institutional shareholder as defined in that Act who is not ordinarily resident in Zimbabwe;(h)class “C” permanent shares as defined in the Building Societies (Class “C” Shares) Regulations, 1986, to the extent and subject to the conditions specified in those regulations;(k)any so called “agricultural bond” issued by the Agricultural Finance Corporation and a consortium of commercial banks.(l)any bond issued by the Reserve Bank of Zimbabwe on behalf of the National Fuel Investments Company (Private) Limited.(m)any “agricultural bond” issued by a consortium of commercial banks led by Syfrets Corporate and Merchant Bank (Sybank) for the purpose of advancing the proceeds to support the beneficiaries of the resettlement programme which commenced under the terms of the Land Acquisition Act on the 23rd May, 2000;(n)any deposit with a financial institution accruing to a taxpayer who is of or over the age of fifty-five years, in respect of the first three thousand United States dollars accruing to the taxpayer in the year of assessment concerned; orFor the purpose of this subparagraph—“deposit” means an amount of money, whether made up of Zimbabwean or foreign currency or both, cheques or other negotiable or non-negotiable instruments, which a financial institution accepts for credit to an account in its books or in those of another institution inside or outside Zimbabwe;“financial institution” means—(a)the Reserve Bank of Zimbabwe referred to in section 4 of the Reserve Bank of Zimbabwe Act ; or(b)any banking institution registered in terms of the Banking Act ; or(c)any building society registered in terms of the Building Societies Act ; or(d)an asset manager as defined in the Asset Management Act (Act No. 16 of 2004); or(e)a collective investment scheme as defined in section 3 of the Collective Investment Schemes Act, 1997;(o)banker’s acceptances and other discounted instruments traded by financial institutions and accruing to a taxpayer who is of or over the age of fifty-five years, in respect of the first three thousand United States dollars accruing to the taxpayer in the year of assessment concerned.(p)any “Diaspora Bond” issued by the Commercial Bank of Zimbabwe (CBZ).(q)with effect from the 8th November, 2011, any Agricultural Marketing Authority bill issued by the Agricultural Marketing Authority established in terms of the Agricultural Marketing Authority Act (Act No. 26 of 2004).(q)any loan made to a small-scale gold miner for carrying on mining operations or undertaking prospecting or exploratory works for the purpose of acquiring rights to mine gold as is used by the small-scale gold miner in carrying on or undertaking such operations or works in Zimbabwe.For the purposes of this paragraph—“small-scale gold miner” means a miner who, whether working on his or her own or with the assistance of one or more employees, is classifiable as a “micro-enterprise” in the mining and quarrying sector of the economy by reference to the Fourth and Fifth Schedules to the Small and Medium Enterprises Act ;(r)interest on any deposit in the low cost housing savings instrument as defined in the regulations to be prescribed by the Minister:Provided that the regulations in question shall be laid before the National Assembly and not come into force until the lapse of fourteen sitting days after they are so laid, unless the House has earlier passed a resolution annulling the regulations.(r)deposits with a tenure of more than twelve months;(s)any loan to any statutory corporation approved by the Minister by General Notice in the Gazette.(2)In subparagraph (1)—“foreign currency account” means an account held at a bank or other financial institution in Zimbabwe in which the funds are denominated in a foreign currency;“loan” includes any form of indebtedness known as an acceptance or standby credit facility.10A.An amount accruing by way of interest, as defined in the Twenty-First Schedule, from which residents’ tax on interest is required to be withheld in terms of that Schedule.11.(1)Subject to subparagraph (2), an amount by way of interest received by or accrued to or in favour of a person who, at the time the interest accrues, is not ordinarily resident and does not carry on business within Zimbabwe—(a)on so much of any loan made to a person carrying on mining operations or undertaking prospecting or exploratory works for the purpose of acquiring rights to mine minerals as is used by the person in carrying on or undertaking such operations or works in Zimbabwe; and(b)on any loan to the State or any company all the shares of which are owned by the State; and(c)on any loan to a local authority; and(d)on any loan to a statutory corporation; and(2)In subparagraphs (b) and (d) of subparagraph (1), “loan” includes any form of indebtedness known as an acceptance or standby credit facility.(3)Subparagraph (1) shall not apply to interest received by or accrued to or in favour of—(a)a person ordinarily resident in a country other than Zimbabwe which would, but for this subparagraph, be liable to tax in that country by reason of its exemption from tax in Zimbabwe; or(b)a company which, at the time the interest accrues, is under the control of a person who at that time is ordinarily resident or carries on business within Zimbabwe; or(c)a company incorporated outside Zimbabwe from a company incorporated in Zimbabwe if—(i)the majority of the voting rights attaching to all classes of shares in the company incorporated within Zimbabwe is controlled, directly or indirectly, by the company incorporated outside Zimbabwe; and(ii)the interest is liable to tax in a country other than Zimbabwe; and(iii)the income tax which would, but for the provisions of this paragraph, be chargeable on the interest, would be allowable as a credit against tax payable in the country referred to in subparagraph (ii).12.An amount received by way of alimony, howsoever paid.13.An amount accruing by way of the sale of traditional beer in terms of the Traditional Beer Act to the extent that such amount is devoted to the purposes to which a person authorized under that Act to sell such beer is in terms of that Act required to devote such amount.14.An amount paid by the State to an exporter of goods in terms of a Scheme for the development of export trade, excluding the amount of any duty refunded in terms of the Customs and Excise Act .15.Any amount received by way of an allowance referred to in paragraph (m) of subsection (1) of section sixteen to the extent that it is expended on the business of the employer.16.With effect from the 1st June, 2016, and every subsequent year of assessment, the amount of the premium paid by the Reserve Bank of Zimbabwe pursuant to the Export and Foreign Remittance Incentive scheme on receipts of earnings by exporters and on remittances from abroad received by individuals resident in Zimbabwe, being receipts or remittances channelled through any authorised dealer in terms of the Exchange Control Act .17.The receipts and accruals of an industrial park developer, to the extent that they accrue directly from the operation of his industrial park, in the year of assessment in which the industrial park is established or is approved by the Minister for the purposes of the definition of “industrial park” in section two, whichever year is the earlier, and in each of the next four following years of assessment.18.An amount received by way of the sale, disposal or transfer of any duty exemption certificate issued by the Reserve Bank of Zimbabwe to an exporter qualifying for a rebate of duty on imports in terms of an export incentive scheme under which such certificates are issued.19.An amount received by or accrued to or in favour of an employee participating in an approved employee share ownership trust from the sale to or redemption by the trust of any stock, shares, debentures, units or other interest of the employee in the scheme or trust of any stock, shares, debentures, units or other interest of the employee in the trust.20.The receipt and accruals of a power generation project as defined in section 14(1) of the Finance Act to the extent that they accrue directly from the operations of the power generation project in any of the five years of assessment referred to in section 14(2)(e1) of the Finance Act .Fourth Schedule (Section 15(2)(c))
Deductions to be allowed in respect of buildings, improvements, machinery and equipment used for commercial, industrial and farming purposes, and other provisions relating thereto
1. Interpretation
(1)In this Schedule—“articles, implements, machinery and utensils” includes tangible or intangible property in the form of computer software that is acquired, developed or used by a taxpayer for the purposes of his or her trade, otherwise than as trading stock;“associated company” means a company which controls, is controlled by or is under common control with a taxpayer;“commercial building” means any building the erection of which was commenced on or after the 1st April, 1975, and which is used to the extent of at least ninety per centum of the floor area for the purposes of trade or in the production of income but does not include—(a)a farm improvement, an industrial building, staff housing or a tobacco barn; or(b)a building which is occupied to the extent of ten per centum or more of the floor area for residential purposes by one or more persons and which is not—(i)a block of flats, apartments or similar units of residential accommodation; or(ii)a hotel that is registered under the Tourism Act ; or(c)a building which is a block of flats, apartments or similar units of residential accommodation where—(i)the building is owned by a company, partnership or association of persons; and(ii)the shareholders of the company, partners or members of the association, as the case may be, have the right, by virtue of or in connection with the ownership of the shares or of their being partners or members, as the case may be, to occupy particular flats, apartments or other units of residential accommodation in the building;“computer software” means any set of machine-readable instructions that directs a computer’s processor to perform specific operations;“farm improvement” means—(a)any building or structure or work of a permanent nature, including any water furrow, which is used in the carrying on of farming operations, but does not include—(i)any building, structure or work of a permanent nature referred to in paragraph 2 of the Seventh Schedule; or(ii)staff housing or any dwelling—(A)used by the taxpayer as the homestead of himself and his family; or(B)purchased or constructed after the year of assessment beginning on the 1st April, 1979; or(b)any permanent building the erection of which was commenced on or after the 1st April, 1988, used for the purposes of—(ii)a hospital, nursing home or clinic;in connection with taxpayer’s farming operations;“industrial building”—(a)means—(i)any building which contains and is used mainly for the purposes of operating machinery worked by steam, electricity, water or other mechanical power;(ii)any building which is on the same premises as any other building mentioned in subparagraph (i) and which, in the opinion of the Commissioner, suffers depreciation by reason of the operation of machinery installed in such other building;(iii)any building which, in the opinion of the Commissioner, suffers depreciation by reason of the use of chemicals, corrosives, furnaces of any description or any other agent directly utilized in the particular trade or industry of which the building forms an integral and essential part;(iv)any building erected and used mainly for the purpose of carrying out industrial research or scientific experiments into improved or new methods of manufacture;(v)any building used mainly for a hotel business in respect of which a hotel liquor licence or casino licence, not being a temporary licence, has been issued, and includes ancillary buildings, structures and works of a permanent nature which are, in the opinion of the Commissioner, used mainly in connection with such a business;(vi)any buildings in use mainly for the storage—(A)of goods or materials which are to be used by the taxpayer in the manufacture of other goods or materials; or(B)of goods or materials which are to be subjected by the taxpayer, in the course of a trade, to any manufacturing process; or(C)of goods or materials which, having been manufactured or subjected by the taxpayer in the course of a trade to any manufacturing process, have not yet been delivered to any purchaser;(vii)any building in use mainly for the purposes of a trade which consists in the distribution of hydro-carbon oils by pipeline;(viii)any building in use mainly for the purposes of a trade which consists in the manufacture of goods or materials, including any building used for the welfare of workers employed in the trade but excluding any building used mainly as a dwelling—house, retail shop or showroom or for the storage of goods or materials;(ix)any works for the prevention of pollution;(x)any building erected and used mainly for the purpose of international data capture operations and additionally, or alternatively, for the assembly of computers;(xi)any toll-road or toll-bridge declared in terms of the Toll-roads Act ;and(b)includes any fencing or permanent sealing of the ground area surrounding such building; “process of manufacture” includes the grading, processing and packing of tobacco and “manufacture”, “manufacturer” and “manufacturing process” shall be construed accordingly;“railway lines” means the rails, sleepers and equipment pertaining thereto of any railway track but does not include ballast, embankments, bridges, culverts and other railway constructions;“residential unit” means an apartment, flat, house whether detached, semi-detached or terraced, or similar unit of residential accommodation;“staff housing” means any permanent building used by the taxpayer for the purposes of his trade wholly or mainly for the housing of his employees, but does not include—(a)in the case of any such building the erection of which was commenced before the 1st April, 1984, any building comprising or incorporating any residential unit the cost of which exceeds five thousand dollars; or(b)in the case of any such building the erection of which was commenced on or after the 1st April, 1984, but before the 1st April, 1986, any building comprising or incorporating any residential unit the cost of which exceeds eight thousand dollars;(c)in the case of any such building the erection of which was commenced on or after the 1st April, 1986, but before the 1st April, 1988, any building comprising or incorporating any residential unit the cost of which exceeds ten thousand dollars;(d)in the case of any building the erection of which was commenced on or after the 1st April, 1988, but before the 1st April, 1991, any building comprising or incorporating any residential unit the cost of which exceeds fifteen thousand dollars;(e)in the case of any such building the erection of which was commenced on or after the 1st April, 1991, but before the 1st April, 1992, any building comprising or incorporating any residential unit the cost of which exceeds sixty-five thousand dollars;(f)in the case of any such building the erection of which was commenced on or after the 1st April, 1992, but before the 1st April, 1995, any building comprising or incorporating any residential unit the cost of which exceeds seventy-five thousand dollars;(g)in the case of any such building the erection of which was commenced on or after the 1st April, 1995, but before the 1st January, 1999, any building comprising or incorporating any residential unit the cost of which exceeds one hundred thousand dollars; or(h)in the case of any such building the erection of which was commenced on or after the 1st January 1999, but before the 1st January, 2001, any building comprising or incorporating any residential unit the cost of which exceeds two hundred thousand dollars.(i)in the case of any such building the erection of which was commenced on or after the 1st January, 2002, but before the 1st January, 2003, any building comprising or incorporating any residential unit the cost of which exceeds five hundred thousand dollars;(j)in the case of any such building the erection of which was commenced on or after the 1st January, 2003, but before the 1st January, 2004, any building comprising or incorporating any residential unit the cost of which exceeds three million dollars;(k)in the case of any such building the erection of which was commenced on or after the 1st January, 2004 but before the 1st January, 2005, any building comprising or incorporating any residential unit the cost of which exceeds fifty million dollars;(l)in the case of any such building the erection of which was commenced on or after the 1st January, 2005, any building comprising or incorporating any residential unit the cost of which exceeds two hundred and seventy million dollars.(m)in the case of any such building the erection of which was commenced on or after the 1st January, 2006 but before the 1st January, 2007, any building comprising or incorporating any residential unit the cost of which exceeds one billion five hundred million dollars.(n)in the case of any such building the erection of which was commenced on or after the 1st January, 2007 but before the 1st January, 2008, any building comprising or incorporating any residential unit the cost of which exceeds sixteen million dollars;(o)in the case of any such building the erection of which was commenced on or after the 1st January, 2008 but before the 1st January, 2009, any building comprising or incorporating any residential unit the cost of which exceeds one hundred billion dollars or an amount equivalent to fifty per centum of the cost of constructing the building, whichever is the lesser amount;(p)in the case of any such building the erection of which was commenced on or after the 1st January, 2009, any building comprising or incorporating any residential unit the cost of which exceeds twenty-five thousand United States dollars;“tobacco barn” means any building used for the curing of tobacco;“trade training” means any education or training, other than any education or training which is provided as part of the general school education of a pupil, which is intended to train persons to perform work in connection with the trade of the taxpayer or of an associated company or to improve their performance of such work;“training building” “training equipment” (3)For the purposes of this Schedule, a building shall not be deemed to be used for the purposes of—(b)a hospital, nursing home or clinic;in connection with a taxpayer’s farming operations, unless it is proved to the satisfaction of the Commissioner that, at the relevant time—(i)in the case of a school, more than one-half of the pupils are children of persons employed by the taxpayer in carrying on farming operations;(ii)in the case of a hospital, nursing home or clinic, more than one-half of the persons receiving treatment thereat are employed by the taxpayer in carrying on farming operations or are members of the families of persons who are so employed.2. Deduction of special initial allowance
If the taxpayer so elects (which election shall be binding) an allowance (hereinafter called a special initial allowance) in respect of capital expenditure incurred by the taxpayer during the year of assessment on—(a)the construction of new farm improvements, industrial building, railway lines, staff housing or tobacco barns; or(b)additions or alterations to existing farm improvements, industrial buildings, railway lines, staff housing or tobacco barns; or(c)the purchase of articles, implements, machinery or utensils;used by the taxpayer during such year of the purposes of his trade subject to the conditions mentioned in, and calculated in accordance with, paragraphs 9 and 10:Provided that—(i)if farm improvements, industrial buildings, railway lines, staff housing or tobacco barns are constructed or articles, implements, machinery or utensils are purchased in one year of assessment and first put into use in a later year of assessment, then the special initial allowance shall be allowed in the year of assessment in which such asset in first used;(ii)in the case of articles, implements, machinery or utensils, the special initial allowance shall only be allowed if the Commissioner decides, having regard to the use to which such articles, implements, machinery or utensils were put by the taxpayer in the year of assessment in which they were first put into use or the next following year of assessment, that the articles, implements, machinery or utensils were purchased by the taxpayer wholly or almost wholly for the purposes of his trade;(iii)the special initial allowance shall not be allowed in respect of articles, implements, machinery or utensils purchased by the taxpayer and leased to another person for use by him unless the taxpayer establishes to the satisfaction of the Commissioner that—(A)at the termination of the period of the lease, he is entitled to the return of the articles, implements, machinery or utensils concerned and no option to purchase or other right in relation to the acquisition or disposal of the articles, implements, machinery or utensils concerned is or will be given to the lessee or any other person; and(B)the articles, implements, machinery or utensils concerned were not purchased by him for the purpose of being leased to a particular person with the intention of giving that person or any other person an option or other right such as is referred to in paragraph A;(iv)the special initial allowance shall not be allowed in respect of half of the capital expenditure incurred in the purchase of any fiscalised electronic register whose purchase qualifies for relief in terms of section 15(3)(k) of the Value Added Tax Act .3. Deduction of allowance for wear and tear
(1)Subject to subparagraph (2), an allowance in respect of—(a)commercial buildings, farm improvements, industrial buildings, railway lines, staff housing and tobacco barns acquired or constructed and in both cases used by the taxpayer for the purposes of his trade;(b)articles, implements, machinery and utensils belonging to and used by the taxpayer for the purposes of his trade;the value of which, in either case, has been diminished by reason of wear and tear during the year of assessment, and such allowance shall be subject to, and calculated in accordance with, paragraphs 6 and 10 in the case of commercial buildings, farm improvements, industrial buildings, railway lines, staff housing and tobacco barns, and of paragraphs 7 and 10 in the case of articles, implements, machinery and utensils.(2)Where any commercial building, farm improvement, industrial building, railway line, staff housing, tobacco barn, article, implement, machinery or utensil has been the subject of an allowance in terms of paragraph 2, no allowance shall be made in terms of subparagraph (1) in respect of that commercial building, farm improvement, industrial building, railway line, staff housing, tobacco barn, article, implement, machinery or utensil for the year of assessment in which the commercial building, farm improvement, industrial building, railway line, staff housing, tobacco barn, article, implement, machinery or utensil, as the case may be, was first used.4. Deduction for scrapping allowance
An allowance in respect of—(a)commercial buildings, farm improvements, industrial buildings, railway lines, staff housing and tobacco barns acquired or constructed and in both cases used by the taxpayer for the purposes of his trade;(b)articles, implements, machinery and utensils belonging to and used by the taxpayer for the purposes of his trade;which have, in either case, been scrapped during the year of assessment and such allowance shall be a sum equivalent to the cost (or, if in any particular case the Commissioner has declared that any lesser amount shall be regarded as the cost for the purposes of this Schedule or a similar provision of any previous law, the cost so declared) to the taxpayer of such commercial buildings, farm improvements, industrial buildings, railway lines, staff housing, tobacco barns, articles, implements, machinery and utensils after deducting from that cost the total amount of any allowances which have at any time been made in terms of paragraphs 2 and 3 or under similar provisions of any previous law and any amount or the value of any advantage accruing to the taxpayer in respect of the sale or other disposal of any such commercial buildings, farm improvements, industrial buildings, railway lines, staff housing, tobacco barns, articles, implements, machinery and utensils:Provided that if articles, implements, machinery or utensils referred to in this paragraph were used by the taxpayer for the purposes of his trade and for other purposes the allowance shall be reduced by an amount determined by applying the formula—A × B / Cin which—A represents the amount of the allowance which would have been allowed if the articles, implements, machinery or utensils had been used wholly for the purposes of the taxpayer’s trade;B represents the amount by which the Commissioner decides the value of the articles, implements, machinery or utensils was diminished by their use for other purposes;C represents the amount by which the value of the articles, implements, machinery or utensils was diminished by their use for purposes of the taxpayer’s trade and for other purposes.5. Deduction for training investment allowance
6. Calculation of wear and tear allowances for commercial buildings, farm improvements, industrial buildings, railway lines, staff housing and tobacco barns
(1)Subject to subparagraphs (2) and (3), the allowance in terms of paragraph 3 in respect of wear and tear on commercial buildings, farm improvements, industrial buildings, railway lines, staff housing and tobacco barns which have been acquired or constructed by the taxpayer and used for the purposes of his trade shall be—(a)in the case of any commercial building, two and one-half per centum of the cost to the taxpayer of the commercial building allowable in the first year of assessment in which the commercial building is first used and thereafter in subsequent years a sum equal to two and one-half per centum of such cost;(b)in the case of any farm improvement, industrial building, railway line, staff housing or tobacco barn—(i)where no allowance has been made in terms of paragraph 2 in respect of the farm improvement, industrial building, railway line, staff housing or tobacco barn concerned, five per centum of the cost to the taxpayer of the farm improvement, industrial building, railway line, staff housing or tobacco barn allowable in the first year of assessment in which the farm improvement, industrial building, railway line, staff housing or tobacco barn, as the case may be, is first used and thereafter in subsequent years a sum equal to five per centum of such cost;(ii)where an allowance has been made in terms of paragraph 2 in respect of the farm improvement, industrial building, railway line, staff housing or tobacco barn concerned, twenty-five per centum of the cost to the taxpayer of such farm improvement, industrial building, railway line, staff housing or tobacco barn allowable in the year of assessment following that in which the farm improvement, industrial building, railway line, staff housing or tobacco barn was first used, and thereafter in subsequent years a sum equal to twenty-five per centum of such cost.(2)The sum of the allowances that may be made in terms of paragraph 3 in respect of commercial buildings, farm improvements, industrial buildings, railway lines, staff housing or tobacco barns shall not exceed an amount determined by applying the formula—A – (B + C)in which—A represents the cost to the taxpayer of such commercial buildings, farm improvements, industrial buildings, railway lines, staff housing or tobacco barns;B represents the amount of the allowance made to the taxpayer in terms of paragraph 2 or any similar provision of a previous law in respect of such farm improvements, industrial buildings, railway lines, staff housing or tobacco barns;C represents the sum of the allowances made to the taxpayer in terms of any provision of a previous law which is similar to paragraph 3 in respect of such farm improvements industrial buildings, railway lines, staff housing or tobacco barns.(3)The allowance referred to in subparagraph (1) shall be subject to the following provisions—(a)in the case of buildings, structures or works referred to in subparagraph (v) of paragraph (a) of the definition of “industrial building” in paragraph 1 acquired or erected prior to the 1st April, 1964, the sum of the allowances to be made in terms of paragraph 3 shall not exceed an amount determined by applying the formula—D – (E + F)in which—D represents the cost to the taxpayer of the buildings, structures or works and if, for any reason, such cost cannot be ascertained, such cost shall be deemed to be such sum as the Commissioner may determine;E represents the sum of the allowances, similar to the allowance referred to in paragraph 3, which, in terms of the previous law, would have been made each year from the time the buildings, structures or works were acquired or erected by the taxpayer up to and including the year of assessment ended the 31st March, 1964, had the buildings, structures or works, at the time they were acquired or erected, qualified as industrial buildings under the previous law;F represents the sum of the allowances, similar to the allowance referred to in paragraph 3, which were made to the taxpayer in terms of a previous law for the three years of assessment ended the 31st March, 1965, the 31st March, 1966, and the 31st March, 1967;(b)in the case of buildings, structures or works of a permanent nature which have not qualified for the allowance in terms of this Act or a similar allowance in terms of a previous law and which, on or after the date of commencement of this Act, are used by a person for the purposes of his trade as commercial buildings, farm improvements, industrial buildings or railway lines, the sum of the allowances to be made in terms of paragraph 3 shall not exceed an amount determined by applying the formula—G – Hin which—G represents the cost to the taxpayer of such buildings, structures or works and if, for any reason, such cost cannot be ascertained, such cost shall be deemed to be such sum as the Commissioner may determine;H represents the sum of the allowances, similar to the allowance referred to in paragraph 3, which, in terms of this Act or a previous law, would have been made each year from the time the buildings, structures or works were acquired or erected by the taxpayer, had the buildings, structures or works at the time they were acquired or erected, qualified as commercial buildings, farm improvements, industrial buildings or railway lines.7. Calculation of wear and tear allowance for articles, implements, machinery and utensils used for trade
(1)The allowance in terms of paragraph 3 in respect of wear and tear on articles, implements, machinery and utensils belonging to and used by the taxpayer for the purposes of his trade shall be—(a)where no allowance has been made in terms of paragraph 2 in respect of the articles, implements, machinery or utensils concerned, such sum as the Commissioner thinks reasonable as representing the amount by which the value of such articles, implements, machinery or utensils has been diminished by reason of wear and tear during the year of assessment;(b)where an allowance has been made in terms of paragraph 2 in respect of the articles, implements, machinery or utensils concerned, twenty-five per centum of the cost to the taxpayer of such articles, implements, machinery or utensils allowable in the year of assessment following that in which the articles, implements, machinery or utensils were first used, and thereafter in subsequent years a sum equal to twenty-five per centum of such cost:Provided that, where a deduction has been allowed under paragraph (b) of subsection (2) of section fifteen in respect of such articles, implements, machinery or utensils, the Commissioner may take into consideration the deduction allowed under that paragraph.(2)For the purpose of this paragraph, the value of articles, implements, machinery and utensils means the cost thereof to the taxpayer at the time they were acquired, but in the case of articles, implements, machinery or utensils which were acquired before the 1st April, 1967, and which were the subject of a similar allowance under any previous law, the cost thereof shall be reduced by the sums allowed under such previous law and by the amount of any special initial allowance or similar allowance which may also have been made under such previous law.If any articles, implements, machinery or utensils have been—(a)used elsewhere by the taxpayer and transferred to Zimbabwe for use by him in his trade; or(b)used by the taxpayer for a purpose other than that of his trade and then used by him in his trade; or(c)acquired by the taxpayer without payment of any valuable consideration; their value shall be deemed to be such amount as the Commissioner may determine.8. General provisions relating to calculation of allowances
(1)Whenever a change in the ownership of commercial buildings, farm improvements, industrial buildings, railway lines, staff housing or tobacco barns takes place—(a)save as otherwise provided in subparagraph (b) or (c), the transferor and the transferee shall provide the Commissioner with a statement in writing, signed by both, setting out the cost to the transferee of such commercial buildings, farm improvements, industrial buildings, railway lines, staff housing or tobacco barns and if the Commissioner is not satisfied that such cost represents the fair market price thereof, he shall determine the amount which shall be deemed, for the purposes of calculating any allowance in terms of this Schedule, to be the cost of such commercial buildings, farm improvements, industrial buildings, railway lines, staff housing or tobacco barns;(b)where such commercial buildings, farm improvements, industrial buildings, railway lines, staff housing or tobacco barns formed part of any property which has been sold for a lump sum, the transferor and the transferee shall furnish the Commissioner with a statement in writing, signed by both, setting out details of the allocation of the purchase price to the various classes of the property transferred as required by the Commissioner and if the Commissioner is not satisfied that the sum so allocated to the purchase price of commercial buildings, farm improvements, industrial buildings, railway lines, staff housing or tobacco barns, as the case may be, represents the fair market price thereof, he shall determine the amount which shall be deemed, for the purposes of calculating any allowance in terms of this Schedule, to be the cost of such commercial buildings, farm improvement, industrial buildings, railway lines, staff housing or tobacco barns;(c)where the ownership was acquired by the taxpayer without payment of any valuable consideration, the cost of such commercial buildings, farm improvements, industrial buildings, railway lines, staff housing or tobacco barns shall be deemed to be such sum as the Commissioner may determine.(2)Whenever articles, implements, machinery or utensils which have been used for the purposes of a trade are sold, together with other assets, for a lump sum, the transferor and the transferee shall furnish the Commissioner with a statement in writing, signed by both, setting out details of the allocation of the purchase price to the various classes of the assets transferred as required by the Commissioner and if—(a)the Commissioner is not satisfied that the sum so allocated to the purchase price of the articles, implements, machinery or utensils, as the case may be, represents the fair market price thereof; or(b)no such statement is furnished;the cost of such articles, implements, machinery or utensils for the purposes of calculating any allowance in terms of this Schedule, shall be deemed to be such sum as the Commissioner may determine.(3)If the ownership of assets referred to in subparagraphs (1) and (2) is transferred—(a)in the circumstances described in paragraphs (a), (b) and (c) of proviso (iii) or proviso (v) to subsection (3) of section fifteen from one company, with or without an assessed loss, to another company; or(b)from a company, in the course of or in furtherance of a scheme of reconstruction of a group of companies or a merger or other business operation which, in the opinion of the Commissioner, is of a similar nature, to another company under the same control;the transferor and the transferee may elect that the selling price of the assets, for all purposes of this Act and notwithstanding the terms of any agreement of sale or the provisions of subparagraphs (1) and (2), shall be deemed to be the value of the assets, established in the hands of the transferor as a result of the application of this Schedule, at the date of the transfer:Provided that, where any such asset is sold or otherwise disposed of after the transfer other than to another company under the same control, any amount which would have been included in the gross income of any transferor in terms of paragraph (j) of the definition of “gross income” in subsection (1) of section eight, had such transferor retained ownership of the asset, shall be included in the gross income of the transferee effecting such sale or disposal.(4)If the ownership of assets referred to in subparagraphs (1) and (2) is transferred between spouses, the transferor and the transferee may elect that the selling price of the assets for all purposes of this Act and notwithstanding the terms of any agreement of sale or the provisions of subparagraphs (1) and (2), shall be deemed to be the value of the assets, established in the hands of the transferor as a result of the application of this Schedule, at the date of the transfer:Provided that, where any such asset is subsequently sold or otherwise disposed of to a person who is not the spouse of the transferor, any amount which would have been included in the gross income of any transferor in terms of paragraph (j) of the definition of “gross income” in subsection (1) of section eight, had such transferor retained ownership of the asset, shall be included in the gross income of the transferee effecting such sale or disposal.9. Rates of special initial allowance
The special initial allowance referred to in paragraph 2 shall, if it is allowed in the year of assessment beginning—(a)on the 1st April, 1975, be a sum equal to forty per centum;(b)on the 1st April, 1976, be a sum equal to seventy per centum;(c)on the 1st April, 1977, 1978, 1979, 1980, 1981, 1982, 1983, 1984, 1985, 1986, 1987, 1988, 1989. or 1990, be a sum equal to one hundred per centum;(d)on the 1st April, 1991, or the 1st April 1992, be a sum equal to fifty per centum;(e)on the 1st April, 1993, or any subsequent year of assessment ending on the 31st December, 2000, be a sum equal to twenty-five per centum;(f)on the 1st January, 2001, or any subsequent year of assessment, be a sum equal to fifty per centum;(g)on the 1st January, 2011, or in any subsequent year of assessment, be a sum equal to one hundred per centum in the case of a taxpayer which is a “small or medium enterprise” as defined in section 2B of the Charging Act:Provided that fifty per centum shall be allowed in the first year of assessment in which the taxpayer claims the special initial allowance in terms of this subparagraph, and twenty-five per centum in each of the next two years of assessment following that year;(h)on the 1st January, 2010, or on any subsequent year of assessment, ending on the 31st December, 2013, be a sum equal to twenty-five per centum.(h1)on the 1st January, 2010, or on any subsequent year of assessment, ending on the 31st December, 2013, be a sum equal to twenty-five per centum;(h2)on the 1st January, 2017, or on any subsequent year of assessment, be a sum equal to one hundred per centum in the case of a taxpayer which is a “licensed investor” as defined in section 2:Provided that fifty per centum shall be allowed in the first year of assessment in which the taxpayer claims the special initial allowance in terms of this subparagraph, and twenty-five per centum in each of the next two years of assessment following that year;of the capital expenditure incurred by the taxpayer on the construction, additions, alterations or purchase, as the case may be;10. Hire-purchase agreements relating to articles, implements, machinery and utensils and sales of property under suspense conditions
(1)A hire-purchase agreement as defined in the law relating to hire-purchase agreements which relates to articles, implements, machinery, utensils or plant referred to in paragraphs 2, 3 and 4 shall, for the purposes of those paragraphs, be deemed to be an agreement for the sale on credit of those articles, implements, machinery, utensils or plant to the party to the agreement who is the buyer as defined in that law at a price equal to the purchase price fixed in the agreement.(2)Where there takes place a sale of property under a suspensive condition such sale shall, for the purposes of paragraphs 2, 3 and 4, be deemed to have effected a change of ownership of the property from the date of the sale.11. Expenditure on additions or alterations to articles implements, machinery or utensils not owned but used for trade
Where a taxpayer incurs any expenditure which is not allowed as a deduction in terms of paragraph (a) of subsection (2) of section fifteen on additions or alterations to articles, implements, machinery or utensils which are not owned by him but are used by him for the purposes of his trade, the provisions of paragraphs 2, 3, 4, 7 and 9 shall apply, mutatis mutandis, as though—(a)the articles, implements, machinery or utensils belonged to the taxpayer; and(b)the taxpayer had purchased the articles, implements, machinery or utensils at the time of the additions or alterations for an amount equal to the expenditure incurred by him on such additions or alterations.12. Cases in which no deductions to be made in terms of this Schedule
In no case shall any allowance be deductible in respect of any buildings, structures or works of a permanent nature other than such allowances as are deductible in terms of paragraphs 2, 3 and 4.13. Limitation on cost of farm dwelling
For the purposes of paragraphs 3 and 4, the cost of a farm improvement which ranked as a farm dwelling prior to the repeal of the definition thereof with effect from the year of assessment beginning on the 1st April, 1980, and any additions or alterations thereto shall be deemed to be so much of such costs as does not exceed the sum of fifteen thousand dollars.14. Limitation on cost of passenger motor vehicle
(1)In calculating, for the purpose of paragraphs 2, 3, 4, 7, 9 or 11, the cost of a passenger motor vehicle and any additions or alterations thereto, any amount in excess of—(a)twenty-two thousand dollars shall be disregarded, where the vehicle was purchased on or after the 1st April, 1986, but before the 31st March, 1991;(b)thirty thousand dollars shall be disregarded, where the vehicle was purchased on or after the 1st April 1991, but before the 1st April, 1992;(c)fifty thousand dollars shall be disregarded, where the vehicle was purchased on or after the 1st April, 1992, but before the 1st April, 1995;(d)seventy-five thousand dollars shall be disregarded, where the vehicle was purchased on or after the 1st April, 1995, but before the 1st January, 1999.(e)two hundred thousand dollars shall be disregarded, where the vehicle was purchased on or after the 1st January 1999, but before the 1st January, 2001.(f)three hundred thousand dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2001, but before the 1st January, 2002.(g)five hundred thousand dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2002.(h)one million dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2003 but before the 1st January, 2004.(i)ten million dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2004 but before the 1st January, 2005.(j)fifty million dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2005, but before the 1st January, 2006.(k)one billion dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2006, but before the 1st January, 2007.(l)ten million dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2007 but before the 1st January, 2009.(m)fifty per centum of the cost of acquisition of the vehicle, or one hundred billion dollars, whichever is the lesser amount, shall be disregarded, where the vehicle was purchased on or after the 1st January, 2008.(n)ten thousand United States dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2009.(2)For the purposes of subsection (1)—“passenger motor vehicle” means any motor vehicle propelled by mechanical or electrical power and intended or adapted for use or capable of being used on roads mainly for the conveyance of passengers, including an estate car, station wagon, van or similar vehicle but excluding any vehicle—(a)which is used wholly or almost wholly—(i)for the conveyance of passengers for gain; or(ii)by a person operating a hotel for the conveyance of guests; or(b)which has seating accommodation for fifteen or more passengers, excluding the driver of the vehicle; or(c)which was purchased by the taxpayer for the purpose of being leased to a particular person and has been so leased and where the taxpayer—(i)will not be entitled to the return of the vehicle at the expiry of the period of the lease; and(ii)has given or is required to give an option to purchase or other right in relation to the acquisition or disposal of the vehicle to the lessee or any other person;or15. Maximum amounts allowable in respect of schools, hospitals, nursing homes and clinics
(1)The following amounts shall be disregarded in calculating, for the purposes of paragraph 2, 3, 4, 6, 8 or 9, the total cost of any buildings which are used for the purposes of a school, hospital, nursing home or clinic and which rank as farm improvements, and any additions or alterations thereto—(a)in respect of any one building used wholly or mainly for the housing of staff employed at the school, hospital, nursing home or clinic, any amount in excess of—(i)fifteen thousand dollars incurred by the taxpayer, where the expenditure was incurred before the 1st April, 1991;(ii)thirty thousand dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st April, 1991, but before the 1st April, 1992;(iii)thirty-five thousand dollars incurred by the tax payer, where the expenditure was incurred on or after the 1st April, 1992, but before the 1st April, 1995;(iv)fifty thousand dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st April, 1995, but before the 1st January, 1999;(v)one hundred thousand dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st January, 1999, but before the 1st January, 2001.(vi)one hundred and fifty thousand dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st January, 2001 but before the 1st January, 2002;(vii)two hundred and fifty thousand dollars incurred by the taxpayer where the expenditure was incurred on or after the 1st January, 2002, but before the 1st January, 2003.(viii)one million dollars incurred by the taxpayer where the expenditure was incurred on or after the 1st January, 2003 but before the 1st January, 2004.(ix)fifteen million dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st January, 2004 but before the 1st January, 2005;(x)ten thousand United States dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st January, 2009;(b)in respect of any one such school, hospital, nursing home or clinic, any amount in excess of—(i)one hundred thousand dollars incurred by the taxpayer, where the expenditure was incurred before the 1st April, 1993;(ii)two hundred and fifty thousand dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st April, 1993, but before the 1st April, 1995.(iii)five hundred thousand dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st April, 1995 but before 1st January, 1999;(iv)one million five hundred thousand dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st January 1999, but before the 1st January, 2001.(v)two million two hundred and fifty thousand dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st January, 2001 but before the 1st January, 2002.(vi)three million five hundred thousand dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st January, 2002, but before the 1st January, 2003.(vii)ten million dollars incurred by the taxpayer where the expenditure was incurred on or after the 1st January, 2003, but before the 1st January, 2004.(viii)fifty million dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st January, 2004(ix)ten thousand United States dollars incurred by the taxpayer, where the expenditure was incurred on or after the 1st January, 2009;(2)With effect from the year of assessment beginning on the 1st January, 2005, the total cost to the taxpayer of any school, hospital, nursing home, or clinic shall be allowed in calculating for the purposes of paragraph 2, 3, 4, 6, 8 or 9 the total cost of any buildings which rank as farm improvements, and any additions or alterations thereto.(3)With effect from the year of assessment beginning on the 1st January, 2005, the total cost to the taxpayer of any one building used wholly or mainly for the housing of staff employed at a school, hospital, nursing home, or clinic shall be disregarded in calculating for the purposes of paragraph 2, 3, 4, 6, 8 or 9 the total cost of any buildings which are used for the purposes of a school, hospital, nursing home, or clinic and which rank as farm improvements, and any additions or alterations thereto.Fifth Schedule (Section 15(2)(f))
Allowances and deductions in respect of income from mining operations and other provisions relating thereto
1. Interpretation
(1)In this Schedule—“approved estimated life”, in relation to a mine, means the estimate of the life of the mine determined by a company for the purposes of subparagraph (a) of subparagraph (2) of paragraph 2 or, if the Commissioner does not accept the estimate of the life determined by the company, the estimate of the life of the mine determined by the Commissioner;“associated company” means a company which controls, is controlled by or is under common control with a taxpayer;“capital expenditure” means—(a)expenditure, in relation to mining operations (other than expenditure in respect of which a deduction is allowable in terms of subparagraph (ii) of paragraph (f) of subsection (2) of section fifteen)—(i)on buildings, works or equipment, including any premium or consideration in the nature of a premium paid for the use of buildings, works, equipment or land, but excluding—(A)in the case of a mine which is owned, tributed or leased by a company which is under the control of not more than four individuals, any expenditure in excess of—(I)fifteen thousand dollars on a building used mainly as a dwelling by one or more of the individuals who control the company, where the building was erected on or after the first day of the first year of assessment under this Act but before the 1st April, 1991; or(II)thirty thousand dollars on a building used mainly as a dwelling by one or more of the individuals who control the company, where the building was erected on or after the 1st April, 1991, but before the 1st April, 1992; or(III)thirty-five thousand dollars on a building used mainly as a dwelling by one or more of the individuals who control the company, where the building was erected on or after the 1st April, 1992, but before the 1st April, 1995; or(IV)fifty thousand dollars on a building used mainly as a dwelling by one or more of the individuals who control the company, where the building was erected on or after the 1st April, 1995;(V)one hundred thousand dollars on a building used mainly as a dwelling by one or more of the individuals who control the company, where the building was erected on or after the 1st January 1999, but before the 1st January, 2001;(VI)one hundred and fifty thousand dollars on a building used mainly as a dwelling by one or more of the individuals who control the company, where the building was erected on or after the 1st January, 2001, but before the 1st January, 2002; or(VII)two hundred and fifty thousand dollars on a building used mainly as a dwelling by one or more individuals who control the company, where the building was erected on or after the 1st January, 2002, but before the 1st January, 2003.or(VIII)one million dollars on a building used mainly as a dwelling by one or more individuals who control the company, where the building was erected on or after the 1st January, 2003.(IX)ten thousand United States dollars on a building used mainly as a dwelling by one or more individuals who control the company, where the building was erected on or after the 1st January, 2009;(B)in the case of a passenger motor vehicle as defined in subparagraph (2) of paragraph 14 of the Fourth Schedule, any expenditure in excess of—(I)twenty-two thousand dollars, where such motor vehicle was purchased on or after the 1st April, 1986 but before the 1st April, 1991; or(II)thirty thousand dollars, where such motor vehicle was purchased on or after the 1st April, 1991, but before the 1st April, 1992; or(III)fifty thousand dollars, where such motor vehicle was purchased on or after the 1st April, 1992; but before the 1st April, 1995; or(IV)seventy-five thousand dollars, where such motor vehicle was purchased on or after the 1st April, 1995, but before the 1st January 1999; or(V)two hundred thousand dollars shall be disregarded, where the vehicle was purchased on or after the 1st January 1999, but before the 1st January, 2001; or(VI)three hundred dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2001, but before the 1st January, 2002; or(VII)five hundred thousand dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2002, but before the 1st January, 2003.(VIII)one million dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2003 but before the 1st January, 2007; or(IX)ten million dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2007.(X)ten thousand United States dollars shall be disregarded, where the vehicle was purchased on or after the 1st January, 2009;(iii)incurred prior to the commencement of production or during any period of nonproduction on preliminary surveys, bore-holes, development, general administration and management, including any interest payable on loans utilized for mining purposes;(b)expenditure incurred on or after the 1st April, 1988, on any permanent building used for the purposes of—(ii)a hospital, nursing home or clinic;in connection with the taxpayer’s mining operations, to the extent that the expenditure does not exceed—(A)in respect of any building used mainly as a dwelling by staff employed at the school, hospital, nursing home or clinic—(I)fifteen thousand dollars, where the expenditure was incurred before the 1st April, 1991; or(II)thirty thousand dollars, where the expenditure was incurred on or after the 1st April, 1991, but before the 1st April, 1992; or(III)thirty-five thousand dollars, where the expenditure was incurred on or after the 1st April, 1992, but before the 1st April, 1995; or(IV)fifty thousand dollars, where the expenditure was incurred on or after the 1st April, 1995, but before the 1st January 1999 ; or(V)one hundred thousand dollars where the expenditure was incurred on or after 1st January 1999, but before the 1st January, 2001; or(VI)one hundred and fifty thousand dollars, where the expenditure was incurred on or the 1st January, 2001, but before the 1st January, 2002; or(VII)two hundred and fifty thousand dollars, where the expenditure was incurred on or after the 1st January, 2002, but before the 1st January, 2003 ; or(VIII)one million dollars, where the expenditure was incurred on or after the 1st January, 2003.(IX)fifty thousand United States dollars, where the expenditure was incurred on or after the 1st January, 2009;(B)in respect of any one such school, hospital, nursing home or clinic—(I)one hundred thousand dollars, where the expenditure was incurred before the 1st April, 1993; or(II)two hundred and fifty thousand dollars, where the expenditure was incurred on or after the 1st April, 1993, but before the 1st April, 1995; or(III)five hundred thousand dollars, where the expenditure was incurred on or after the 1st April, 1995, but before the 1st January 1999; or(IV)one million five hundred thousand dollars where the expenditure was incurred on or after the 1st January 1999, but before the 1st January, 2001; or(V)two million two hundred and fifty thousand dollars, where the expenditure was incurred on or the 1st January, 2001, but before the 1st January, 2002; or(VI)three million five hundred thousand dollars, where the expenditure was incurred on or after the 1st January, 2002, but before the 1st January, 2003; or(VII)ten million dollars, where the expenditure was incurred on or after the 1st January, 2003.(VIII)fifty thousand United States dollars, where the expenditure was incurred on or after the 1st January, 2009;“estimate of the life of the mine” means the number of years not exceeding—(a)in the case of a mine operated for the purpose of producing lead or zinc or lead and zinc, ten years;(b)in the case of a mine operated for the purpose of producing iron, five years;(c)in the case of any other mine, twenty years;during which mining operations at the mine may be expected to continue after the beginning of the year of assessment;“expenditure” means net expenditure after taking into account any refund of, or returns from, expenditure;“expenditure on equipment” includes expenditure on renewals or replacements of buildings, works or equipment unless such expenditure has been allowed as a deduction in terms of paragraph 6; “expenditure on shaft sinking” includes the expenditure on sumps, pump chambers, stations and ore bins accessory to a shaft;“trade training” means any education or training, other than any education or training which is provided as part of the general school education of a pupil, which is intended to train persons to perform work in connection with the mining operations of the taxpayer or an associated company or to improve their performance of such work;“training building” means any building the construction of which was commenced on or after the 1st April, 1983, which is erected by the taxpayer and used exclusively for the purpose of providing trade training for persons who are or will be employed by him or an associated company in connection with the taxpayer’s mining operations or those of the associated company;“training equipment” means new or unused articles, implements, machinery or utensils purchased on or after the 1st April, 1983, and, in the opinion of the Commissioner, used by the taxpayer exclusively for the purpose of providing trade training for persons who are or will be employed by him or an associated company in connection with the taxpayer’s mining operations or those of the associated company.(2)For the purpose of determining whether the training equipment was used or is being used exclusively by the taxpayer for the purpose of providing trade training for persons who are or will be employed by him or an associated company in connection with the taxpayer’s mining operations or those of the associated company, the Commissioner may have regard to the use to which the equipment was or is being put by the taxpayer in the year of assessment in which it was first put into use in the next following year of assessment.(3)For the purposes of this Schedule, a building shall not be deemed to be used for the purposes of—(b)a hospital, nursing home or clinic;in connection with a taxpayer’s mining operations, unless it is proved to the satisfaction of the Commissioner that, at the relevant time—(i)in the case of a school, more than one-half of the pupils are children of persons employed by the taxpayer in carrying on mining operations;(ii)in the case of a hospital, nursing home or clinic, more than one-half of the persons receiving treatment thereat are employed by the taxpayer in carrying on mining operations or are members of the families of persons who are so employed.2. Calculation of redemption allowance and unredeemed balance of capital expenditure in the case of mine-owning companies
(1)Subject to paragraph 4, there shall be deducted in the year of assessment in respect of income derived by a company from the carrying on of mining operations in a mine of which such company is the owner, an allowance for the redemption of capital expenditure ascertained as follows—(a)the balance of unredeemed capital expenditure in respect of that mine at the commencement of the year of assessment, after subtracting therefrom any recoupments from capital expenditure during such year, shall be added to the amount of capital expenditure incurred on that mine during such year;(b)the aggregate amount of the sums so added shall be divided by the number of years in the approved estimated life of the mine;(c)the quotient resulting from the division shall be the amount to be deducted as aforesaid.(2)(a)The company shall furnish annually to the Commissioner a statement giving an estimate of the life of the mine based on the certified estimates of ore reserves, supported by calculations showing how the estimate is arrived at.(b)The annual revision shall not affect any assessment determined or any allowance made or presumed to have been made under this Act or under any previous law.(3)When separate and distinct mining operations are carried on in mines that are not contiguous, the allowance for redemption of capital expenditure shall be computed separately according to the approved estimated life of each such mine.(4)The balance of capital expenditure unredeemed at the commencement of the first year of assessment chargeable under this Act shall be the balance determined at the end of the immediately preceding year of assessment in terms of the previous law.3. Calculation of redemption allowance in the case of persons other than mine-owning companies
(1)Subject to paragraph 4, there shall be deducted for each year of assessment in respect of income derived by—(a)a company from the carrying on of mining operations in a mine of which such company is not the owner; or(b)any person other than a company from the carrying on of mining operations;an allowance for the redemption of capital expenditure in such sum as the Commissioner considers to be fair and reasonable:Provided that where any person referred to in subparagraph (b) who is the owner of a mine furnishes, for any year of assessment, an estimate of the life of the mine, then the amount to be deducted shall be calculated for such year as if paragraph 2 applied to such person.(2)The balance of capital expenditure unredeemed at the commencement of the first year of assessment chargeable under this Act shall be the balance determined at the end of the immediately preceding year of assessment in terms of the previous law.4. Further provisions in regard to capital redemption, allowance
(1)Notwithstanding paragraphs 2 and 3, where any person, at the 1st of April, 1967, carried on mining operations in a mine and had, under any previous law, made an election relating to the deduction of current capital expenditure incurred during any year of assessment, the allowance for redemption of capital expenditure shall continue to be calculated in accordance with the terms of the previous law relating to such election.(2)Notwithstanding paragraphs 2 and 3, any person who carries on mining operations in a mine may elect that the amount to be deducted for each year of assessment in respect of the allowance for the redemption of capital expenditure shall be the aggregate of the amount of capital expenditure incurred by him during such year of assessment in respect of that mine and a proportion of any balance of unredeemed capital expenditure in respect of that mine at the commencement of such year determined as provided in subparagraph (3).(3)The proportion of any balance of unredeemed capital expenditure referred to in subparagraph (2) shall—(a)be determined by dividing the amount of the balance of such unredeemed capital expenditure by the life of the mine concerned, where the person who makes the election in terms of subparagraph (2) is the owner of the mine concerned and—(i)complies with subparagraph (2) of paragraph 2; or(ii)furnishes an estimate of the life of the mine in terms of the proviso to subparagraph (1) of paragraph 3;(b)be fixed by the Commissioner at such sum as may seem to him to be fair and reasonable, in any case not referred to in subparagraph (a).(4)Notwithstanding subparagraph (2), a person carrying on mining operations in a new mine, as defined in subparagraph (8), may elect that the amount to be deducted in the year of assessment in which production on the new mine first commences shall be the aggregate of the amount of capital expenditure incurred by him during such year of assessment in respect of the mine and the balance of the unredeemed capital expenditure in respect of the mine at the commencement of such year of assessment.(5)Any election made in terms of subparagraph (2) shall be binding in respect of all subsequent years of assessment.(6)Where an election is made under subparagraph (2), recoupments from capital expenditure during the year of assessment shall be deducted from the unredeemed balance of capital expenditure at the commencement of such year and, if there is no such unredeemed balance, then from the capital expenditure incurred during such year.(7)The balance of capital expenditure unredeemed at the commencement of the first year of assessment chargeable under this Act shall be the balance determined at the end of the immediately preceding year of assessment in terms of the previous law.(8)For the purpose of subparagraph (4)—“new mine” means any mining undertaking which, in the opinion of the Commissioner, is an independent workable proposition, whether or not it is operated by a person already carrying on mining operations, and which—(a)first commenced regular production on or after the 1st April, 1968; or(b)having previously been in production—(i)had been closed down and has subsequently been reopened; or(ii)had changed ownership and has been reorganized with substantially new development and new plant;and commenced regular production on or after the 1st April, 1968.5. Allowance for capital expenditure incurred on non-contiguous mine
6. Deduction of expenditure incurred on renewal or replacement of buildings, works or equipment
If the taxpayer so elects (which election shall be binding) in respect of income from mining operations, he shall be allowed a deduction of expenditure in relation to those operations, incurred during the year of assessment on any single renewal or replacement of buildings, works or equipment which, together with the accessories thereto, does not exceed in cost ten thousand United States dollars:Provided that in the case of a mine which is owned, tributed or leased by a company under the control of not more than four individuals, no expenditure in excess of one thousand five hundred United States dollars on the renewal or replacement of any building shall be allowed as a deduction if such building is used mainly by any such individual or individuals as a dwelling.7. Deduction for training investment allowance
8. Computation of unredeemed balance of capital expenditure on change of ownership of a mine
(1)Whenever there takes place a change of ownership of a mine, the transferor and the transferee of the mine shall jointly furnish to the Commissioner a statement in writing as to the proportion of the consideration, where consideration is given, or of the value, where no consideration is given, as appertains to such assets the cost of which would rank as capital expenditure.(2)If the Commissioner is satisfied with such statement, he shall allow the amount so declared to rank as capital expenditure for redemption to the transferee of the mine and such amount shall be deemed to be a recoupment from capital expenditure in the hands of the transferor.(3)If the Commissioner is not satisfied with the statement furnished by the transferor and transferee, or if no statement has been furnished, the Commissioner may determine the proportion of the consideration given, or of the value where no consideration is given, which shall rank as capital expenditure for redemption in the hands of the transferee. The proportion of the consideration or of the value where no consideration is given so determined shall be deemed to be a recoupment from capital expenditure in the hands of the transferor.(4)Notwithstanding subparagraphs (1), (2) and (3), where the ownership of a mine is transferred for no valuable consideration from a transferor who has deducted capital expenditure in respect of such mine under subparagraph (1) or (2) of paragraph 4 or the corresponding provisions of any previous law, the amount of capital expenditure to be allowed to rank for redemption in the hands of the transferee shall not exceed the amount of capital expenditure ranking for redemption in the hands of the transferor at the time the transfer is made and such amount shall be deemed to be a recoupment from capital expenditure in the hands of the transferor.(5)If the ownership of a mine is transferred in the circumstances described in paragraphs (a), (b) and (c) of proviso (iii) to subsection (3) of section fifteen from one company, with or without an assessed loss, to another company, the amount of capital expenditure to be allowed to rank for redemption in the hands of the transferee shall, notwithstanding subparagraphs (1), (2) and (3), be the amount of the capital expenditure ranking for redemption in the hands of the transferor at the time transfer is made which shall be deemed to be a recoupment from capital expenditure in the hands of the transferor.(6)If a company, in the course of or furtherance of a scheme of reconstruction of a group of companies or a merger or other business operation which, in the opinion of the Commissioner, is of a similar nature, transfers ownership of a mine to another company, the transferor and transferee may elect, notwithstanding the terms of any agreement of sale or the provisions of subparagraphs (1), (2) and (3), that the amount of capital expenditure ranking for redemption in the hands of the transferor at the time transfer is made shall rank as capital expenditure for redemption in the hands of the transferee and be deemed to be a recoupment from capital expenditure in the hands of the transferor.(7)If the ownership of a mine is transferred between spouses, the transferor and the transferee may elect, notwithstanding the terms of any agreement of sale or the provisions of subparagraphs (1), (2) and (3), that the amount of capital expenditure ranking for redemption in the hands of the transferor at the time transfer is made shall rank as capital expenditure for redemption in the hands of the transferee and be deemed to be a recoupment from capital expenditure in the hands of the transferor.10. Deduction not admissible in respect of income derived from carrying on of mining operations
No deduction shall, as regards income derived from the carrying on of mining operations, be made in respect of the allowances or deductions referred to in paragraphs (c), (d), (e) and (t) of subsection (2) of section fifteen.Sixth Schedule (Section 15(2)(h))
Deductions in respect of contributions to benefit and pension funds and the consolidated revenue fund
Part I – Preliminary
1. Interpretation of terms
In this Schedule—“amended pensions law”, in relation to an officer, means a pensions law of Zimbabwe in force before the 1st July, 1960, the provisions of which have been amended or re-enacted on or after that date to provide for an increase in the ordinary contributions to be made to the Consolidated Revenue Fund by the officer or the State or the officer and the State with the object of increasing the amount of the pension payable to the officer and “unamended”, when used in relation to a pensions law, and “unamended or reenacted”, when used in relation to the provisions of a pensions law, shall be construed accordingly; “annual emoluments”, in relation to a member of a benefit or pension fund, other than a retirement annuity fund, or an officer, means—(a)so much of the emoluments of the member or officer in the year of assessment as are emoluments for the purposes of calculating the amount of ordinary contributions to the fund or the Consolidated Revenue Fund, as the case may be; or(b)such sum, exceeding the amount of his emoluments referred to in paragraph (a), as the Commissioner may, in the case of the member or officer, fix; or(c)where the member is a member of a partnership, the taxable income of the member from the partnership;“employer”, in relation to a member of a benefit or pension fund who is a member of a partnership, means the partnership;“fund with changed rules”, in relation to a member of a pension fund, means a pension fund, other than a retirement annuity fund, established before the 1st July, 1960, the rules of which have been changed on or after that date to provide for an increase in the ordinary contributions to be made by the member or the employer of the member or the member and the employer of the member with the object of increasing the amount of the pension or other benefit payable to the member and “unchanged”, when used in relation to the rules of the pension fund, shall be construed according;“lump sum contribution to a pension fund by an employer” means a contribution (other than an ordinary contribution) by an employer to a pension fund which, in the opinion of the Commissioner, is made for the purpose of ensuring that the moneys in the fund are sufficient to meet all payments to be made in terms of the rules of the fund;“new fund” means a pension fund, other than a retirement annuity fund, established on or after the 1st July, 1960, but does not include any pension fund established by a statutory corporation which is a successor corporation to a statutory corporation which has been dislodged in pursuance of the dissolution of the former Federation and which had established a fund before 1st July, 1960;“officer” means a person to whom the provisions of a pensions law of Zimbabwe apply; “ordinary contribution”, in relation to—(a)a member of a pension fund or an officer, means a contribution to the fund or the Consolidated Revenue Fund, as the case may be, which—(i)is not an arrear contribution; and(ii)is made by or in connection with the member or the officer, as the case may be; and(iii)is not refundable to the contributor; and(iv)is required to be made at intervals fixed by the rules of the fund or at a rate and at intervals fixed by a pensions law of Zimbabwe, as the case may be; and(v)is calculated on annual emoluments of a contributor which are included in his gross income;(b)a member of a benefit fund, means a contribution to the fund which—(i)is not an arrear contribution; and(ii)is made by or in connection with the member;“pensions law of Zimbabwe” means a law of Zimbabwe, the provisions of which require a person in the service of the State to contribute to the Consolidated Revenue Fund for the purpose of securing a pension for himself, his widow or children;Part II – Amounts allowable as deductions in respect of ordinary contributions by employers of members of one benefit fund
2. Application of Part II
This Part shall, subject to subparagraph (1) of paragraph 5, not apply to ordinary contributions to a benefit fund by an employer of a member of the fund in connection with whom the employer makes ordinary contributions to some other benefit fund.3. Employers of members of benefit funds who became members before the 1st April, 1958
The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment by an employer of a member of a benefit fund who became a member of the fund before the 1st April, 1958, shall be an amount equal to the amount of those contributions.4. Employers of members of benefit funds who became members on or after the 1st April, 1958
The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment by an employer of a member of a benefit fund who became a member of the fund on or after the 1st April, 1958, shall be an amount equal to—(a)the amount of those contributions; or(b)one thousand five hundred United States dollars;whichever is the lesser amount.Part III – Amounts allowable as deductions in respect of ordinary contributions by employers of members of two or more benefit funds
5.
(1)For the purposes of this paragraph, ordinary contributions to two or more benefit funds by an employer of a member of the fund who became a member of the funds on or after 1st April, 1958, shall be deemed to be ordinary contributors to one and the same fund.(2)The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment by an employer of a member of a benefit fund in relation to whom the employer makes ordinary contributions to some other benefit fund shall be an amount equal to the sum of the amounts which, in terms of Part II, would, but for paragraph 2, have been allowable to the employer as a deduction in respect of his ordinary contributions to each of those funds.Part IV – Amounts allowable as deductions in respect of lump sum contributions to pension funds by employers
6.
Any lump sum contribution to a pension fund by an employer shall be allowed as a deduction:Provided that—(i)the Commissioner may direct that the lump sum contribution shall be treated as an expense to be spread over such period of years as the Commissioner may determine;(ii)where the Commissioner has, in terms of any previous law, directed that a lump sum or similar contribution shall be so treated, any balance of the contribution which has not been allowed as a deduction shall be carried forward and allowed as a deduction in terms of this paragraph.Part V – Amounts allowable as deductions in respect of ordinary contributions by employers of members of one pension fund
7. Application of Part V
This Part shall, subject to subparagraph (1) of paragraph 11, not apply to ordinary contributions to a pension fund by an employer of a member of the fund in connection with whom the employer makes ordinary contributions to some other pension fund.8. Employers of members of funds with unchanged rules who became members before the 1st July, 1960
The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment by an employer of a member of a fund with unchanged rules who became a member of the fund before the 1st July, 1960, shall be an amount equal to the amount of those ordinary contributions.9. Employers of members of funds with changed rules who became members before the 1st July, 1960
The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment by an employer of a member of a fund with changed rules who became a member of the fund before the 1st July, 1960, shall—(a)if the amount of those contributions exceeds—(i)the amount of the ordinary contributions which would have been allowed as a deduction in the year of assessment had the rules of the fund remained unchanged; or(ii)the amount of the ordinary contributions which would have been allowed as a deduction in the year of assessment had the member become a member of the fund on or after the 1st July, 1960;be an amount equal to so much of those contributions as does no exceed the greater of the amounts referred to in subparagraphs (i) and (ii); and(b)if the amount of those contributions does not exceed one or other of the amounts referred to in subparagraphs (i) and (ii) of subparagraph (a), be an amount equal to the amount of those contributions.10. Employers of members of new funds and members of funds with changed or unchanged rules who became members on or after the 1st July, 1960
The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment by an employer of a member of a new fund or a member of a fund with changed or unchanged rules who became a member of the fund on or after the 1st July, 1960, shall be an amount equal to—(a)the amount of those contributions; or(b)five thousand four hundred United States dollars;whichever is the lesser amount.Part VI – Amounts allowable as deductions in respect of ordinary contributions by employers of members of two or more pension funds
11.
(1)For the purposes of this paragraph, ordinary contributions to two or more new funds by an employer of a member of the funds shall be determined to be ordinary contributions to one and the same fund.(2)The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment by an employer of a member of a pension fund in relation to whom the employer makes ordinary contributions to some other pension fund shall be an amount equal to the sum of the amounts which, in terms of Part V, would, but for paragraph 7, have been allowable to the employer as a deduction in respect of his ordinary contributions to each of those funds.Part VII – Amounts allowable as deductions in respect of ordinary contributions to one pension fund or consolidated revenue fund by members and officials who are unmarried or whose spouses are not members of pension funds or officers
12. Application for Part VII
The provisions of this Part shall not apply to ordinary contributions by—(a)a member of a pension fund who is also a member of some other pension fund; or(b)an officer who is also a member of a pension fund.13. Members of funds with unchanged rules who became members before the 1st July, 1960: Officers to whom an unamended pensions law applied before the 1st July, 1960
The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment to a fund with unchanged rules by a member of the fund who became a member of the fund before the 1st July, 1960, or to the Consolidated Revenue Fund by an officer to whom an unamended pensions law of Zimbabwe applied before the 1st July, 1960, shall be an amount equal to the amount of those contributions.14. Members of funds with changed rules who became members before the 1st July, 1960: Officers to whom an amended pensions law applied before the 1st July, 1960
The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment to a fund with changed rules by a member of the fund who became a member of the fund before the 1st July, 1960, or to the Consolidated Revenue Fund by an officer to whom an amended pensions law of Zimbabwe applied before the 1st July, 1960, shall be—(a)if the amount in respect of ordinary contributions which would have been allowed as a deduction had the rules of the fund remained unchanged or the provisions of the amended pensions law not been amended or re-enacted, as the case may be, exceeds five thousand four hundred United States dollars, be an amount equal to the amount in respect of ordinary contributions which would have been so allowed as a deduction;(b)if the amount in respect of ordinary contributions which would have been allowed as a deduction had the rules of the fund remained unchanged or the amended pensions law not been amended or re-enacted, as the case may be, does not exceed five thousand four hundred United States dollars, be an amount equal to so much of his ordinary contributions as does not exceed one million four hundred and forty thousand dollars.15. Members of new funds: Members of funds with changed or unchanged rules who became members on or after the 1st July, 1960: Officers to whom a pensions law did not apply before the 1st July, 1960
The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment to a new fund by a member of the fund or to a fund with changed or unchanged rules by a member of the fund who became a member of the fund on or after 1st July, 1960, or to the Consolidated Revenue Fund by an officer to whom a pensions law of Zimbabwe did not apply before the 1st July, 1960, shall be an amount equal to—(a)so much of those contributions as do not exceed seven comma five per centum of the member’s annual emoluments; or(b)five thousand four hundred United States dollars, whichever is the lesser amount.16. Members of retirement annuity funds
The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment to a retirement annuity fund by a member of the fund shall be an amount equal to—(a)so much of those contributions as do not exceed seven comma five per centum of the member’s annual emoluments; or(b)five thousand four hundred United States dollars, whichever is the lesser amount.Part VIII – Amounts allowable as deductions in respect of ordinary contributions to two or more pension funds or one or more pension funds and consolidated revenue fund by members and officers who are unmarried or whose spouses are not members of pension funds or officers
17. Members of two or more pension funds who became members of the funds or one or more of the funds before the 1st July, 1960, and who are unmarried or whose spouses are not members of pension funds or officers: Officers who are members of one or more pension funds who became officers or members of the fund or funds before the 1st July, 1960, and who are unmarried or whose spouses are not members of pension funds
(1)For the purposes of this paragraph, the Consolidated Revenue Fund to which ordinary contributions are made shall be deemed to be a pension fund of which—(a)an officer to whom a pensions law of Zimbabwe applied before the 1st July, 1960, shall be deemed to have become a member before the 1st July, 1960; and(b)an officer to whom a pensions law of Zimbabwe did not apply before the 1st July, 1960, shall be deemed to have become a member on or after the 1st July, 1960.(2)The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment by a member of two or more pension funds who became a member of the funds or one or more of the funds before the 1st July, 1960, shall—(a)if the sum of the amounts or the amount which, in terms of paragraphs 13 and 14 or, as the case may be, paragraph 13 or 14, would, but for paragraph 12, have been allowable as a deduction in respect of ordinary contributions to the funds or fund, of which became a member before the 1st July, 1960, exceeds five thousand four hundred United States dollars, be an amount equal to the sum of the amounts or the amount referred to in this subparagraph;(b)if the sum of the amounts or the amount referred to in subparagraph (a) does not exceed five thousand four hundred United States dollars,(i)the sum of the amounts or the amount referred to in subparagraph (a); and(ii)so much of the sum of the amounts, if any, or the amount, if any, which, in terms of paragraphs 15 and 16 or, as the case may be, paragraph 15 or 16, would, but for paragraph 12, have been allowable as a deduction in respect of ordinary contributions to the funds or fund of which he became a member on or after the 1st July, 1960, as does not exceed the difference between—(A)two thousand seven hundred United States dollars; and(B)three thousand six hundred United States dollars:Provided that if all the pension funds of which he is a member are retirement annuity funds, the amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment shall be an amount equal to—(a)the sum of the amounts of those contributions; or(b)five thousand four hundred United States dollars;whichever is the lesser amount.18. Members of two or more pension funds who did not become members of the funds before the 1st July, 1960, and who are unmarried or whose spouses are not members of pension funds or officers: Officers who are members of one or more pension funds who did not become officers or members of the fund or funds before the 1st July, 1960, and who are unmarried or whose spouses are not members of pension funds
(1)For the purposes of this paragraph, the Consolidated Revenue Fund to which ordinary contributions are made shall be deemed to be a pension fund of which an officer to whom a pensions law of Zimbabwe did not apply before the 1st July, 1960, shall be deemed to have become a member on or after the 1st July, 1960.(2)The amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment by a member of two or more pension funds who became a member of the funds on or after the 1st July, 1960, shall be an amount equal to so much as does not exceed five thousand four hundred United States dollars of the sum of the amounts which, in terms of paragraphs 15 and 16 or, as the case may be, paragraph 15 or 16 would, but for the provisions of paragraph 12, have been allowable as a deduction in respect of his ordinary contributions to the funds:Provided that if all the pension funds of which he is a member are retirement annuity funds, the amount to be allowed as a deduction in respect of ordinary contributions in the year of assessment shall be an amount equal to—(a)the sum of the amounts of those contributions; or(b)two thousand seven hundred United States dollars;whichever is the lesser amount.Part IX – Change of membership of a pension fund as a result of dissolution of former federation
19.
For the purposes of Parts VII, VIII and IX of this Schedule, any person who before the 1st July, 1960, was a member of the pension fund of the Government of the former Federation and who as a result of the dissolution of the former Federation is required to contribute to the Consolidated Revenue Fund, or any person who before the 1st July, 1960, was a member of the pension fund of a statutory corporation and who as a result of the dissolution of the former Federation has become a member of the pension fund of a successor corporation, shall be deemed to have commenced contributions to the Consolidated Revenue Fund or to the pension fund of the successor corporation, as the case may be, before the 1st July, 1960.Seventh Schedule (Section 15(2)(z))
Deductions in respect of income derived from farming operations and other provisions relating thereto
1. Interpretation
In this Schedule—“drought-stricken area” means any area of Zimbabwe which is seriously affected by drought and which the Minister declares in a statutory instrument shall be treated as a drought-stricken area for the purposes of this Schedule;“epidemic area” means any area of Zimbabwe which is affected by an epidemic disease of livestock and which the Minister declares in a statutory instrument shall be treated as an epidemic area for the purposes of this Schedule;“expenditure incurred”, in relation to the cost of any work done by any other person for which a farmer has become liable in terms of the Natural Resources Act , means the amounts actually paid by him during the year of assessment in respect of such costs;“fencing” means—(a)fencing erected by the taxpayer and used in the carrying on of farming operations; and(b)fencing erected by any other person for part of the cost of which a farmer has become liable in terms of the Fencing Act , and which is used in the carrying on of farming operations;“grazer” means any livestock which a farmer, in terms of a contract with the owner of the livestock, has in his possession and for which he has assumed responsibility for the grazing and management thereof; “livestock” includes cattle, sheep, goats, pigs, crocodiles, ostriches, fowls and any other animals or birds that are raised or possessed by a farmer as livestock in the course of his farming operations;“period”, in relation to—(a)a drought, means the period specified by the Minister in the statutory instrument referred to in the definition of “drought-stricken area”; or(b)an epidemic disease of livestock, means the period specified by the Minister in the statutory instrument referred to in the definition of “epidemic area”;as the period during which the area concerned shall be treated as a drought-stricken area or an epidemic area, as the case may be, for the purposes of this Schedule;“water conservation work” means any reservoir, weir, dam or embankment constructed for the impounding of water.2. Special deductions applicable to farmers
Notwithstanding anything contained in this Act, a farmer shall be entitled to deduct any expenditure incurred by him during the year of assessment on—(a)the stumping and clearing of lands;(b)works for the prevention of soil erosion;(c)the sinking of boreholes and wells;(d)aerial and geophysical surveys;(e)any water conservation work and any amounts paid by him towards the cost of any water conservation work done by any other person for which such farmer has become liable in terms of the Natural Resources Act ;3. Determination of taxable income or assessed loss from growing of timber
(1)Any farmer who grows timber for the purpose of deriving income therefrom may elect that the following rules shall apply in the determination of the taxable income or the assessed loss, as the case may be, in respect of such operation—(a)the cost of planting the timber shall be carried forward until such time as the timber has reached maturity;(b)to the cost of planting mentioned in subparagraph (a) there shall be added annually until the timber has reached maturity an amount (hereinafter called the fixed percentage) equal to five per centum of such cost;(c)whenever timber which has been grown by such farmer is sold, there shall be deducted from the proceeds of such sale a proportionate part of the sum of the cost of planting and the total of the fixed percentage added annually, and the remaining amount shall be included in the taxable income or the assessed loss, as the case may be, of such farmer;(d)there shall be added to the taxable income or deduction from the assessed loss, as the case may be, of such farmer in each year of assessment the amount of the annual fixed percentage determined under subparagraph (b);(e)there shall be deducted from the taxable income or added to the assessed loss, as the case may be, of such farmer all expenditure (including deductions made under paragraphs (c), (d) and (e) of subsection (2) of section fifteen) incurred on the maintenance and upkeep of such timber;(f)any election made in terms of this paragraph shall be binding in respect of all subsequent years of assessment and may be made only in respect of timber planted after the 1st April, 1950:Provided that an election made in terms of the similar provisions of a previous law shall be deemed to have been made in terms of this Act.(2)For the purposes of the first year of assessment under this Act, the opening value of any timber to which this paragraph applies shall be deemed to be the closing value in the last year of assessment under the previous law.4. Determination of taxable income or assessed loss from orchards or vineyards
(1)Any farmer who is engaged in fruit-growing or viticulture for the purpose of deriving income therefrom may elect that the following rules shall apply in the determination of the taxable income or the assessed loss, as the case may be, in respect of such operations—(a)expenditure incurred in connection with orchards or vineyards such as is referred to in paragraph 2 and any allowance in respect of orchards or vineyards which are deductible in terms of paragraph (c) of subsection (2) of section fifteen shall be deducted from the taxable income or added to the assessed loss, as the case may be, of such farmer;(b)all other expenditure or allowances deductible in terms of subsection (2) of section fifteen and expenditure incurred in the planting and upkeep of orchards and vineyards shall be carried forward until such time as they become productive;(c)the farmer shall submit to the Commissioner in the year of assessment in which an orchard or vineyard becomes productive an estimate of the number of years during which the orchard or vineyard may be expected to remain productive and the Commissioner may either accept that estimate or himself determine the number of years during which the orchard or vineyard may be expected to remain productive;(d)after an orchard or vineyard becomes productive the total amount of expenditure carried forward in terms of subparagraph (b) shall be divided by the number of years accepted or, as the case may be, determined by the Commissioner in terms of years accepted or, as the case may be, determined by the Commissioner in terms of subparagraph (c) and a sum equal to the amount resulting shall be deducted in equal annual instalments from the taxable income or added to the assessed loss, as the case may be, until the total amount of the expenditure carried forward in terms of subparagraph (b) has been allowed as a deduction;(e)no deduction from taxable income or addition to an assessed loss shall be made after the farmer has, in the opinion of the Commissioner, ceased to keep up an orchard or vineyard in respect of which expenditure carried forward in terms of subparagraph (b) was incurred;(f)if part of an orchard or vineyard is uprooted and replanted, whether before or after the orchard or vineyard has become productive—(i)the amount of the balance of expenditure in respect of that part of the orchard or vineyard carried forward in terms of subparagraph (b), which is still to be deducted or added in terms of subparagraph (d), may be deducted or added in the year of assessment in which the uprooting takes place; and(ii)the part so uprooted and replanted shall be treated as a new orchard or vineyard for the purposes of the provisions of this paragraph relating to expenditure incurred in the planting and upkeep of orchards and vineyards;(g)if—(i)the ownership of an orchard or vineyard is transferred for valuable consideration; and(ii)the transferor has elected that this paragraph shall apply;the transferor and transferee shall jointly submit to the Commissioner a statement in writing showing the amount of the consideration and the proportion of that amount which is attributable to the cost of planting and upkeep referred to in subparagraph (b);(h)if no statement is submitted in terms of subparagraph (g) or if the Commissioner is not satisfied with a statement submitted in terms of that subparagraph, the Commissioner may determine the proportion of the consideration for the transfer of an orchard or vineyard which is attributable to the cost of planting and upkeep referred to in subparagraph (b);(i)the amount by which the proportion of the consideration for the transfer of an orchard or vineyard shown in a statement referred to in subparagraph (g) or, as the case may be, determined in terms of subparagraph (h) exceeds the amount of the balance of expenditure carried forward in terms of subparagraph (b) which is still to be deducted or added in terms of subparagraph (d) shall, subject to subparagraph (j)—(i)be deemed to be a recoupment in the hands of the transferor; and(ii)be added to the taxable income or, as the case may be, deducted from the assessed loss of the transferor;(j)the amount to be deducted from the assessed loss or added to the taxable income of a transferor in terms of subparagraph (i) shall not exceed the total amount of the sums deducted or added in terms of subparagraph (d);(k)an election made by a farmer in terms of his paragraph shall be irrevocable:Provided that an election made in terms of the similar provisions of a previous law shall be deemed to have been made in terms of this Act.(2)Subparagraph (1) shall not apply to orchards or vineyards established before the 1st April, 1956.5. Assessment of income when drought conditions or epidemic disease enforce sales of livestock
(1)If a farmer who raises or possesses livestock in a drought-stricken area or an epidemic area is driven by stress of the drought conditions or the epidemic disease, as the case may be, to dispose of his livestock during the period of the drought or the epidemic disease, he may elect to allocate the taxable income derived from the disposal of the livestock equally between the year of assessment in which he disposes of the livestock and each of the next two following years of assessment, and if he so elects he shall be assessed to tax accordingly:Provided that if, in the year of assessment in which he so disposes of the livestock, his taxable income derived from the disposal exceeds his total taxable income determined in accordance with this Act before the provisions of this paragraph are applied, he may elect that his total taxable income, determined in accordance with this Act before the provisions of this paragraph are applied, shall be allocated equally between that year of assessment and each of the next two following years of assessment, and if he so elects he shall be assessed to tax accordingly.(2)An election made in terms of subparagraph (1) shall be irrevocable.(3)For the purposes of subparagraph (1), where a farmer returns grazers to their owner, he shall be deemed to have disposed of them.5A. Assessment of income when compulsory acquisition of farm necessitates sale of livestock.
(1)If it becomes necessary for a farmer to dispose of his livestock because any farm or part of a farm belonging to the farmer has been compulsorily acquired for resettlement purposes in terms of the Land Acquisition Act , he may elect to allocate the taxable income derived from the disposal of the livestock equally between the year of assessment in which he disposes of the livestock and each of the next two following years of assessment, and if he so elects he shall be assessed to tax accordingly:Provided that if, in the year of assessment in which he so disposes of the livestock, his taxable income derived from the disposal exceeds his total taxable income determined in accordance with this Act before the provisions of this paragraph are applied, he may elect that his total taxable income, determined in accordance with this Act before the provisions of this paragraph are applied, shall be allocated equally between that year of assessment and each on the next two following years of assessment, and if he so elects he shall be assessed to tax accordingly.(2)An election made in terms of subparagraph (1) shall be irrevocable.(3)For the purposes of subparagraph (1), where a farmer returns grazers to their owner, he shall be deemed to have disposed of them.6. Additional allowance in respect of cost of restocking herd depleted by drought
There shall be admissible as a deduction in the determination of the taxable income or the assessed loss of any farmer who raises or possesses livestock in a drought-stricken area or an epidemic area during any year of assessment an allowance of an amount equal to fifty per centum of the cost to him of any livestock purchased in that year of assessment in order to restock a herd depleted during the period of the drought or the epidemic disease, as the case may be, by death or enforced disposal as a result of the drought or the epidemic disease:Provided that if the number of livestock so purchased exceeds the difference between the assessed carrying capacity of the land on which the farmer engaged in raising livestock carried on such occupation, as determined by the Department of Agricultural Technical and Extension Services, and the number of livestock on hand, immediately prior to the date of such purchase, then the allowance shall not exceed an amount determined by applying the formula—A × B/ 2Cin which—A represents the cost of the livestock purchased;B represents such difference as aforesaid;C represents the number of livestock purchased.Eighth Schedule (Section 20)
Determination of taxable income or assessed loss attributable to the business of insurance
1. Interpretation
(1)In this Schedule—“assessed loss attributable to the business of insurance” means any deficiency determined after applying paragraphs 4, 5 and 6 and includes any assessed loss attributable to the business of insurance determined in respect of the previous year of assessment;“assets in Zimbabwe” means such of the assets of an insurer as—(a)relate to his life insurance business; and(b)are required to be shown as assets in Zimbabwe in balance sheets furnished by the insurer in terms of any law relating to insurance;“insurance business” means insurance business as defined in any law relating to insurance; “insurer” means a person carrying on insurance business;“investments in Zimbabwe” means such of the securities of an insurer as form part of his assets in Zimbabwe;“life insurance business” means the business of assuming the obligations of an insurer under life policies;“life policy” means a life, industrial, funeral or sinking fund policy as defined in any law relating to insurance;“local life insurance business” means a business of assuming the obligations of an insurer under local life policies;“local life policy” means a life policy which is a local policy as defined in any law relating to insurance; “productive assets in Zimbabwe” means such assets in Zimbabwe of an insurer as are securities are not—(a)outstanding premiums, cash in hand or in current account; or(b)ordinary stocks or shares; or(c)property wholly occupied by the insurer in connection with his local life insurance business; or(d)such part of any other property of the insurer as, in the opinion of the Commissioner, is occupied by him in connection with his local life insurance business; or(e)such other assets as, in the opinion of the Commissioner, did no produce investment income during the year of assessment;“public securities” mean—(a)bonds, stocks, Treasury bills or other like securities issued by the State, a local authority or a statutory corporation; or(b)loans made to any fund established in terms of the Housing and Building Act ;“short term insurance business” means insurance business in Zimbabwe which is not life insurance business;“taxable income attributable to the business of insurance” means any surplus determined after applying paragraphs 4, 5 and 6 and after deducting any assessed loss attributable to the business of insurance determined in respect of the previous year of assessment.(2)For the purposes of this Schedule, the actuarial liabilities of an insurer shall be determined on the basis used by him from time to time to value the liabilities in respect of his life insurance business in Zimbabwe for the purposes of any law relating to insurance.2. Returns and liability to tax
Nothing in this Schedule shall be construed as relieving an insurer from—(a)the obligation of rendering returns of income which is not derived from insurance business; or(b)any liability to tax in respect of income referred to in subparagraph (a).3. Information in returns
An insurer shall specify separately in a return rendered in respect of his insurance business in Zimbabwe the gross income derived by the insurer from—(a)local life insurance business; and(b)fire insurance business; and(c)accident insurance business, including employers’ insurance business; and(d)marine insurance business; and(e)fidelity or guarantee insurance business; and(f)all classes of insurance business other than those specified in subparagraphs (a) to (e).4. Determination of taxable income or assessed loss of an insurer attributable to short term insurance business
The part of the taxable income or the assessed loss of an insurer attributable to short term insurance business shall be determined by charging the losses, expenses and deductions in respect of his short term insurance business which are specified in paragraph 5 against the sum of—(a)premiums received in the course of carrying on his short term insurance business; and(b)amounts, other than premiums but including commissions in re-insurance, received from the carrying on of his short term insurance business:Provided that commission on re-insurance shall include all commission on re-insurance applicable to premiums mentioned in subparagraph (a) notwithstanding that any of the operations by which such re-insurance has been effected have been performed outside Zimbabwe; and(c)the amount of a reserve allowed as a deduction in the previous year of assessment for unexpired risks at the percentage for such risks adopted by the insurer in relation to his short term insurance operations as a whole:Provided that the amount to be added in terms of this subparagraph for the first year of assessment under this Act shall be the amount of the reserve allowed as a deduction under the similar provisions of the previous law for the immediately preceding year of assessment; and(d)amounts allowed to be deducted under the provisions of subparagraphs (a), (b), (c) and (d) of paragraph 5 or the corresponding provisions of any previous law, whether in the current or any previous year of assessment, which have been recovered or recouped during the year of assessment.5. Deductions in respect of short term insurance business
The losses, expenses and deductions in respect of short term insurance business of an insurer to which the provisions of paragraph 4 relate shall be-(a)premiums paid on re-insurance; and(b)actual losses less losses recoverable on re-insurance; and(c)expenditure and losses (other than those referred to in subparagraphs (a) and (b)) to the extent to which they are incurred for the purposes of the short term insurance business of the insurer or in the production of the amounts referred to in subparagraph (b) of paragraph 4, except to the extent to which they are expenditure or losses of a capital nature; and(d)the allowances and deductions for which provision is made in paragraphs (b), (c), (d), (e), (h), (j), (m), (o),(p), (q), (r), (s), (t), (aa) and (bb) of subsection (2) of section fifteen in so far as such allowances and deductions relate to the short term insurance business of the insurer and in so far as they have not been deducted in terms of Part III of this Act; and(e)the amount of a reserve for unexpired risks at the percentage adopted for such risks by the insurer in relation to his insurance operations as a whole which is set aside by the insurer at the end of the year of assessment.6. Determination of taxable income or assessed loss of an insurer attributable to local life insurance business
The part of the taxable income or the assessed loss of an insurer attributable to his local life insurance business shall, subject to the provisions of this Schedule, be determined by applying the formula—(A – B) + (C – D) / 2 × (E × 2) – 7 / 200 + (F – G) – Hin which—A represents the amount of the actuarial liabilities in respect of all local life policies of the insurer which were in force at the end of the previous year of assessment;B represents the amount of the actuarial liabilities in respect of all local life policies of the insurer entered into in connection with pension and benefit funds and with purchased immediate annuities which were in force at the end of the previous year of assessment;C represents the amount of the actuarial liabilities in respect of all local life policies of the insurer which were in force at the end of the year of assessment;D represents the amount of the actuarial liabilities in respect of all local life policies of the insurer entered into in connection with pension and benefit funds and with purchased immediate annuities which were in force at the end of the year of assessment;E represents the average rate of interest per centum derived by the insurer during the year of assessment from his productive assets in Zimbabwe;F represents the profit arising from the realization by the insurer of his investment in Zimbabwe computed in accordance with paragraph 7;G represents the loss arising from the realization by the insurer of his investments in Zimbabwe computed in accordance with paragraph 8;H represents the allowance, if any, to be deducted in accordance with paragraph 9.7. Determination of factor F
(1)The profit arising from the realization by an insurer of his investments in Zimbabwe shall be computed by applying whichever of the following formulae produces the lesser amount—1 X (A – B) + (C – D) / (A + C)or1 X (A – B) + (C – D) / (J + K)in which—A, B, C and D are the same factors as those employed in the formula contained in paragraph 6;I represents the total profit arising during the year of assessment from the realization by the insurer of any of his investments in Zimbabwe, which are not public securities but including such securities issued outside Zimbabwe as have been purchased by the insurer after 31st March, 1964;J represents the total amount of the assets in Zimbabwe of the insurer at the beginning of the year of assessment;K represents the total amount of the assets in Zimbabwe of the insurer at the end of the year of assessment.(2)If—(a)an insurer’s investments in Zimbabwe are transferred to another insurer in the course of or in furtherance of a scheme of reconstruction of a group of insurers or a merger or other business operation which, in the opinion of the Commissioner, is of a similar nature; and(b)the Commissioner is satisfied that, as a condition of the transfer, the transferee is to assume the liabilities of the transferor in respect of all local life policies issued by the transferor;the transferor and the transferee may elect that, notwithstanding the terms of any agreement under which the transfer was effected, for the purposes of subparagraph (1) the consideration at which the investments in Zimbabwe are transferred shall be the cost of such investments to the transferor:Provided that, if the transferee subsequently realises or disposes of any of the investments so transferred, otherwise than in the circumstances referred to in this subparagraph, the cost at which he acquired the investments shall be deemed, for the purpose of determining factor I, to have been the cost at which they were acquired by the first transferor who made an election in terms of this subparagraph.8. Determination of factor G
The loss arising from the realization by an insurer of his investments in Zimbabwe shall be computed by applying whichever of the following formulae produces the lesser amount—L X (A – B) + (C – D) / (A + C)orL × (A – B) + (C – D) / (J + K)in which—A, B, C and D are the same factors as those employed in the formula contained in paragraph 6;J and K are the same factors as those employed in the formulae contained in paragraph 7;L represents the total loss arising during the year of assessment from the realization by the insurer of any of his investments in Zimbabwe which are not public securities but including such securities issued outside Zimbabwe as have been purchased by the insurer after the 31st March, 1964.9. Determination of factor H
(1)A deduction in respect of the taxable income of an insurer shall, subject to the provisions of this paragraph, be made of an amount computed by applying the formula—(M – N) – 0 X 7 / 2000 X (A – B) + (C – D) / 2in which—A, B, C and D are the same factors as those employed in the formula contained in paragraph 6;M represents the interest derived by the insurer during the year of assessment from such of his public securities as are assets in Zimbabwe, excluding such securities issued outside Zimbabwe as have been purchased by the insurer after the 31st March, 1964;N represents the interest, computed in accordance with paragraph 10, derived by the insurer during the year of assessment from such of his public securities as are directly related to that part of his local life insurance business which is attributable to local life policies entered into in connection with pension and benefit funds and with purchased immediate annuities;O represents the average rate of interest per centum derived by the insurer during the year of assessment from such of his public securities as are assets in Zimbabwe excluding any such securities issued outside Zimbabwe as have been purchased by the insurer after the 31st March, 1964.(2)No deduction shall be made in terms of this paragraph if, by applying the formula contained in paragraph 6 without the factor H, the insurer would have a loss.(3)No allowance referred to in subparagraph (1) shall exceed an amount equal to the amount computed by applying the formula contained in paragraph 6 without the factor H.10. Determination of factor N
The interest derived by an insurer during the year of assessment from such of his public securities as are directly related to that part of his local life insurance business which is attributable to local life policies entered into in connection with pension and benefit funds and with purchased immediate annuities shall be computed by applying the formula—M/2 × {B/A + D/C}in which—A, B, C and D are the same factors as those employed in the formula contained in paragraph 6; M is the same factor as is employed in the formula contained in paragraph 9.Ninth Schedule (Section 26)
Non-resident shareholders’ tax
1. Interpretation
(1)In this Schedule—“company” means any company which is ordinarily resident in Zimbabwe;“dividend” means any amount which is distributed by a company to its shareholders, but excluding—(a)any amount so distributed by a building society which is not distributed as a dividend in respect of—(i)in the case of the Central African Building Society, a paid-up permanent share-class “A”; and(ii)in the case of the Founders Building Society, an ordinary permanent fully paid-up share; and(iii)in the case of the Beverley Building Society, a foundation fully paid-up share or class “A” share;and(c)any amount so distributed which, in the opinion of the Commissioner, is a return of the amount received by the company for its shares; and(d)any amount so distributed by the Industrial Development Corporation of Zimbabwe, Limited, in respect of its issued share capital; and(f)any amount so distributed by the Zimbabwe Development Bank established by section 3 of the Zimbabwe Development Bank Act ; and(g)any amount so distributed to the International Finance Corporation referred to in the International Financial Organizations Act ; and(h)any amount so distributed by a licensed investor having a qualifying degree of export orientation which arises from its operations in an special economic zone;(i)any amount so distributed which, in the opinion of the Commissioner, is a return of an amount contributed to the capital of a private business corporation by a member;(j)any amount so distributed by an industrial park developer which arises from the operation of his industrial park;less any income tax which has been deducted from such amount in terms of section twenty-five;“foreign company” means a body corporate which is ordinarily resident in a state or territory other than Zimbabwe;“person”, in addition to the meaning given to the term in section two, includes, in relation to income the subject of a trust to which a beneficiary is entitled, the trust;“relevant accounting year” means the year or period whose end coincided with the end of the year of assessment or on the date which was accepted by the Commissioner in terms of subparagraph (ii) or paragraph (b) of subsection (13) of section thirty-seven, immediately prior to the date of distribution of a dividend;“shareholder” includes a member of a private business corporation.(2)For the purposes of this Schedule, a dividend shall be deemed to be distributed when it is paid to the shareholder, credited to his account or so dealt with that he becomes entitled to it, whichever occurs first.(3)For the purposes of this Schedule, a company and a foreign company shall be deemed to be ordinarily resident in the state or territory in which its central management and control is situated.2. Companies to withhold the tax
(1)Every company which distributes a dividend to—(a)a person, other than a company, a pension fund, a benefit fund or a medical aid society, who is not ordinarily resident in Zimbabwe; or(b)a partnership which is not ordinarily resident in Zimbabwe; or(d)a foreign life insurance company, in respect of any shareholding determined by the Commissioner as having been acquired from funds other than those arising from the life insurance business in Zimbabwe of that foreign life insurance company;shall withhold non-resident shareholders’ tax from that dividend and shall pay the amount withheld to the Commissioner within thirty days of the date of distribution or within such further time as the Commissioner may for good cause allow:Provided that where a company establishes to the satisfaction of the Commissioner that, during the relevant accounting year, its receipts from sources outside Zimbabwe exceeded fifteen per centum of its total receipts, the amount of any dividend shall be deemed to be the amount determined in accordance with the formula—A × B / Cin which—A represents the amount of the divided;B represents the aggregate of the receipts of the company from sources within Zimbabwe during the relevant accounting years;C represents the aggregate of the total receipts of the company during the relevant accounting year.For the purposes of this proviso—“receipts” means gross receipts on both income and capital account other than sums received by the company for its shares, debentures or similar capitalizations or from borrowings.(2)Notwithstanding subparagraph (1), where a company distributes a dividend to the Commonwealth Development Corporation the company shall not be required to withhold and pay non-resident shareholders’ tax in respect of so much of the dividend as in the opinion of the Commissioner relates to operations of the company which are connected with any project approved for the purposes of this subparagraph by the Minister.(3)The non-resident shareholders’ tax shall be withheld in terms of subparagraph (1) notwithstanding any objection that may be lodged to any decision made by the Commissioner in terms of the proviso to subparagraph (1) or the definition of “dividend” in subparagraph (1) of paragraph 1.(4)Where non-resident shareholders’ tax is withheld in terms of subparagraph (1), the company shall provide the shareholder with a certificate, in the form approved by the Commissioner, showing—(a)the gross amount of the dividend; and(b)the amount, if any, of income tax deducted in terms of section twenty-five; and(c)any reduction made in terms of the proviso to subparagraph (1); and(d)the amount of the non-resident shareholders’ tax withheld.(5)Any company which fails to provide a shareholder with a certificate in terms of subparagraph (4), or furnishes an incorrect certificate under that subparagraph, shall be guilty of an offence and liable to a fine not exceeding level five or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment.Provided that, if it is proved that the company’s conduct was wilful, it shall be liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.2A. Payment of tax where dividend deemed to have been paid in terms of section 26(2)
Where a dividend is deemed to have been paid in terms of subsection (2) of section twenty-six, the company which is deemed to have paid the dividend shall pay non-resident shareholders’ tax for that deemed dividend in accordance with the provisions on self-assessment as provided for in section 37A.3. Agents to withhold the tax not deducted by company
(1)Every agent who receives on behalf of a shareholder who is—(a)a person, other than a company, a pension fund, a benefit fund or a medical aid society, who is not ordinarily resident in Zimbabwe; or(b)a partnership which is not ordinarily resident in Zimbabwe; or(d)a foreign life insurance company, in respect of any shareholding determined by the Commissioner as having been acquired from funds other than those arising from the life insurance business in Zimbabwe of that foreign life insurance company;a dividend from which non-resident shareholders’ tax has not been withheld by the company distributing the dividend, shall withhold non-resident shareholders’ tax from that dividend and shall pay the amount withheld to the Commissioner within thirty days of the date of receipt of the dividend:Provided that, subject to the approval of the Commissioner, the proviso to subparagraph (1) of paragraph 2 may be applied to the dividend received by the agent for the purpose of calculating the amount in respect of which the non-resident shareholders’ tax shall be withheld in terms of this subparagraph.(2)Where non-resident shareholders’ tax is withheld in terms of subparagraph (1) the agent shall provide the shareholder with a certificate, in the form approved by the Commissioner, showing—(a)the name of the company distributing the dividend; and(b)the gross amount of the dividend; and(c)the amount, if any, of income tax deducted in terms of section twenty-five; and(d)any reduction made in terms of the proviso to subparagraph (1); and(e)the amount of the non-resident shareholders’ tax withheld.(2a)Any agent who fails to provide a shareholder with a certificate in terms of subparagraph (2), or furnishes an incorrect certificate under that subparagraph shall be guilty of an offence and liable to a fine not exceeding level five or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment.Provided that, if it is proved that the agent’s conduct was wilful, he shall be liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.(3)For the purposes of this paragraph, a person shall be deemed to be the agent of a shareholder and to have received a dividend on behalf of that shareholder if—(a)that person’s address appears in the share register of the company as the registered address of the shareholder; and(b)the warrant or cheque in payment of the dividend distributable to the shareholder is delivered at that person’s address:Provided that any person so deemed to be the agent of a shareholder shall, as regards such shareholder and in respect of any income received by or accruing to or in favour of the shareholder, have and exercise all the powers, duties and responsibilities of an agent for a taxpayer absent from Zimbabwe.4. Shareholder to pay the tax not withheld by company or agent
A shareholder to whom a dividend has been distributed from which non-resident shareholders’ tax has not been withheld in terms of paragraph 2 or 3 or recovered in terms of section seventy-seven shall pay to the Commissioner within thirty days of the date of distribution of the dividend the tax that should have been withheld:Provided that, subject to the approval of the Commissioner, the proviso to subparagraph (1) of paragraph 2 may be applied to the dividend received by the shareholder for the purpose of calculating the amount in respect of which the non-resident shareholders’ tax shall be paid in terms of this paragraph.5. Returns to be furnished
Payment of the non-resident shareholders’ tax by a company or an agent shall be accompanied by a return in the form prescribed.6. Penalty for non-payment of the tax
(1)Subject to subparagraph (2), a company or an agent in Zimbabwe who falls to withhold or to pay the Commissioner any amount of non-resident shareholders’ tax as provided in paragraph 2 or 3 shall be personally liable for the payment to the Commissioner, not later than the date on which payment should have been made in terms of paragraph 2 or 3, as the case may be, of—(a)the amount of non-resident shareholders’ tax which the company or the agent, as the case may be, failed to pay to the Commissioner; and(b)a further amount equal to one hundred per centum of such non-resident shareholders’ tax.(2)The Commissioner, if he is satisfied in any particular case that the failure to pay to him non-resident shareholders’ tax was not due to any intent to evade the provisions of this Schedule, may waive the payment of the whole or such part as he thinks fit or repay the whole or such part as he thinks fit of the amount referred to in subparagraph (b) of subparagraph (1).(3)If a defaulting company or agent referred to in subparagraph (1) does not pay the penalty in full on the date on which the default has ceased, interest, calculated at a rate to be fixed by the Minister by statutory instrument, shall be payable on so much of the penalty as remains unpaid by the company or agent during the period beginning on the date the default has ceased and ending on the date the penalty is paid in full, and such interest shall be recoverable by the Commissioner by action in any court of competent jurisdiction:Provided that in special circumstances the Commissioner may extend the time for payment of the penalty without charging interest.7. Refund of non-resident shareholders’ tax
If it is proved to the satisfaction of the Commissioner that any person has been charged with non-resident shareholders’ tax—(a)in excess of the amount properly chargeable in terms of this Schedule; or(c)in respect of any dividend which has subsequently been rescinded with the approval of the Minister in order to comply with any conditions attaching to the payment of any dividend outside Zimbabwe in terms of the law relating to exchange control; or(d)in respect of any dividend to the extent that it has subsequently been utilized to import essential goods into Zimbabwe in accordance with concessions allowed or permission granted by the Minister in terms of any enactment;the Commissioner shall authorize a refund in so far as it has been overpaid or is in respect of any such dividend:Provided that the Commissioner shall not authorize any refund in terms of this paragraph unless the claim thereof is made within six years of the date of payment of such tax.Tenth Schedule
Branch profits tax
Eleventh Schedule (Section 62(1)(b))
Decisions of the commissioner to which any person may object
The decisions of the Commissioner to which any person may object under paragraph (b) of subsection (1) of section sixty-two are those made in terms of—(a)paragraph (c) of the definition of “mining operations” in subsection (1) of section two;(b)paragraphs (a), (d), (e), (f), (g), (j) and (l) of the definition of “gross income” in subsection (1) of section eight;(c)subsection (4) of section twelve;(e)the following provisions of section fifteen—(i)paragraphs (d), (e), (f), (g), (i), (k), (p), (v), (w), (x) and (y) of subsection (2);(ii)proviso (ii) to subsection (3):Provided that in any objection made in terms of this subparagraph and in any subsequent appeal lodged in terms of section sixty-five against the decision of the Commissioner thereon, the burden of proof that the change in the shareholding of a company was not effected solely or mainly in pursuance of or in connection with any scheme to take advantage of the assessed loss of that company, shall be upon the company claiming such assessed loss as a deduction under subsection (3) of section fifteen;(iii)proviso (iii) to subsection (3);(f)subsection (2) of section sixteen;(l)subsection (1) and the proviso to subsection (2) of section forty-five;(m)subsection (6) and the proviso to subsection (7) of section forty-six;(n)subsection (1) of section forty-seven;(o)section ninety-eight:Provided that in any objection made in terms of this paragraph and in any subsequent appeal lodged in terms of section sixty-five against the decision of the Commissioner thereon, the burden of proof that the avoidance or postponement of liability for any tax or the reduction of the amount thereof was neither the sole purpose nor one of the main purposes of any transaction, operation or scheme, shall be upon the taxpayer;(p)the following provisions of the Second Schedule—(i)subparagraph (2) of paragraph 2;(ii)proviso (ii) to paragraph 4:Provided that in any objection made in terms of this subparagraph and in any subsequent appeal lodged in terms of section sixty-five against the decision of the Commissioner thereon, the burden of proof that any transaction, operation or scheme did not have as its sole purpose or one of its main purposes the avoidance or postponement of liability for or reduction of tax, shall be upon the taxpayer;(iv)the proviso to subparagraph (2) of paragraph 10;(v)subparagraph (1) of paragraph 11;(vi)subparagraph (b) of paragraph 12;(vii)the proviso to paragraph 12:Provided that in any objection made in terms of this subparagraph and in any subsequent appeal lodged in terms of section sixty-five against the decision of the Commissioner thereon, the burden of proof that any transaction, operation or scheme did not have as its sole purpose or one of its main purposes the avoidance or postponement of liability for or reduction of tax, shall be upon the taxpayer;(q)the following provisions of the Fourth Schedule—(i)subparagraphs (ii), (iii) and (v) of paragraph (a) of the definition of “industrial building” in paragraph 1;(ii)the definition of “training equipment” in paragraph 1;(iii)provisos (ii) and (iii) to paragraph 2;(r)the following provisions of the Fifth Schedule—(i)the definition of “approved estimated life” in paragraph 1;(ii)the definition of “training equipment” in paragraph 1;(iii)the definition of “new mine” in subparagraph (8) of paragraph 4;(iv)subparagraphs (3) and (6) of paragraph 8;(s)subparagraphs (c), (e) and (h) of subparagraph (1) of paragraph 4 of the Seventh Schedule;(t)subparagraph (2) of paragraph 7 of the Eighth Schedule.(u)the following provisions of the Ninth Schedule—(i)the definition of “dividend” in subparagraph (1) of paragraph 1;(ii)subparagraph (d) of subparagraph (1) of paragraph 2;(iii)the proviso to subparagraph (1) of paragraph 2;(iv)subparagraph (2) of paragraph 2;(v)subparagraph (d) of subparagraph (1) of paragraph 3;(vi)subparagraph (2) of paragraph 6;(v)paragraph 11 of the Thirteenth Schedule;(w)the following provisions of the Fifteenth Schedule—(i)the definition of “dividend” in subparagraph (1) of paragraph 1;(ii)subparagraph (2) of paragraph 6;(x)the provisions of the Sixteenth Schedule, where the determination relates to—(i)whether or not interest is from a source within Zimbabwe; or(ii)whether or not a payee is ordinarily resident in Zimbabwe; or(iii)the waiver or repayment of any amount referred to in subparagraph (1) of paragraph 6;(y)the provisions of the Seventeenth Schedule, where the determination relates to—(i)whether or not any amounts are fees for the purposes of that Schedule; or(ii)whether or not a payee is ordinarily resident in Zimbabwe; or(iii)the waiver or repayment of any amount referred to in subparagraph (1) of paragraph 6;(z)the provisions of the Eighteenth Schedule, where the determination relates to—(i)whether or not a remittance was in respect of allowable expenditure; or(ii)whether or not a person or partnership is a non-resident person; or(iii)the waiver or repayment of any amount referred to in subparagraph (1) of paragraph 4;(aa)the provisions of the Nineteenth Schedule, where the determination relates to—(i)whether or not any amounts are royalties for the purposes of that Schedule; or(ii)whether or not a payee is a non-resident person; or(iii)the waiver or repayment of any amount referred to in subparagraph (1) of paragraph 6;(bb)the provisions of the Twenty-First Schedule, where the determination relates to—(i)whether or not any amount is interest for the purposes of that Schedule; or(ii)whether or not an amount of interest is from a source in Zimbabwe; or(iii)the waiver or repayment of any amount referred to in subparagraph (1) of paragraph 6.(cc)the provisions of the Twenty-Seventh Schedule, where the determination relates to—(i)the residence of a member or former member of a mutual society ; or(ii)the waiver or repayment of any amount in terms of subparagraph (3) of paragraph 8; or(iii)the refund of an overpayment in terms of paragraph 10.Twelfth Schedule (Sections 64, 65 and 66)
Rules for regulating appeals
Part I
The rules in this Part shall apply in the determination of appeals under section sixty-five or any proceedings incidental thereto or connected therewith—1.The Special Court shall have all the powers of the High Court as in civil actions, and the general procedure and practice, save as specially provided for by these rules, shall be that prevailing in the High Court, in so far as the same is applicable, and if any matter should arise which is not contemplated by either such procedure and practice or these rules, the Special Court shall give instructions regarding the course to be pursued, which instructions shall be binding on the parties.2.In any case in which the Special Court makes an order as to costs, the bill of such costs shall be taxed by the registrar of the High Court:Provided that either the Commissioner or the appellant may apply to the Special Court for reconsideration of any items or portions of items in such bill, and the Special Court’s decision as to whether such items or portions of items shall be allowed, reduced or disallowed shall be final.3.The fees, charges and rates to be allowed in such bill of costs shall be as far as applicable those fixed by the tariff of fees and charges in cases heard before the High Court.4.The Special Court may enlarge any of the times and periods set out in these rules on good cause being shown or by agreement of the parties.5.When any taxpayer has given notice of an appeal he shall state the grounds of his appeal and set forth in writing all the facts which he considers material and relevant and the contentions in law based thereon. Such statement shall be called the “appellant’s case” and shall be lodged with the Commissioner in duplicate within sixty days of the date on which notice of appeal is given to the Commissioner.6.Should the statement of facts in the appellant’s case be admitted by the Commissioner to be sufficient and correct, he shall within sixty days of the lodging of the appellant’s case draw up and submit to the appellant a document embodying the admitted statement of facts, the contentions in law of the appellant and the contentions in law of the Commissioner. Such document shall be called an “agreed case”.7.The appellant and the Commissioner may agree to a statement of facts, each setting out his respective contention in law based on such facts, in the form of an agreed case.8.The agreed case shall be transmitted to the Special Court by the Commissioner within fourteen days of submitting the agreed case to the appellant in terms of rule 6, and the arguments on appeal and the decision of the Special Court shall be confined to the facts admitted.9.Should the Commissioner not admit the statement of facts in the appellant’s case to be correct or sufficient, or should he not come to an agreement with the appellant on a statement of facts, he shall within sixty days of the receipt of the appellant’s case lodge with the taxpayer a statement setting out which of the allegations he admits as correct and which he denies, and shall set out all such other facts which he considers relevant and material to the determination of the appeal. The Commissioner shall also state his contentions in law. Such statement shall be called the “Commissioner’s case”.10.Should the appellant and the Commissioner not agree in regard to the statement of facts, the Commissioner shall transmit to the Special Court the appellant’s case and the Commissioner’s case within thirty days of the lodgement of the Commissioner’s case with the taxpayer.11.The Commissioner shall transmit to the Special Court, together with the agreed case, or with the appellant’s case and the Commissioner’s case, a certified copy or extract of the assessment in so far as it relates to the assessment made upon the appellant, and also the notice of objection lodged and the notice of appeal, together with any material correspondence related thereto, unless the same have already been included in the statement of facts. A copy of the decision appealed from and of the reasons for the same shall accompany the documents above mentioned.12.The Special Court shall, after consultation with the parties, notify them of a day, time and place for the hearing of the appeal, such day being not less than thirty days after the receipt of the agreed case or of the appellant’s and Commissioner’s cases, and shall give notice to the Commissioner of the appointed day.13.If any facts are in dispute either the appellant or the Commissioner may call such evidence and produce such documents at the hearing of the appeal as may be deemed material and relevant.14.If neither the appellant nor anyone authorized to appear on his behalf appears before the Special Court at the time and place appointed for the purpose then the Special Court, upon the request of the Commissioner and upon proof that the prescribed notice of the sitting of the Special Court has been given to the appellant, shall confirm the assessment objected to, unless any question of law arises, in which case the Special Court may, before giving its decision, call upon the Commissioner for argument in support of the assessment.Thirteenth Schedule (Sections 71, 72, and 73)
Employees' tax
Part I – Preliminary
1. Interpretation
(1)In this Schedule—"auction rate” “employee” means an individual to whom remuneration is paid or payable at an annual rate that is more than the amount specified in subparagraph (i) of paragraph (a) of subsection (2) of section 14 of the Finance Act in respect of the year of assessment concerned;“employees’ tax” means any amount required to be withheld by an employer in terms of paragraph 3;“employees’ tax certificate” means a certificate required to be issued by an employer in terms of paragraph 14;“employer”—(a)means any person (excluding any person not acting as a principal or any person or class of persons specified by the Commissioner, but including any person acting in a fiduciary capacity or in his capacity as a trustee of an insolvent or deceased estate or an administrator of a benefit fund, pension fund, provident fund, retirement annuity fund or any other fund) who pays or is liable to pay to any employee any amount by way of remuneration, and any person responsible for the payment of any amount by way of remuneration to any employee under any law or out of public funds (including the funds of any statutory corporation or undertaking of the State) or out of moneys appropriated by Act of Parliament; and(b)includes a representative of the employer;“Exchange Control (Exchange Rate) Direction” “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;“non-resident employer “ means—(a)an individual who is not ordinarily resident in Zimbabwe; or(b)a company, partnership or organisation which does not have its head office or principal place of business within Zimbabwe;“principal”, in relation to an employer who or which is a subordinate person, means any company, partnership or organisation referred to in the definition of “subordinate person”;“remuneration” means any amount of income which is paid or payable to any person by way of any salary, leave pay, allowance, wage, overtime pay, bonus, gratuity, commission, fee, emolument, pension, superannuation allowance, retiring allowance, stipend or commutation of a pension or an annuity, whether in cash or otherwise and whether or not in respect of services rendered, including any amount referred to in paragraph (a), (b), (c) or (f) of the definition of “gross income” in subsection (1) of section eight, but not including—(a)any amount paid or payable to any person in respect of services rendered or to be rendered by that person in the course of any trade conducted by him independently of the person by whom such amount is paid or payable:Provided that where any such amount is paid or payable to—(i)an insurance agent in respect of any act done by him or her on behalf of a person who is a registered insurer in terms of the Insurance Act in relation to the initiating of insurance business, the receiving of proposals for insurance, the issuing of policies or the collection of premiums; or(ii)a person in respect of any act done by him or her on behalf of a person who is a registered estate agent in terms of the Estate Agents Act in relation to introducing parties to the sale or lease of immovable property to each other or negotiating or concluding such sale or lease;such amounts shall constitute remuneration for the purposes of this Schedule;or(b)any amount of director’s fees paid or payable to any individual by any company in respect of services rendered or to be rendered by such individual to such company if no other amounts constituting remuneration in terms of this definition have been paid or become payable to such individual by such company; or(c)any amount of fees paid or payable to the chairman or a member of a board of any statutory corporation in respect of services rendered or to be rendered by such chairman or member on such board if no other amounts constituting remuneration in terms of this definition have been paid or become payable to such chairman or member by such statutory corporation; or(d)any amount exempt from income tax by virtue of the Third Schedule; or(e)any amount paid or payable out of moneys of a partnership to a person who is a member of that partnership; or(f)any amount paid or payable to an employee wholly in reimbursement of expenditure actually incurred by such employee in the course of his employment; or(g)any amount which is paid or payable to a person by way of a commutation of a pension or annuity and which does not form part of that person’s gross income as defined in section eight; or(i)any amount which the Commissioner-General directs or prescribes shall not be remuneration for the purposes of this Schedule;“remuneration liable to employees’ tax” means so much of the remuneration payable to an employee as remains after the deduction of any amount in respect of ordinary contributions as defined in paragraph 1 of the Sixth Schedule excluding contributions to a benefit fund;“remuneration paid in foreign currency” means remuneration paid in United States dollars or Euros or in any currency denominated under the Exchange Control (General) Order;“representative of the employer” means—(a)in the case of any company, the public officer of the company or any other officer of the company who controls the payment of remuneration and who has been appointed by the company and approved by the Commissioner or, in the event of the company being placed in liquidation or under judicial management, the liquidator or judicial manager, as the case may be;(b)in the case of an association of persons, other than a company, a member of the association of persons appointed by its governing body;(c)in the case of a local or like authority, an officer of the local or like authority appointed by the local or like authority;(d)in the case of a person under legal disability, the trustee;(e)in the case of an employer who is not ordinarily resident in Zimbabwe, any agent of such employer who is authorized to pay remuneration on behalf of such employer;(f)in the case of an individual, other than a person referred to in subparagraph (a), (b), (c), (d) or (e), that individual or any other individual authorized to pay remuneration on behalf of that individual;but nothing in this definition shall be construed as relieving any person from any liability, responsibility or duty imposed upon him by this Schedule.“subordinate person”, in relation to any company, partnership, organisation or other person, means a branch or division of a company (not being a branch or division that is a subsidiary of the company as defined in section 143 of the Companies Act ), partnership or organisation which has its bead office or principal place of business within Zimbabwe;(2)Any trustee shall, as regards any amounts paid or payable by the deceased prior to his death or by the person under a legal disability prior to his becoming subject to such legal disability by way of remuneration to any employee, be subject, in his representative capacity, in all respects to the same duties, responsibilities and liabilities under this Schedule as if the amounts had been paid or payable by him.Part II – Rights and duties of employers
2. Registration of employers
(1)Subject to paragraph 2A, every person who becomes an employer shall apply to the Commissioner in such form as may be prescribed for registration as an employer, within fourteen days of his becoming an employer.(2)Every person who has registered as an employer under subparagraph (1) shall, within fourteen days after changing his address or ceasing to be an employer, notify the Commissioner in such manner and form as may be prescribed of his new address or of the fact of his having ceased to be an employer, as the case may be.(3)The Commissioner may, at such times as he may decide, issue public notices drawing attention to the provisions of this paragraph.(4)Every non-resident employer shall appoint a resident representative to secure registration on its behalf under this paragraph and otherwise to act as its agent for all purposes of this Schedule.(5)A non-resident employer shall give notice in writing to the Commissioner-General of the appointment of a resident representative under paragraph (4).(6)If a non-resident employer fails, when required in writing to do so by the Commissioner-General, to furnish the Commissioner-General with particulars of the appointment of a resident representative under paragraph (4) within such period as the Commissioner-General shall specify, the Commissioner-General may—(a)appoint a person to be the non-resident employer’s resident representative, and such person shall secure registration on the employer’s behalf under this paragraph and otherwise act as the employer’s agent for all purposes of this Schedule; and additionally or alternatively;(b)cause any work permit held by the employer or any director or employee of the employer to be forthwith cancelled upon the written request of the Commissioner-General to the Chief Immigration Officer.2A. Principals to register as employers in lieu of subordinate persons
(1)With effect from the date of commencement of the Finance Act, 2011, where an employer is a subordinate person, the principal of that employer must, for the purposes of this Schedule, register as the employer instead of the first-mentioned employer.(2)Every principal shall, on or before the 1st January, 2012, apply to the Commissioner in such form as may be prescribed for registration as the employer in place of every entity—(a)that is its subordinate person; and(b)which, on the date of commencement of the Finance Act, 2011, is registered as an employer.3. Employers to withhold tax
(1)Every employer (whether or not he has registered as an employer in terms of subparagraph (1) of paragraph 2) who pays or becomes liable to pay any amount by way of remuneration to any employee shall, unless the Commissioner has granted authority to the contrary, withhold from that amount by way of employees’ tax an amount which shall be determined in accordance with such tax deduction tables as may be prescribed or as is provided in subparagraph (2), (3) or (4) of this paragraph or in subparagraph (2) of paragraph 20, whichever is applicable, in respect of the liability for income tax of that employee, and shall pay the amount so withheld to the Commissioner on the tenth day of the month following, or within such longer period not exceeding seven days as the Commissioner may for good cause allow, after the end of the month during which the amount was withheld or, in the case of a person who ceases to be an employer before the end of such month, on the following day after the day on which he or she ceases to be an employer.(1b)Where part of the remuneration from which employees’ tax is required to be withheld under subparagraph (1) is remuneration paid in foreign currency, the employer shall determine the amount of employees’ tax to be withheld from that part of the remuneration that is paid in foreign currency separately from the other remuneration, and shall pay to the Commissioner-General within the period specified in subparagraph (1) the appropriate amounts of employees’ tax.(2)The amount to be withheld in respect of employees’ tax from any payment to which paragraph (c) of the definition of “gross income” in subsection (1) of section eight apply shall be ascertained by the employer from the Commissioner before making such payment, and the Commissioner’s determination of the amount to be so withheld shall be final.(3)If an employer has not at any time received any tax code declaration from an employee as required by subparagraph (1) or (3) of paragraph 16 and has not in respect of that employee received a directive from the Commissioner as provided in subparagraph (2) of paragraph 16 or subparagraph (2) of paragraph 20 he shall, until such declaration or directive is received, withhold employee’s tax in accordance with the prescribed tax deduction tables.(4)An employer shall, at the request of an employee in the manner and form prescribed, withhold from any amount of remuneration an amount by way of employees’ tax greater than that required to be withheld in terms of subparagraph (1), (1a) or (1b) as read with subparagraph (5), (6), (7), (8), (9), (10), (11) or (12), as the case may be, and shall pay such amount to the Commissioner, and the provisions of this Schedule relating to employees’ tax shall apply, mutatis mutandis, in respect of such amount:Provided that the Commissioner, having regard to the circumstances of the case, may direct that the amount withheld shall be reduced to an amount not being less than that required to be withheld in terms of subparagraph (1) as read with subparagraph (5), (6), (7), (8), (9), (10), (11) or (12), as the case may be.(5)For the year of assessment beginning on the 1st April, 1979, where in terms of subparagraph (1) or (3) the amount to be withheld by an employer is to be determined in accordance with the prescribed tax deductible tables, the said subparagraph shall apply as if it required the employer to withhold, in respect of the period beginning on the 1st October, 1979, and ending on the 31st March, 1980, in addition to any amount so determined, a sum equal to ten per centum of that amount.(6)For the year of assessment beginning on the 1st April, 1980, where in terms of subparagraph (1) or (3) the amount to be withheld by an employer is to be determined in accordance with the prescribed tax deduction tables, the said subparagraph shall apply as if it required the employer to withhold, in addition to any amount so determined, a sum equal to ten per centum of that amount.(7)For the years of assessment beginning on the 1st April, 1981, and the 1st April, 1982, where in terms of subparagraph (1) or (3) the amount to be withheld by an employer is to be determined in accordance with the prescribed tax deduction tables, the said subparagraph shall apply as if it required the employer to withhold, in addition to any amount so determined, a sum equal to fifteen per centum of that amount.(8)For the year of assessment beginning on the 1st April, 1983, where in terms of subparagraph (1) or (3) the amount to be withheld by an employer is to be determined in accordance with the prescribed tax deduction tables, the said subparagraph shall apply as if it required the employer to withhold—(a)in respect of the period beginning on the 1st April, 1983, and ending on the 30th September, 1983, in addition to any amount so determined, a sum equal to fifteen per centum of that amount; and(b)in respect of the period beginning on the 1st October, 1983, and ending on the 31st March, 1984, in addition to any amount so determined, a sum equal to twenty-five per centum of that amount.(9)For the year of assessment beginning on the 1st April, 1984, where in terms of subparagraph (1) or (3) the amount to be withheld by an employer is to be determined in accordance with the prescribed tax deduction tables, the said subparagraph shall apply as if it required the employer to withhold in respect of the period beginning on the 1st October, 1984, and ending on the 31st March, 1985, a sum equal to five per centum of the amount so determined, which sum shall be in addition to that amount and to any amount to be withheld in terms of subparagraph (10).(10)For the terms of assessment beginning on the 1st April, 1985, 1986 and 1987, where in terms of subparagraph (1) or (3) the amount to be withheld by an employer is to be determined in accordance with the prescribed tax deduction table, the said subparagraph shall apply as if it required the employer to withhold, in addition to any amount so determined, a sum equal to fifteen per centum of that amount.(11)For the year of assessment beginning on the 1st April, 1985, where in terms of subparagraph (1) or (3) the amount to be withheld by an employer is to be determined in accordance with the prescribed tax deduction tables, the said subparagraph shall apply as if it required the employer to withhold in respect of the period beginning on the 1st April, 1985, and ending on the 30th September, 1985, a sum equal to five per centum of the amount so determined, which sum shall be in addition to that amount and to any amount to be withheld in terms of subparagraph (10).(12)For the year of assessment beginning on the 1st April, 1992, where in terms of subparagraph (1) or (3) the amount to be withheld by an employer is to be determined in accordance with the prescribed tax deduction tables, the said subparagraph shall apply as if it required the employer to withhold, in respect of the period beginning on the 1st October, 1992, and ending on the 31st March, 1993, in addition to any amount so determined, a sum equal to ten per centum of that amount.(13)For the years of assessment beginning on the 1st April, 1995, and the 1st April, 1996 where in terms of subparagraph (1) or (3) the amount to be withheld by an employer is to be determined in accordance with the prescribed tax deduction tables, the said paragraph shall apply as if it required the employer to withhold, in addition to any amount so determined, a sum equal to five per centum of that amount.4. Employers to keep records and to furnish returns
(1)Every employer shall, in respect of each employee, maintain a record showing the amounts of remuneration paid or payable by him to such employee and the amount of employee’s tax withheld from each such amount of remuneration in respect of the year of assessment, and such record shall be retained by the employer and shall be available for scrutiny by the Commissioner.(2)Every employer shall, in respect of the year of assessment concerned, furnish to the Commissioner—(a)returns in such form as may be prescribed showing—(i)the name and address of each employee to whom he paid or was liable to pay remuneration during such year; and(ii)the total remuneration paid or payable to each employee in respect of such year; and(iii)the total amount of employees’ tax withheld by him from such remuneration in respect of such year;and(b)a copy of each employee’s tax certificate in respect of such year delivered by such employer under paragraph 14.(3)The returns referred to in subparagraph (2) shall be submitted to the Commissioner within thirty days, or within such longer period as the Commissioner may approve, after the end of the year of assessment:Provided that if the employer ceases to carry on any business or other undertaking in respect of which he has paid or become liable to pay remuneration or otherwise ceases to be an employer, the returns shall be in respect of the period from the 1st April immediately preceding the date on which he ceased to carry on such business or other undertaking or otherwise ceased to be an employer, as the case may be, to the date of such cessation and shall be furnished within fourteen days of such cessation or within such longer period as the Commissioner may approve.5. Accrual of amounts withheld
An amount which has been withheld by way of employees’ tax in terms of this Part by an employer from the remuneration paid or payable to an employee shall be deemed, for the purposes of this Act, to have accrued to the employee on the date such amount was withheld.6. No actions to be maintained in connection with the withholding of amounts in terms of this Part
No action shall lie against an employer who withholds any amount of employees’ tax in compliance or intended compliance with this Part by reason only of his withholding of that amount.7. Agreement to avoid the provisions of this Part
An agreement between an employer and an employee whereby the employer undertakes not to withhold employees’ tax shall be void.8. Paragraph 3 to be in derogation of any other law, instrument or agreement
(1)The provisions of paragraph 3 shall be in derogation of any law, instrument or agreement which empowers, requires, authorizes, prohibits or regulates the deduction, withholding, reduction or attachment of any amount payable by way of remuneration.(2)A law, instrument or agreement referred to in subparagraph (1) shall be deemed for all purposes to apply only to so much of any remuneration payable to an employee as remains after the withholding of any employees’ tax.9. Remunerator payable to deceased estates
Immediately upon the death of an employee the employer shall apply to the Commissioner for a directive in respect of the amount of employees’ tax to be withheld from remuneration payable by the employer to the deceased estate of the employee or to any other person, and no such remuneration shall be paid by the employer to the deceased estate of the employee or to such other person otherwise than in accordance with such directive.10. Failure or refusal of employers to withhold or to remit employee’ tax
(1)Subject to the provisions of paragraph 11, an employer who fails to withhold or to pay to the Commissioner any amount of employees’ tax as provided in paragraph 3 shall be personally liable for the payment to the Commissioner, not later than the date on which payment should have been made if the employees’ tax had been withheld in terms of paragraph 3, of—(a)the amount of employees’ tax which he failed to withheld or to pay to the Commissioner; and(b)a further amount equal to such employees’ tax.(2)The amounts for the payment of which an employer is liable in terms of subparagraph (1)—(a)shall be debts due by the employer to the State; and(b)may be sued for and recovered by action by the Commissioner in any court of competent jurisdiction.(3)For the purposes of this paragraph the Commissioner may make an assessment in which the amount of employees’ tax for which an employer is personally liable by virtue of subparagraph (1) is estimated, and section forty-five shall, with necessary modifications, apply to such assessment.11. Remission of penalties for failure to withhold or to remit employees’ tax
The Commissioner may, if he is satisfied that a failure to withhold or to pay to him employees’ tax was not due to an intent to evade the provisions of this Schedule, waive the payment of the whole or such part as he thinks fit or repay the whole or such part as he thinks fit of any amount referred to in subparagraph (b) of subparagraph (1) of paragraph 10.12. Recovery by employers of employees’ tax not withheld or remitted
(1)Where an employer has failed to withhold an amount of employees’ tax in terms of paragraph 3 and subsequently pays that amount in terms of paragraph 10, he may recover that amount from the employee from whose remuneration that amount should have been withheld.(2)An amount recoverable by an employer in terms of subparagraph (1) shall be a debt due by the employee to the employer and may be recovered from the remuneration liable to employees’ tax payable by the employer in the future in accordance with the direction of the Commissioner.(3)Until such time as an employee pays to his employer any amount which is due to the employer in terms of this paragraph, such employee shall not be entitled to receive from the employer an employees’ tax certificate in respect of that amount.(4)An employer shall not be entitled to recover from an employee any amount referred to in subparagraph (b) of subparagraph (1) of paragraph 10.13. Insolvency of employers
(1)A claim by the Commissioner against an estate of an employer under sequestration for the payment of an amount referred to in subparagraph (a) of subparagraph (1) of paragraph 10 shall have the same priority as is accorded to a claim for any tax due and payable by the insolvent otherwise than in terms of section forty-six.(2)A claim by the Commissioner against an estate of an employer under sequestration for the payment for an amount referred to in subparagraph (b) of subparagraph (1) of paragraph 10 shall have the same priority as is accorded to a claim for any tax due and payable by the insolvent in terms of section forty-six.14. Furnishing of employees’ tax certificates by employer
(1)Subject to paragraphs 10 and 18, every employer who withholds any amount by way of employees’ tax as required by paragraph 3 shall, within the time allowed by subparagraph (3), deliver to each employee or former employee or the trustee of such employee or former employee to whom remuneration has been paid or becomes payable by the employer during the year of assessment in question, an employees’ tax certificate in such form as the Commissioner may prescribe or approve.(2)The employees’ tax certificate shall show the total remuneration of such employee or former employee and the sum of the amounts of employees’ tax withheld by such employer from such remuneration during the said year, excluding any amount of remuneration or employees’ tax included in any other employees’ tax certificate issued by such employer unless such other certificate has been surrendered to such employer by the employee or former employee and has been cancelled by such employer and dealt with by him as provided in subparagraph (9) of paragraph 15.(3)The employees’ tax certificate referred to in subparagraph (1) shall be delivered—(a)if the employer who is required to deliver the certificate has not ceased to be an employer in relation to the employee concerned, within thirty days after the end of the period to which the certificate relates; or(b)if the employer has ceased to be an employer in relation to the employee concerned but has continued to be an employer in relation to other employees, within thirty days of the date on which he has so ceased; or(c)if the employer has ceased to be an employer, within fourteen days of the date on which he has so ceased; or(d)at any other time specified by the Commissioner.(4)A copy of the employees’ tax certificate referred to in subparagraphs (a) and (b) of subparagraph (3) shall be furnished by the employer to the Commissioner within thirty days of the end of the year of assessment in question and a copy of the employees’ tax certificate referred to in subparagraph (c) of subparagraph (3) shall be furnished by the employer to the Commissioner within fourteen days of the date on which the employer ceased to be an employer.(5)For the purposes of subparagraph (3), an employer shall, if the Commissioner having regard to the circumstances of the case so directs, be deemed not to have ceased to be an employer in relation to any of his casual employees who are likely from time to time to be re-employed by such employer.15. Employees’ tax certificate forms
(1)Employees’ tax certificate forms and duplicate employees’ tax certificate forms shall be produced by the employer in such form as the Commissioner may prescribe or approve for general use.(2)In the case of an employer who has a mechanised accounting system the Commissioner may, subject to such conditions as he or she may impose, approve the use by such employer of employee’s tax certificates in a form other than the form prescribed for general use, and if such employer fails to comply with the conditions imposed by the Commissioner, the Commissioner may withdraw his or her consent for the use of such certificates and the employer shall forthwith or from any date specified by the Commissioner cease to use such certificates and shall, within such period as the Commissioner may prescribe comply with any condition which may have been imposed by the Commissioner providing for the surrender to the Commissioner of all unused stocks of such certificates upon the employer so ceased to use such certificates.(3)Subject to subparagraph (4), an employer shall not use for the purpose of furnishing an employee with an employees’ tax certificate or duplicate employees’ tax certificate any form other than the appropriate form supplied to him by the Commissioner.(4)In the case of an employer who has a mechanized accounting system the Commissioner may, subject to such conditions as he may impose, approve the use by such employer of employee’s tax certificates in a form other than the form prescribed for general use and if such employer fails to comply with the conditions imposed by the Commissioner, the Commissioner may withdraw his consent for the use of such certificates and the employer shall forthwith or from any date specified by the Commissioner cease to use such certificates and shall, within such period as the Commissioner may prescribe comply with any condition which may have been imposed by the Commissioner providing for the surrender to the Commissioner of all unused stocks of such certificates upon the employer so ceased to use such certificates.(5)An employer may, at the request of the employee or former employee, issue a duplicate employees’ tax certificate but any such duplicate shall be clearly marked as such and shall disclose full details of the original certificate.(6)Unless authorized thereto by the Commissioner, no duplicate employees’ tax certificate may be issued by an employer otherwise than as provided in subparagraph (5).(7)Every person who ceases to be an employer shall, unless the Commissioner otherwise directs, within fourteen days of so ceasing, surrender to the Commissioner all unused employees’ tax certificate form and duplicate employees’ tax certificate forms supplied for the purposes of performing his duties as an employer under this Part.(8)For the purposes of this Schedule, any employees’ tax certificate on which appears the name or any trade name of any employer shall, until the contrary is proved, be deemed to have been issued by such employer if such certificate is in a form prescribed by the Commissioner for general use and was supplied by the Commissioner to such employer for use by him or is in a form approved by the Commissioner under subparagraph (4) for use by such employer.(9)An employer shall not destroy but shall, until the Commissioner requires it to be surrendered to him, retain—(a)in the case of a completed employees’ tax certificate, any such certificate or copy thereof which has not been furnished to the Commissioner or an employee or former employee in terms of this Schedule; and(b)any cancelled or spoiled employees’ tax certificate and any copy thereof;Provided that if at the expiry of six years from the end of the year of assessment in which any such certificate was completed, cancelled or spoiled, as the case may be, the Commissioner has not required it to be surrendered to him, the employer may destroy any such certificate and any such copy.Part III – Rights and duties of employees
16. Statements to be furnished by employees
(1)Subject to subparagraph (2), every individual who becomes an employee shall, within seven days after he becomes an employee, furnish his employer with a tax code declaration in such form and in such manner as may be prescribed, and every individual who is an employee shall furnish a fresh declaration within seven days after the date on which any change in the particulars previously furnished, whether under this Act or the previous law, occurs or, if he falls within the terms of the public notice referred to in subparagraph (3), within seven days after the date of publication in the Gazette of such notice:Provided that until a fresh declaration is received or a directive is received from the Commissioner in terms of subparagraph (2) of paragraph 20 the employer shall regard the latest declaration submitted to him by the employee concerned as correct and shall continue to determine the amounts to be withheld by way of employees’ tax in accordance with the particulars disclosed therein.(2)If for any reason an employee does not wish to furnish the declaration referred to in subparagraph (1), he may instead apply to the Commissioner in such form as may be prescribed for the issue of a directive to his employer and in such case the Commissioner may issue a directive to the employer as provided in subparagraph (2) of paragraph 20.(3)Subject to subparagraph (2) and notwithstanding any tax code declaration furnished in terms of subparagraph (1), the Commissioner may, by notice in the Gazette, require every person who falls within a classification specified in that notice to furnish his employer with a fresh declaration within seven days after the date of publication of that notice.17. Employees to furnish employees’ tax certificate to the commissioner
(1)An employees’ tax certificate furnished in terms of paragraph 14 shall be forwarded with any return for assessment required to be furnished by or on behalf of the employee in terms of Part V of this Act:(2)No employees’ tax withheld from the remuneration paid or payable to an employee in respect of any year of assessment shall be credited in terms of subparagraph (1) of paragraph 18 in payment of any tax payable by the employee in respect of that year unless an employees’ tax certificate or a duplicate employees’ tax certificate is forwarded to the Commissioner.(3)It shall be the duty of any employee or former employee who has not received an employee’s tax certificate within the time allowed by paragraph 14 forthwith to apply to the employer for such certificate.Part IV – General Provisions
18. Crediting of employees’ tax
(1)On the determination of the income tax payable by an employee in respect of any year of assessment—(a)the Commissioner shall—(i)credit the amount of the employees’ tax which is shown in the employees’ tax certificate or in the duplicate employees’ tax certificate as withheld in payment successively of—(A)the income tax payable by the employee in respect of that year; and(B)any other tax or amount due and payable to the Commissioner by the employee;(ii)if the employee’s tax withheld exceeds the amount of the employee’s liability for income tax by five United States cents or more, refund the whole of such excess to the employee;(b)if the amount of the employee’s liability for income tax exceeds by five United States cents or more the sum of employees’ tax withheld, the whole of such excess shall be payable by the employee to the Commissioner.(2)The burden of proof that any amount of employees’ tax has been withheld by his employer shall be upon the employee and any employees’ tax certificate shall be prima facie evidence that the amount of employees’ tax reflected therein has been withheld by the employer.(3)If the Commissioner is satisfied that the amount or any portion of the amount of employees’ tax shown in any employees’ tax certificate has not been withheld by the employer and the amount of the employees’ tax shown in the employees’ tax certificate has been applied as provided in subparagraph (1), the employer and the employee shall be jointly and severally liable to pay to the Commissioner the amount which should not have been so applied and such amount shall be recoverable under this Act as if it were a tax.(4)An employer who has under subparagraph (3) paid to the Commissioner an amount which has, but should not have been, applied under subparagraph (1), may, if the amount was shown or included in the certificate because of a bona fide error, recover the amount so paid from the employee concerned, and in that case subparagraph (2) of paragraph 12 shall apply, mutatis mutandis.(5)No employees’ tax certificate shall be issued by the employer in respect of any amount recovered by him from the employee in terms of subparagraph (4), nor shall any such amount be included in any return rendered in terms of subparagraph (2) of paragraph 4.(6)If the Commissioner is satisfied that the employee to whom an employees’ tax certificate refers was directly or indirectly responsible for an incorrect amount being shown in such certificate, he shall absolve the employer from the liability imposed upon him by subparagraph (3), and in that case the employee shall be solely liable under that subparagraph.19. Refunds
No refund of any amount of employees’ tax shall be made to the taxpayer concerned otherwise than as provided in paragraph 18.20. Directives of the Commissioner
(1)In giving a directive or prescribing any person, matter or thing for the purposes of this Schedule the Commissioner may make different provision for different classes of employers, employees and other persons and for different classes of remuneration.(2)In order to alleviate hardship to an employee due to illness or other circumstances or to correct any error in regard to the calculation of employees’ tax, whether arising from the furnishing to an employer by an employee of a false or incorrect tax code declaration or otherwise, or where the employee has, in terms of subparagraph (2) of paragraph 16, applied to the Commissioner for the issue of a directive to his employer to enable the employer to withhold the correct amount by way of employees’ tax, the Commissioner may, having regard to the circumstances of the case, issue a directive to the employer concerned authorizing the employer to refrain from withholding any amount under paragraph 3 by way of employees’ tax from any remuneration due to the employee or to withhold by way of employees’ tax a specified amount or an amount to be determined in accordance with a specified rate or scale, and the employer shall comply with such directive.20A. Directives regarding final deduction system
(1)The Commissioner may direct any employer to withhold employees’ tax from the remuneration of his employees in such a way as to ensure that the amount withheld in any year of assessment is as nearly as possible the same as the income tax payable by the employees concerned for that year of assessment.(2)A directive in terms of subparagraph (1) may provide for—(a)adjustments of the amount of employees’ tax to be withheld from the remuneration of any employees to take account of—(i)any credits referred to in paragraph (c) of section seven to which the employees may be entitled; and(ii)any circumstances of the employees, including any additional income accruing to them, which affects their liability to income tax;and(iii)any alteration of the level of taxable income of employees, the rates of income tax with which employees are chargeable and the credits to which employees may be entitled, made by the charging Act during the year of assessment;(b)refunds by the employer of amounts withheld by way of employees’ tax;(c)information to be furnished to the employer by his employees in regard to their liability for income tax.(3)Directives in terms of subparagraph (1) shall have effect notwithstanding any other provision of this Schedule.(4)An employer to whom a directive has been issued in terms of subparagraph (1) shall ensure that a document setting out the terms of the directive is available for inspection at all reasonable times by any employee who may be affected by it.(5)The Commissioner shall not be liable to make any refund of income tax overpaid on account of any failure by an employer to make an appropriate adjustment of the amounts of employees’ tax to be withheld or refunded in accordance with a directive issued in terms of subparagraph (1).21. Application of this Schedule to remuneration payable by the State
This Schedule shall, subject to such modifications and exceptions as the Commissioner may direct or prescribe, apply in relation to remuneration liable to employees’ tax paid by the State and any individual to whom it is paid and to any officer responsible for its payment as if that officer were a person liable to pay remuneration or any employer, as the case may be.22. Offences and penalties
(1)Any person who—(a)pays or becomes liable to pay any amount by way of remuneration and who fails to withhold therefrom any amount of employees’ tax or to pay such amount to the Commissioner as is provided in paragraph 3; or(b)uses or applies any amount withheld by him by way of employees’ tax for purposes other than the payment of such amount to the Commissioner; or(c)makes or issues or causes or allows to be made or issued or knowingly possesses or uses or causes or allows to be used any employees’ tax certificate which is false; or(d)without just cause shown by him, fails to comply with any directive issued to him by the Commissioner in terms of subparagraph (2) of paragraph 20; or(e)furnishes to his employer or to the Commissioner a false or misleading tax code declaration or gives any false information or misleads his employer in relation to any matter affecting the amount of employees’ tax to be withheld in his case; or(f)fails or neglects to deliver to any employee or former employee an employees’ tax certificate as required by paragraph 14; or(g)fails to comply with any condition imposed by the Commissioner in terms of paragraph 15 in regard to the manner in which employees’ tax certificates or duplicate employees’ tax certificates may be used or as to the surrender of unused stocks of such certificates or to account for used, unused or spoiled certificates when required by the Commissioner under that paragraph or on ceasing to be an employer fails to surrender unused certificates in his possession as required by that paragraph; or(h)fails or neglects to maintain any record as required by paragraph 4 or to retain such record for a period of six years from the date of the last entry therein or to furnish to the Commissioner any return or any copy of any employees’ tax certificate as required by that paragraph; or(i)fails or neglects to apply to the Commissioner for registration as an employer as required by subparagraph (1) of paragraph 2 or, having so applied, fails or neglects to notify the Commissioner of any change of his address or of the fact of his having ceased to be an employer as required by subparagraph (2) of that paragraph; or(j)alters any employees’ tax certificate made or issued by any other person or falsely pretends to be the employee named in any employees’ tax certificate or, for his own advantage or benefit, obtains credit with respect to or payment of the whole or any part of any amount of employees’ tax withheld from remuneration paid or payable to another person; or(k)not being an employer and without being duly authorized by any person who is an employer, issues or causes to be issued any document purporting to be an employees’ tax certificate;shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.(2)For the purposes of subparagraph (b) of subparagraph (1), an amount which has been withheld by any person from remuneration shall, until the contrary is proved, be deemed to have been used or applied by such person for purposes other than the payment of such amount to the Commissioner if such amount is not paid to the Commissioner within the period allowed for payment under paragraph 3.23. Increased penalty on subsequent conviction
(1)In this section—“public entity” means—(a)any corporate body established by or in terms of any Act for special purposes;(b)any company in which the State has a controlling interest, whether by virtue of holding or controlling shares therein or by virtue of a right of appointment of members to the controlling body thereof or otherwise, and includes any company which is a subsidiary, as determined in accordance with section 143 of the Companies Act , of such a body;(d)any partnership or joint venture between the State and any person and which is prescribed by the Minister for the purposes of the application of this Act to be a partnership or joint venture.(2)Where—(a)in terms of paragraph 10(3) the Commissioner makes an assessment in which the amount of employees’ tax for which an employer is personally liable by virtue of paragraph 10(1) is estimated (whether that assessment is made before or after the date of commencement of the Finance (No. 2) Act, 2014); and(b)the employer concerned is—(ii)any body or association of persons, whether incorporated or unincorporated, the majority of whose members are employees of the State who contribute to the funds of such body or association by means of deductions from their remuneration made by the State as their employer on behalf of such body or association;and(c)the public entity or body or association referred to in paragraph (b)—(i)fails, as an employer, to withhold an amount of employees’ tax in terms of paragraph 3 and subsequently pays that amount in terms of paragraph 10; and(ii)having paid that amount in terms of paragraph 10 fails subsequently to recover that amount in terms of paragraph 12 from the employee from whose remuneration that amount should have been withheld;the Commissioner shall be deemed to be the employer instead of the public entity or body or association referred to in paragraph (b) and —(d)may recover that amount from the employee from whose remuneration that amount should have been withheld; and(e)shall, for the purposes of subparagraph (d), have all the rights and powers that he or she has under this Act for recovering outstanding tax.(3)Notwithstanding subparagraph (b) of the definition of “remuneration “in paragraph 1(1), if a public entity or body or association referred to in subparagraph (2)(b)—(a)fails, as a payer, to withhold an amount of tax on non-executive directors’ fees in accordance with the Thirty-Third Schedule; and(b)subsequently purports to pay that amount in terms of paragraph 10 as if the non-executive director’s fees in question was “remuneration” for the purposes of this Schedule;the non-executive director’s fees in question shall be deemed to be “remuneration” and the director to whom such fees were paid shall be deemed to be an “employee” for the purposes of this Schedule.(4)Accordingly, where a public entity or body or association referred to in subparagraph (2) fails subsequently to recover from the director from whose nonexecutive directors’ fees an amount of tax on nonexecutive director’s fees should have been withheld, subsection (2) shall apply as if the Commissioner is the employer and the amount in question is an amount of employees’ tax.Fourteenth Schedule (Section 15(2) (dd))
Deductions in respect of income derived from business operations in growth point areas
Fifteenth Schedule (Section 28)
Resident shareholders’ tax
1. Interpretation
(1)In this Schedule—“company” means any company which is ordinarily resident in Zimbabwe;“company limited by shares” means a company incorporated in Zimbabwe which is not a company limited by guarantee as described in paragraph (b) of section 7 of the Companies Act ;“dividend” means any amount which is distributed by a company to its shareholders, but excluding—(a)any amount so distributed by a building society which is not distributed as a dividend in respect of—(i)in the case of the Central African Building Society, a paid-up permanent share —class “A”; and(ii)in the case of the Founders Building Society, an ordinary permanent fully paid-up share; and(iii)in the case of the Beverly Building Society, a foundation fully paid-up share or class “A” shareand(c)any amount so distributed which, in the opinion of the Commissioner, is a return of the amount received by the company for its shares; and(d)any amount so distributed by the Industrial Development Corporation of Zimbabwe Limited, in respect of its issued share capital; and(e)any amount so distributed to the Development Trust of Zimbabwe, a body corporate established by notarial deed of trust on the 12th June, 1989; and(f)any amount so distributed by a licensed investor having a qualifying degree of export-orientation which arises from its operations in a special economic zone; and(g)any amount so distributed which in the opinion of the Commissioner, is a return of an amount contributed to the capital of a private business corporation by a member;(h)any amount so distributed by an industrial park developer which arises from the operation of his industrial park;(i)any amount deemed under this Act to be a dividend by virtue of the company in question exceeding the prescribed debt to equity ratio, if the company is one that the Minister certifies in writing has advanced loans for the benefit of the State;less any income tax which has been deducted from such amount in terms of section twenty-five; “nominee” means a person who holds the shares on which a dividend is paid directly or indirectly on behalf of another person;“person”, in addition to the meaning given to the term in section two, includes, in relation to income the subject of a trust to which a beneficiary is entitled, the trust;“shareholder” includes a member of a private business corporation.(2)For the purpose of this Schedule, a dividend shall be deemed to be distributed when it is paid to the shareholder, credited to his account or so dealt with that he becomes entitled to it, whichever occurs first.(3)For the purposes of this Schedule, a company shall be deemed to be ordinarily resident in the state or territory in which its central management and control is situated.2. Companies to withhold the tax
(1)Every company which distributes a dividend to—(a)a person, other than a statutory corporation, a company limited by shares, a private business corporation, a pension fund, a benefit fund or a medical aid society, who is ordinarily resident in Zimbabwe; or(b)a partnership which is ordinarily resident in Zimbabwe;shall withhold resident shareholders’ tax from that dividend and shall pay the amount withheld to the Commissioner within ten days of the date of distribution or within such further time as the Commissioner may for good cause allow.(2)The resident shareholders’ tax shall be withheld in terms of subparagraph (1) notwithstanding any objection that may be lodged to any decision made by the Commissioner in terms of the definition of “dividend” in subparagraph (1) of paragraph 1.(3)Where resident shareholders’ tax is withheld in terms of subparagraph (1), the company shall provide the shareholder with a certificate, in the form approved by the Commissioner, showing—(a)the gross amount of the dividend; and(b)the amount, if any, of income tax deducted in terms of section twenty-five; and(c)the amount of the resident shareholders’ tax withheld.(4)Any company which fails to provide a shareholder with a certificate in terms of subparagraph (3), or furnishes an incorrect certificate under that subparagraph, shall be guilty of an offence and liable to a fine not exceeding level five or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment:Provided that, if it is proved that the company’s conduct was wilful, it shall be liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.2A. Payment of tax where dividend deemed to have been paid in terms of section 28(2)
Where a dividend is deemed to have been paid in terms of subsection (2) of section twenty-eight, the company which is deemed to have paid the dividend shall pay resident shareholders’ tax for that deemed dividend in accordance with the provisions on self-assessment as provided for in section 37A.3. Nominees to withhold the tax not deducted by company
(1)Every nominee who receives on behalf of a shareholder who is—(a)a person, other than a statutory corporation, a company limited by shares, a pension fund, a benefit fund or a medical aid society, who is ordinarily resident in Zimbabwe; or(b)a partnership which is ordinarily resident in Zimbabwe;a dividend from which resident shareholders’ tax has not been withheld by the company distributing the dividend, shall withhold resident shareholders’ tax from that dividend and shall pay the amount withheld to the Commissioner within ten days of receipt of that dividend.(2)Where resident shareholders’ tax is withheld in terms of subparagraph (1), the nominee shall provide the shareholder with a certificate, in the form approved by the Commissioner, showing—(a)the gross amount of the dividend; and(b)the amount, if any, of income tax deducted in terms of section twenty-five; and(c)the amount of the resident shareholders’ tax withheld.(3)Any nominee who fails to provide a shareholder with a certificate in terms of subparagraph (2), or furnishes an incorrect certificate under that subparagraph, shall be guilty of an offence and liable to a fine not exceeding level five or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment:Provided that, if it is proved that the nominee’s conduct was wilful, he shall be liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and4. Shareholders to pay the tax not withheld by company or nominee
A shareholder to whom a dividend has been distributed from which resident shareholders’ tax has not been withheld in terms of paragraph 2 or 3 or recovered in terms of section seventy-seven shall pay to the Commissioner within ten days of the date of distribution of the dividend the tax that should have been withheld.5. Returns to be furnished
Payment of the resident shareholders’ tax by a company or nominee shall be accompanied by a return in the form prescribed.6. Penalty for non-payment of the tax
(1)Subject to subparagraph (2), a company or a nominee in Zimbabwe who fails to withhold or to pay to the Commissioner any amount of resident shareholders’ tax as provided in paragraph 2 or 3 shall be personally liable for the payment to the Commissioner, not later than the date on which payment should have been made in terms of paragraph 2 or 3, as the case may be, of—(a)the amount of resident shareholders’ tax which the company or nominee, as the case may be, failed to pay to the Commissioner; and(b)a further amount equal to one hundred per centum of such resident shareholders’ tax.(2)The Commissioner, if he is satisfied in any particular case that the failure to pay to him resident shareholders’ tax was not due to any intent to evade the provisions of this Schedule, may waive the payment of the whole or such part as he thinks fit or repay the whole or such part as he thinks fit of the amount referred to in subparagraph (b) of subparagraph (1).(3)If a defaulting company or nominee referred to in subparagraph (1) does not pay the penalty in full on the date on which the default has ceased, interest, calculated at a rate to be fixed by the Minister by statutory instrument, shall be payable on so much of the penalty as remains unpaid by the company or nominee during the period beginning on the date the default has ceased and ending on the date the penalty is paid in full, and such interest shall be recoverable by the Commissioner by action in any court of competent jurisdiction:Provided that in special circumstances the Commissioner may extend the time for payment of the penalty without charging interest.7. Refund of the tax
(1)If it is proved to the satisfaction of the Commissioner that any person has been charged with resident shareholders’ tax—(a)in excess of the amount properly chargeable in terms of this Schedule; or(b)in respect of any dividend which has subsequently been rescinded with the approval of the Minister in order to comply with any conditions attaching to the payment of any dividend outside Zimbabwe in terms of the law relating to exchange control;the Commissioner shall authorize a refund in so far as it has been overpaid or is in respect of any such dividend.(2)If it is proved to the satisfaction of the Commissioner that the taxable income of any shareholder who is an individual and who had attained the age of fifty-five years prior to the commencement of the year of assessment, when aggregated with any dividends distributed to him and any interest as defined in the Twenty-First Schedule paid to him during the year of assessment—(a)does not exceed six hundred United States dollars; or(b)exceeds six hundred United States dollars but does not exceed seven hundred and twenty United States dollars; or(c)exceeds seven hundred and twenty United States dollars but does not exceed eight hundred and forty United States dollars; or(d)exceeds eight hundred and forty United States dollars but does not exceed nine hundred and sixty United States dollars;the Commissioner shall authorize a refund of a percentage of resident shareholders’ tax withheld or paid, as follows—(i)in the case of an aggregate amount referred to in subparagraph (a), one hundred per centum;(ii)in the case of an aggregate amount referred to in subparagraph (b), seventy-five per centum;(iii)in the case of an aggregate amount referred to in subparagraph (c), fifty per centum;(iv)in the case of an aggregate amount referred to in subparagraph (d), twenty-five per centum:Provided that, if the period of assessment is less than twelve months, the amounts specified in subparagraphs (a), (b), (c) and (d) shall be reduced proportionately.(3)If it is proved to the satisfaction of the Commissioner that the taxable income of any shareholder who is an individual and who had not attained the age of fifty-five years prior to the commencement of the year of assessment, when aggregated with any dividends distributed to him and any interest as defined in the Twenty-First Schedule paid to him during the year of assessment—(a)does not exceed four hundred and eighty United States dollars; or(b)exceeds four hundred and eighty United States dollars but does not exceed six hundred United States dollars; or(c)exceeds six hundred United States but does not exceed seven hundred and twenty United States dollars; or(d)exceeds seven hundred and twenty United States dollars but does not exceed eight hundred and forty United States dollars;the Commissioner shall authorize a refund of a percentage of resident shareholders’ tax withheld or paid, as follows—(i)in the case of an aggregate amount referred to in subparagraph (a), one hundred per centum;(ii)in the case of an aggregate amount referred to in subparagraph (b), seventy-five per centum;(iii)in the case of an aggregate amount referred to in subparagraph (c), fifty per centum;(iv)in the case of an aggregate amount referred to in subparagraph (d), twenty-five per centum:Provided that, if the period of assessment is less than twelve months, the amounts specified in subparagraphs (a), (b), (c) and (d) shall be reduced proportionately.(4)The Commissioner shall not authorize any refund in terms of this paragraph unless the claim therefor is made within six years of the date of payment of the tax.Sixteenth Schedule (Sections 29 and 94)
Seventeenth Schedule (Sections 30 and 95)
Non-residents’ tax on fees
1. Interpretation
(1)In this Schedule, subject to subparagraph (2)—“export market services” means services rendered wholly or exclusively for the purpose of seeking and exploiting opportunities for the export of goods from Zimbabwe or of creating, sustaining or increasing the demand for such exports and, without derogation from the generality of the foregoing, includes any of the following services—(a)research into, or the obtaining of information relating to, markets outside Zimbabwe;(b)research into the packaging or presentation of goods for sale outside Zimbabwe;(c)advertising goods outside Zimbabwe or otherwise securing publicity outside Zimbabwe for goods;(d)soliciting business outside Zimbabwe;(e)investigating or preparing information, designs, estimates or other material for the purpose of submitting tenders for the sale or supply of goods outside Zimbabwe;(f)bringing prospective buyers to Zimbabwe from outside Zimbabwe;(g)providing samples of goods to persons outside Zimbabwe;“fees” means any amount from a source within Zimbabwe payable in respect of any services of a technical, managerial, administrative or consultative nature, but does not include any such amount payable in respect of—(a)services rendered to an individual unconnected with his business affairs; or(b)services rendered by any person in his capacity as an employee, other than a director, of the payer; or(c)education or technical training; or(d)the repair of goods outside Zimbabwe; or(e)any project which is specified for the purposes of this subparagraph by the Minister by notice in a statutory instrument; or(f)any project which is the subject of any agreement entered into by the Government of Zimbabwe with any other government or international organization in terms of which any person is entitled to exemption from tax in respect of such amount; or(g)services rendered to a licensed investor in respect of its operations in a special economic zone;(h)export market services rendered by an agent of a company that exports goods from Zimbabwe:Provided, however, that the fees payable to the agent must not exceed five per centum of the “free on board value” (as that phrase is defined in the Customs and Excise Act of the exports of the company for the year of assessment concerned, as confirmed on acquittance by the company of the export documentation relating to its exports in that year;(i)services rendered to an industrial park developer in respect of the operation of his industrial park;(j)non-executive fees subject to tax in terms of the Thirty-Third Schedule.“foreign company” means a body corporate that is incorporated in a state or territory other than Zimbabwe under the laws of that state or territory;“non-resident person” means—(a)a person, other than a company, who; or(b)a partnership or foreign company which; is not ordinarily resident in Zimbabwe;“payee” means a non-resident person to whom fees are payable or paid;“payer” means any person who or partnership which pays or is responsible for the payment of fees, including the State or a statutory corporation or any person who or partnership which pays or is responsible for the payment of fees for or on behalf of the State or any statutory corporation.(2)For the purposes of this Schedule—(a)fees shall be deemed to be from a source within Zimbabwe if the payer is a person who or partnership which is ordinarily resident in Zimbabwe;(b)in determining whether or not non-residents’ tax on fees should be withheld, the question as to whether or not—(i)the payer is a person or partnership ordinarily resident in Zimbabwe; or(ii)the payee is a non-resident person;shall be decided by reference to the date on which the fees are paid by the payer;(c)fees shall be deemed to be paid to the payee if they are credited to his account or so dealt with that the conditions under which he is entitled to them are fulfilled, whichever occurs first;(d)a partnership shall—(i)in relation to fees for services rendered by such partnership in the carrying on of any trade in Zimbabwe, be deemed to be ordinarily resident in Zimbabwe if at least one member of such partnership is ordinarily resident in Zimbabwe;(ii)in relation to fees payable to a non-resident person, be deemed to be ordinarily resident in Zimbabwe if at least one member of such partnership is ordinarily resident in Zimbabwe.2. Payers to withhold tax
(1)Every payer of fees to a non-resident person shall withhold non-residents’ tax on fees from those fees and shall pay the amount withheld to the Commissioner within ten days of the date of payment or within such further time as the Commissioner may for good cause allow.(2)Where non-residents’ tax on fees is withheld in terms of subparagraph (1), the payer shall provide the payee with a certificate, in a form approved by the Commissioner, showing—(a)the amount of the fees; and(b)the amount of the non-residents’ tax on fees withheld.Agents to withhold tax not deducted by payer
(3)Any payer who fails to provide a payee with a certificate in terms of subparagraph (2), or furnishes an incorrect certificate under that subparagraph, shall be guilty of an offence and liable to a fine not exceeding level five or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment:Provided that, if it is proved that the payer’s conduct was wilful, he shall be liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.3.
(1)Every agent who receives on behalf of a payee fees from which non-residents’ tax on fees has not been withheld by the payer, shall withhold non-residents’ tax on fees from those fees and shall pay the amount withheld to the Commissioner within ten days of the date of the receipt of the fees.(2)Where non-residents’ tax on fees is withheld in terms of subparagraph (1), the agent shall provide the payee with a certificate in a form approved by the Commissioner, showing—(a)the name of the payer; and(b)the amount of the fees; and(c)the amount of non-residents’ tax on fees withheld.(2a)Any agent who fails to provide a payee with a certificate in terms of subparagraph (2), or furnishes an incorrect certificate under that subparagraph, shall be guilty of an offence and liable to a fine not exceeding level five or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment:Provided that, if it is proved that the payer’s conduct was wilful, he shall be liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.(3)For the purposes of this paragraph, a person shall be deemed to be the agent of a payee and to have received fees on behalf of that payee if—(a)that person’s address appears in the payer’s records as the address of the payee; and(b)the warrant or cheque in payment of the fees is delivered at that person’s address.(4)Any person deemed to be the agent of a payee in terms of subparagraph (3) shall, as regards the payee and in respect of any income received by or accruing to or in favour of the payee, have and exercise all the powers, duties and responsibilities of an agent for a taxpayer absent from Zimbabwe.4. Payee to pay tax not withheld by payer or agent
A payee to whom fees have been paid from which non-residents’ tax on fees has not been withheld in terms of paragraph 2 or 3 or recovered in terms of section seventy-seven shall pay to the Commissioner within ten days of the date of payment of the fees the tax that should have been withheld.5. Returns to be furnished
Payment of the non-residents’ tax on fees by a payer or an agent shall be accompanied by a return in the form prescribed.6. Penalty for non-payment of tax
Subject to subparagraph (2), a payer or an agent in Zimbabwe who fails to withhold or pay to the Commissioner any amount of non-residents’ tax on fees as provided in paragraph 2 or 3 shall be personally liable for the payment to the Commissioner, not later than the date on which payment should have been made in terms of paragraph 2 or 3, as the case may be, of—(a)the amount of non-residents’ tax on fees which the payer or the agent, as the case may be, failed to pay to the Commissioner; and(b)a further amount equal to one hundred per centum of such non-residents’ tax on fees.(2)The Commissioner, if he is satisfied in any particular case that the failure to pay to him non-residents’ tax on fees was not due to any intent to evade the provisions of this Schedule, may waive the payment of the whole or such part as he thinks fit or repay the whole or such part as he thinks fit of the amount referred to in subparagraph (b) of subparagraph (1).7. Refund of tax on fees
If it is proved to the satisfaction of the Commissioner that any person or partnership has been charged with non-residents’ tax on fees in excess of the amount properly chargeable in terms of this Schedule, the Commissioner shall authorize a refund in so far as it has been overpaid:Provided that the Commissioner shall not authorize any refund in terms of this paragraph unless the claim therefor is made within six years of the date of payment of such tax.Eighteenth Schedule (Section 31)
Non-residents’ tax on remittances
1. Interpretation
(1)In this Schedule, subject to subparagraph (2)—“allocable expenditure” means expenditure of a technical, managerial, administrative or consultative nature incurred outside Zimbabwe by a non-resident person in connection with or allocable to the carrying on by him of any trade within Zimbabwe;“non-resident person” means a person who, or partnership which, is not ordinarily resident in Zimbabwe, but does not include a licensed investor;“remittance” means the transfer of any amount from Zimbabwe to another country.(2)For the purpose of this Schedule, in determining whether or not non-residents’ tax on remittances should be paid, the question as to whether or not a person or a partnership is a non-resident person shall be decided by reference to the date on which the remittance is effected by such person or partnership.2. Non-resident persons to pay tax
Any non-resident person who effects any remittance in respect of allocable expenditure shall in relation to such remittance pay non-residents’ tax on remittances to the Commissioner within ten days of the date of remittance or within such further time as the Commissioner may for good cause allow.3. Returns to be furnished
Payment of non-residents’ tax on remittances by a non-resident person shall be accompanied by a return in the form prescribed.4. Penalty for non-payment of tax
(1)Subject to the provisions of subparagraph (2), a non-resident person who fails to pay to the Commissioner any amount of non-residents’ tax on remittances as provided in paragraph 2 shall be liable for the payment to the Commissioner of a further amount equal to one hundred per centum of such nonresidents’ tax on remittances.(2)The Commissioner, if he is satisfied in any particular case that the failure to pay to him non-residents’ tax on remittances was not due to any intent to evade the provisions of this Schedule, may waive the payment of the whole or such part as he thinks fit or repay the whole or such part as he thinks fit of the amount referred to in subparagraph (1).5. Refund of tax on remittances
If it is proved to the satisfaction of the Commissioner that any non-resident person has paid nonresidents’ tax on remittances in excess of the amount properly payable in terms of this Schedule, the Commissioner shall authorize a refund in so far as it has been overpaid:Provided that the Commissioner shall not authorize any refund in terms of this paragraph unless the claim therefor is made within six years of the date of payment of such tax.Nineteenth Schedule (Sections 32 and 96)
Non-residents’ tax on royalties
1. Interpretation
(1)In this Schedule, subject to subparagraph (2)—“foreign company” means a body corporate that is incorporated in a state or territory other than Zimbabwe under the law of that state or territory;“non-resident person” means—(a)a person, other than a company, who; or(b)a partnership or foreign company which;is not ordinarily resident in Zimbabwe, but does not include a person, partnership or foreign company that is a licensed investor having a qualifying degree of export-orientation;is not ordinarily resident in Zimbabwe;“payee” means a non-resident person to whom royalties are payable or paid;“payer” means any person who or partnership which pays or is responsible for the payment of royalties, including the State or a statutory corporation or any person who pays or is responsible for the payment of royalties for or on behalf of the State or any statutory corporation, but not including a licensed investor or any person acting on his behalf;“royalties” means any amount from a source within Zimbabwe payable as a consideration for the use of, or the right to use, any literary, dramatic, musical, artistic, scientific or other work whatsoever (including cinematograph films or recordings) in which any copyright exists, any patented article, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience, but does not include any such amount payable in respect of—(a)any project which is specified for the purposes of this subparagraph by the Minister of notice in a statutory instrument; or(b)any project which is the subject of any agreement entered into by the Government of Zimbabwe with any other government or international organization in terms of which any person is entitled to exemption from tax in respect of such amount;“use”, in relation to any work in which any copyright exists or any patented article, means the doing of any thing which would infringe the copyright or patent concerned if it were done without the permission or authority of the holder of the copyright or patent or his agent or assignee.(2)For the purposes of this Schedule—(a)royalties shall be deemed to be from a source within Zimbabwe if—(i)the payer is a person who or a partnership which is ordinarily resident in Zimbabwe; or(ii)they are payable by virtue of the use in Zimbabwe or the grant of permission to use in Zimbabwe any property referred to in the definition of “royalties” in subsection (1);(b)in determining whether or not non-residents’ tax on royalties should be withheld, the question as to whether or not—(i)the payer is a person or partnership ordinarily resident in Zimbabwe; or(ii)the payee is a non-resident person;shall be decided by reference to the date on which the royalties are paid by the payer;(c)royalties shall be deemed to be paid to the payee if they are credited to his account or so dealt with that the conditions under which he is entitled to them are fulfilled, whichever occurs first;(d)a partnership shall—(i)in relation to royalties payable to such partnership in the carrying on by it of any trade in Zimbabwe, be deemed to be ordinarily resident in Zimbabwe if at least one member of such partnership is ordinarily resident in Zimbabwe;(ii)in relation to royalties payable to a non-resident person, be deemed to be ordinarily resident in Zimbabwe if at least one member of such partnership is ordinarily resident in Zimbabwe.2. Payers to withhold tax
(1)Every payer of royalties to a non-resident person shall withhold non-residents’ tax on royalties from those royalties and shall pay the amount withheld to the Commissioner within ten days of the date of payment or within such further time as the Commissioner may for good cause allow.(2)Where non-residents’ tax on royalties is withheld in terms of subparagraph (1), the payer shall provide the payee with a certificate, in a form approved by the Commissioner, showing—(a)the amount of the royalties; and(b)the amount of the non-residents’ tax on royalties withheld.(3)Any payer who fails to provide a payee with a certificate in terms of subparagraph (2), or furnishes an incorrect certificate under that subparagraph, shall be guilty of an offence and liable to a fine not exceeding level five or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment:Provided that, if it is proved that the payer’s conduct was wilful, he shall be liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.3. Agents to withhold tax not deducted by payer
(1)Every agent who receives on behalf of a payee royalties from which non-residents’ tax on royalties has not been withheld by the payer, shall withhold non-residents’ tax on royalties from those royalties and shall pay the amount withheld to the Commissioner within ten days of the date of receipt of the royalties.(2)Where non-residents’ tax on royalties is withheld in terms of subparagraph (1), the agent shall provide the payee with a certificate, in a form approved by the Commissioner, showing—(a)the name of the payer; and(b)the amount of the royalties; and(c)the amount of the non-residents’ tax on royalties withheld.(2a)Any agent who fails to provide a payee with a certificate in terms of subparagraph (2), or furnishes an incorrect certificate under that subparagraph, shall be guilty of an offence and liable to a fine not exceeding level five or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment:Provided that, if it is proved that the agent’s conduct was wilful, he shall be liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.(3)For the purposes of this paragraph, a person shall be deemed to be the agent of a payee and to have received royalties on behalf of that payee if—(a)that person’s address appears in the payer’s records as the address of the payee; and(b)the warrant or cheque in payment of the royalties is delivered at that person’s address.(4)Any person deemed to be the agent of a payee in terms of subparagraph (3) shall, as regards the payee and in respect of any income received by or accruing to or in favour of the payee, have and exercise all the powers, duties and responsibilities of an agent for a taxpayer absent from Zimbabwe.4. Payee to pay tax not withheld by payer or agent
A payee to whom royalties have been paid from which non-residents’ tax on royalties has not been withheld in terms of paragraph 2 or 3 or recovered in terms of section seventy-seven shall pay to the Commissioner within ten days of the date of payment of the royalties the tax that should have been withheld.5. Returns to be furnished
Payment of the non-residents’ tax on royalties by a payer or an agent shall be accompanied by a return in the form prescribed.6. Penalty for non-payment of tax
(1)Subject to subparagraph (2), a payer or an agent in Zimbabwe who fails to withhold or pay to the Commissioner any amount of non-residents’ tax on royalties as provided in paragraph 2 or 3 shall be personally liable for the payment to the Commissioner, not later than the date on which payment should have been made in terms of paragraph 2 or 3, as the case may be, of—(a)the amount of non-residents’ tax on royalties which the payer or the agent, as the case may be, failed to pay to the Commissioner; and(b)a further amount equal to one hundred per centum of such non-residents’ tax on royalties.(2)The Commissioner, if he is satisfied in any particular case that the failure to pay to him non-residents’ tax on royalties was not due to any intent to evade the provisions of this Schedule, may waive the payment of the whole or such part as he thinks fit or repay the whole or such part as he thinks fit of the amount referred to in subparagraph (b) of subparagraph (1).7. Refund of tax on royalties
If it is proved to the satisfaction of the Commissioner that any person or partnership has been charged with non-residents’ tax on royalties in excess of the amount properly chargeable in terms of this Schedule, the Commissioner shall authorize a refund in so far as it has been overpaid:Provided that the Commissioner shall not authorize any refund in terms of this paragraph unless the claim therefor is made within six years of the date of payment of such tax.Twentieth Schedule (Sections 8(1)(p) and 15(2)(ee))
Determination of gross income and taxable income or assessed loss from petroleum operations
1. Interpretation
(1)In this Schedule—“allowable deduction” means a deduction allowable under this Schedule;“asset” includes any part or share of an asset or interest in an asset;“assessed loss attributable to petroleum operations” means any such loss determined by applying the provisions of paragraph 2;“capital expenditure” has the meaning given by subparagraph (2);“chargeable petroleum”, in relation to a petroleum operator, means petroleum obtained by the operator from petroleum operations carried on by the operator;“disposed of”, in relation to petroleum, has the meaning given by subparagraph (3) of paragraph 3;“income attributable to petroleum operations” means the aggregate of the amounts referred to in subparagraph (1) of paragraph 3;“petroleum information” means geological, geophysical and technical information, being information that relates to the presence, absence or extent of deposits of petroleum in any area in Zimbabwe;“residential unit” means an apartment, flat, house whether detached, semi-detached or terraced, or similar unit of residential accommodation;“taxable income attributable to petroleum operations” means any such income determined by applying the provisions of paragraph 2.(2)Capital expenditure of a petroleum operator in relation to a petroleum special grant is expenditure incurred by the petroleum operator in relation to that special grant—(a)in exploring for petroleum and ascertaining and testing the extent and characteristics of any such discovery, including such costs of—(i)geological, geophysical, geochemical, aerial, magnetic, gravity, seismic and other surveys and all processing analyses, interpretations and studies related thereto;(ii)drilling of shot holes, core holes, bore holes, water holes and holes for the discovery and delineation of petroleum reservoirs;(iii)appraisal of surveys and drilling, including the drilling and testing of exploration and appraisal wells and all reservoir studies;(b)in preparing for drilling or drilling and maintaining development or production wells, including all costs of labour, fuel, repairs, hauling and supplies and materials without salvage value;(c)in the acquisition of petroleum information or on reservoir studies;(d)on the provision of plant, machinery and equipment for the exploration for, and the development and production of, petroleum;(e)on the construction of any buildings, structures or works for the purpose of petroleum operations, including the provision of residential accommodation and associated facilities for employees of the petroleum operator and their dependants, and including any premium or consideration in the nature of a premium paid for the use of buildings, structures, works or land required for petroleum operations;(f)on the provision of any transportation or communication facilities required for the conduct of petroleum operations;(g)on the provision of office equipment and furniture in any building required for petroleum operations;(h)on the preparation of sites for production, including studies on the environmental impact of petroleum operations, engineering and design studies, delineation work and feasibility studies, done to determine the best means of conducting petroleum operations; and(i)prior to the year of assessment in which the petroleum operator first produces petroleum under a programme of continuous production and sale—(i)on general administration and management for the purposes of petroleum operations;(ii)on the education and training of citizens of Zimbabwe at an educational or technical institution, approved by the Commissioner, on attachment with a petroleum operator or an affiliate of a petroleum operator, in any aspect of operations for the discovery or recovery of petroleum;(j)in pursuance of a plan approved by the Minister responsible for the administration of the Mines and Minerals Act , in relation to the closing down of an oil field or any part of it;(k)on any permanent building used for the purposes of—(ii)a hospital, nursing home or clinic.2. Determination of taxable income or assessed loss
The taxable income or, as the case may be, the assessed loss, attributable to petroleum operations, accruing to a petroleum operator in any year of assessment, shall be the difference, if any, between the income so attributable accruing to the petroleum operator in the year of assessment and the sum of the allowable deductions of the petroleum operator for the year of assessment; and that difference, if any, is a taxable income if the income so attributable is greater than the sum of those allowable deductions, and is otherwise an assessed loss.3. Income from petroleum operations
(1)For the purposes of paragraph (p) of the definition of “gross income” in subsection (1) of sec tion eight, the amounts received by or accruing to, or deemed to have been received by or accrued to, a petroleum operator in a year of assessment include—(a)the fair market value, established as provided in subparagraph (2), of so much of the petroleum operator’s chargeable petroleum as was disposed of in the year of assessment; and(b)any amount received or receivable in the year of assessment by the petroleum operator under a policy of insurance or otherwise in respect of the loss or destruction of any of the petroleum operator’s chargeable petroleum; and(c)any interest or other amount derived by the petroleum operator in the year of assessment from or in connection with petroleum operations carried on by the petroleum operator; and(d)any amount to be included in the gross income of the petroleum operator in the year of assessment pursuant to subparagraph (2) of paragraph 8; and(e)any amount allowed to be deducted under paragraph 4, whether in the current or in any previous year of assessment, which has been recovered or recouped; and(f)any amount or value referred to in paragraph (d), (e), (h), (k), (l) or (m) of the definition of “gross income” in subsection (1) of section eight.(2)The fair market value, in relation to a disposal of petroleum, is—(a)the value established in relation to the disposal by reference to criteria for the determination of that value specified in the petroleum special grant under the authority of which the petroleum was won; or(b)where there are no criteria, such as are referred to in subparagraph (a), the value established in relation to the disposal under and in accordance with such rules as are prescribed.(3)Petroleum is disposed of if it is—(a)sold, donated or bartered; or(b)appropriated to refining or other processing in Zimbabwe without having been sold, donated or bartered prior to appropriation; or(c)exported without having been sold or bartered prior to export.(4)Except as is provided in subparagraph (1), the amounts referred to in paragraphs (a) to (o) of the definition of “gross income” in subsection (1) of section eight shall not, in the case of the petroleum operations of a petroleum operator, constitute income attributable to petroleum operations.4. Deductions allowed in determining taxable income from petroleum operations
(1)Subject to subsection (1) of section sixteen and paragraph 5, for the purpose of determining the taxable income attributable to the petroleum operations of any petroleum operator, there shall be deducted from the income so attributable of the petroleum operator the amounts allowed to be deducted in terms of this paragraph.(2)The deductions allowed shall be—(a)expenditure and losses incurred wholly and exclusively for the purposes of petroleum operations, including expenditure so incurred—(i)for repairs to any building structure, works, plant, machinery, implements, utensils or articles held, occupied or used for the purpose of carrying on petroleum operations; and(ii)in respect of rent for land or buildings in Zimbabwe occupied for the purpose of carrying on petroleum operations; and(iii)in respect of interest on, or in borrowing or obtaining, a loan or other form of credit;but does not include expenditure or losses of a capital nature;(b)expenditure and losses incurred wholly and exclusively for the purpose of petroleum operations in respect of any matter for which—(i)a deduction is allowable in terms of paragraph (g), (h), (j), (m), (o), (q), (r), (u), (aa) or (bb) of subsection (2) of section fifteen; or(ii)an allowance is provided for in paragraph 6.(3)Where any expenditure or losses referred to in subparagraph (2) are incurred as part of or in conjunction with any other expenditure, only that proportion of the total expenditure or losses, as the case may be, which is wholly and exclusively incurred for the purposes of petroleum operations shall be allowed as a deduction in terms of this paragraph.(4)For the purpose of determining the taxable income attributable to petroleum operations of any petroleum operator in a year of assessment, there shall be deducted any assessed loss, determined under this Schedule for the previous year of assessment, from the income remaining after the deductions referred to in subparagraph (2) and sections seventeen and eighteen have been made.(5)The provisos to subsection (3) of section fifteen shall apply in relation to subparagraph (3) as they apply in relation to that subsection.(6)Where—(a)a petroleum special grant ceases to have effect, otherwise than by reason of cancellation, and, at the date thereof, the petroleum operator is not then a petroleum operator in relation to any other petroleum special grant; and(b)an assessed loss, determined under this Schedule, of the petroleum operator remains undischarged after that date; and(c)the petroleum operator becomes, within five years after that date, a grantee of a petroleum special grant;that assessed loss, to the extent that it remains undischarged when the petroleum operator becomes such a grantee, shall be deemed to be the assessed loss or part of the assessed loss, as the case may be, of the petroleum operator determined for the year of assessment in which the petroleum operator became such a grantee, and subsection (3) of section fifteen shall apply accordingly.(7)Subsection (4) of section fifteen shall have effect for the purposes of this Schedule as it has effect for the purposes of that section.5. Limitations on allowable deductions
(1)No deduction shall be allowed under paragraph 4 in respect of—(a)any expenditure, other than payments to the Government in the nature of royalty payments, wholly or partly depending on, or determined by reference to, the quantity or value of, or the profits from, petroleum won by a petroleum operator; or(b)any amount which—(i)is payable to the government in terms of any provision in a petroleum special grant under which the amount is calculated by reference to the profitability of the petroleum operator’s petroleum operations or on the rate of return on the operator’s investment in those operations or in any similar manner; and(ii)by the terms and conditions of the petroleum special grant is calculated on an after-tax basis;or(c)any expenditure to the extent that it is incurred to produce income which is not attributable to petroleum operations; or(d)any expenditure such as is referred to in subparagraph (iii) of subparagraph (a) of subparagraph (2) of paragraph 4—(i)unless the Commissioner is satisfied that the loan or credit has been or is being used for the purpose of petroleum operations; or(ii)to the extent that the interest concerned exceeds the commercial rate payable by a borrower dealing at arms’ length with the lender; or(iii)to the extent that any expenditure incurred exceeds the amount that would have been agreed upon by a person dealing at arm’s length with the person providing the loan or credit concerned;or(e)any expenditure on a residential unit used for housing employees of the petroleum operator, to the extent that the expenditure exceeds—(i)fifteen thousand dollars, where it was incurred before the 1st April, 1991; or(ii)thirty thousand dollars, where it was incurred in the year of assessment beginning on the 1st April, 1991; or(iii)thirty-five thousand dollars, where it was incurred on or after the 1st April, 1992, but before the 1st April, 1995; or(iv)fifty thousand dollars, where it was incurred on or after the 1st April, 1995, but before the 1st January, 1999; or(v)one hundred thousand dollars, where it was incurred on or after the 1st January, 1999; or(vi)ten thousand United States dollars, incurred by the taxpayer, where the expenditure was incurred on or after the 1st January, 2009;(f)any expenditure on a passenger motor vehicle as defined in subparagraph (2) of paragraph 13 of the Fourth Schedule, to the extent that the expenditure exceeds—(i)twenty-two thousand dollars, where it was incurred before the 1st April, 1991; or(ii)thirty thousand dollars, where it was incurred in the year of assessment beginning on the 1st April, 1991; or(iii)fifty thousand dollars, where it was incurred on or after the 1st April, 1992, but before the 1st April, 1995; or(iv)seventy-five thousand dollars, where it was incurred on or after the 1st April, 1995, but before the 1st January, 1999; or(v)two hundred thousand dollars, where it was incurred on or after 1st January, 1999;(vi)ten thousand United States dollars, incurred by the taxpayer, where the expenditure was incurred on or after the 1st January, 2009;(g)any expenditure on any permanent building used for purposes of a school, hospital, nursing home or clinic—(i)unless it is proved to the satisfaction of the Commissioner that, at the relevant time—(A)in the case of a school, more than one-half of the pupils are children of persons employed by the petroleum operator in carrying on petroleum operations; or(B)in the case of a hospital, nursing home or clinic, more than one-half of the persons receiving treatment thereat are employed by the petroleum operator in carrying on petroleum operations or are members of the families of persons who are so employed;or(ii)to the extent that the expenditure exceeds—(A)in respect of any residential unit used by staff employed at the school, hospital, nursing home or clinic—(I)fifteen thousand dollars, where the expenditure was incurred before the 1st April, 1991; or(II)thirty thousand dollars, where the expenditure was incurred in the year of assessment beginning on the 1st April, 1991; or(III)thirty-five thousand dollars, where the expenditure was incurred on or after the 1st April, 1992, but before the 1st April, 1995; or(IV)fifty thousand dollars, where the expenditure was incurred on or after the 1st April, 1995, but before the 1st January, 1999; or(V)one hundred thousand dollars, where the expenditure was incurred on or after the 1st January, 1999;or(B)in respect of any one such school, hospital, nursing home or clinic—(I)one hundred thousand dollars, where the expenditure was incurred before the 1st April, 1993;(II)two hundred and fifty thousand dollars, where the expenditure was incurred on or after the 1st April, 1993, but before the 1st April, 1995; or(III)five hundred thousand dollars, where the expenditure was incurred on or after the 1st April, 1995, but before the 1st January, 1999; or(IV)one million five hundred thousand dollars, where the expenditure was incurred on or after the 1st January, 1999.(2)Where petroleum is disposed of, no deduction shall be allowed in respect of any cost of the transportation of the petroleum—(b)if applicable, within Zimbabwe, beyond the point of disposal as defined in the petroleum special grant under which the petroleum was won.(3)Except as provided in paragraph 4, no deduction shall, as regards income attributable to petroleum operations, be made in respect of allowances or deductions referred to in subsection (2) of section fifteen.(4)No deduction shall be made in regard to any bonus payment made by a petroleum operator or taxpayer in respect of the signing of a petroleum agreement.6. Allowances in respect of capital expenditure
Where in any year of assessment a petroleum operator incurs capital expenditure for the purpose of petroleum operations, that expenditure shall be allowed as a deduction for the purpose of determining the taxable income or assessed loss, as the case may be, of the petroleum operator in the year of assessment.7. Assignment of petroleum special grant
(1)Where a petroleum special grant is assigned in any year of assessment under Part XX of the Mines and Minerals Act by a petroleum operator, the petroleum operator and the assignee shall jointly furnish to the Commissioner a statement in writing—(a)identifying any asset to which this paragraph applies which passed to the assignee on the assignment; and(b)stating the proportion of the consideration given for the assignment which appertains to that asset or, where no consideration was given, the value of that asset.(2)Where—(a)a statement is furnished in terms of subparagraph (1) and the Commissioner is satisfied with it, the proportion of the consideration or, as the case may be, the value, stated in the statement shall, for the purposes of paragraph 6, rank as capital expenditure incurred by the assignee, and shall, for the purposes of paragraph 8, rank as a recovery of capital expenditure by the assignor, in respect of the asset; or(b)the Commissioner is not satisfied with a statement furnished in terms of subparagraph (1) or if no such statement is furnished, the Commissioner may determine the amount which appertains to the asset and that amount shall rank as provided in subparagraph (a).(3)This paragraph applies to any asset, used for carrying on petroleum operations, in respect of which a deduction has been allowed under paragraph 6 for the purpose of determining the taxable income of the petroleum operator making the assignment.8. Disposal, loss, etc., of asset
(1)This paragraph applies where, in a year of assessment, any asset of a petroleum operator—(a)in respect of which a deduction under paragraph 6 has been allowed for the purpose of determining the taxable income of the petroleum operator, is disposed of, lost or destroyed; or(b)to which paragraph 7 applies, passes to an assignee in circumstances such as are referred to in that paragraph.(2)Where this paragraph applies, the income of the petroleum operator in the year of assessment shall include the amount of the deduction allowed in respect of the asset concerned, to the extent that the deduction has been recovered or recouped as a result of the disposal, loss, destruction or passing of that asset, for the purpose of determining the taxable income of the petroleum operator.9. Returns and liability to tax
Nothing in this Schedule shall be construed as relieving a petroleum operator from—(a)the obligation of rendering returns of income in respect of income, other than income attributable to petroleum operations, derived by the petroleum operator, and(b)any liability to tax in respect of income, not so attributable, referred to in subparagraph (a).10. Information in returns
A petroleum operator shall specify separately in a return rendered in respect of the petroleum operator’s petroleum operations the income attributable to those operations and shall furnish information with respect to the following matters—(a)the quantity of the petroleum operator’s chargeable petroleum won and saved;(b)the total quantity of that petroleum disposed of, the manner of each disposal making up that total and the fair market value in relation to each disposal;(c)in the case of petroleum won and saved that is lost or destroyed, the quantity lost or destroyed and the amount received or receivable under a policy of insurance or otherwise in respect of the petroleum;(d)any amount included in the income of the petroleum operator pursuant to subparagraph (2) of paragraph 8;(e)any interest or other amount derived by the petroleum operator from petroleum operations;(f)the amount of all the allowable deductions claimed;(g)the amount of each allowable deduction claimed and particulars of that amount;(h)any asset in relation to which paragraph 7 or subparagraph (1) of paragraph 8 applies;(i)the amount of the taxable income, if any, or the assessed loss;(j)the amount, if any, of tax payable;(k)such other information as the Commissioner may require.11. Maintenance of books in foreign currency, etc.
Where a taxpayer that is a petroleum operator elects, which election shall be final, to maintain all books and records relating to petroleum operations in the currency of the United States of America—(a)the Commissioner shall determine the taxable income or assessed loss attributable to petroleum operations for any year of assessment in that currency; and(b)notice of assessment and of any amount of tax payable shall be given to the taxpayer in that currency; and(c)payment of tax shall be effected in that currency.Twenty-first Schedule (Section 34)
Residents’ tax on interest
1. Interpretation
(1)In this Schedule—“financial institution” means—(a)any banking institution registered or required to be registered in terms of the Banking Act ; or(b)any building society registered or required to be registered in terms of the Building Societies Act ; or(c)the Reserve Bank of Zimbabwe;(c)a company acting as trustee or manager of a unit trust scheme registered in terms of the Collective Investment Schemes Act , the Zimbabwe Development Bank established in terms of the Zimbabwe Development Dank Act and the successor company to the Agricultural Finance Corporation formed under the Agricultural Finance Act ; or(c)an asset manager as defined in the Asset Management Act ; or(d)a collective investment scheme as defined in section 3 of the Collective Investment Schemes Act, ;“foreign currency account” means an account held at a bank or other financial institution in Zimbabwe in which the funds are denominated in a foreign currency;“interest” means interest from a source in Zimbabwe payable by a financial institution on any loan or deposit, and—(a)includes—(i)a dividend distributed by a building society in respect of any share other than a share referred to in subparagraph (i), (ii) or (iii) of the definition of “dividend” in subparagraph (1) of paragraph 1 of the Ninth Schedule; and(ii)income from Treasury bills;(iii)income from banker’s acceptances and other discounted instruments traded by financial institutions;(b)does not include—(i)interest paid on class “C” shares as defined in the Building Societies (Class “C” Shares) Regulations, 1986 (Statutory Instrument 308 of 1986), to the extent and subject to the conditions specified in those regulations; or(iii)interest payable to any other financial institution; or(iv)interest payable to the holder of a moneylender’s licence granted in terms of the Moneylending and Rates of Interest Act ; or(v)interest payable to any person whose receipts and accruals are exempt from income tax in terms of paragraph 1, 2 or 3 of the Third Schedule; or(vi)interest payable to an insurer registered in terms of the Insurance Act ; or(vii)interest payable on a foreign currency account held by a taxpayer other than a company or trust; or(viii)interest which is exempt from income tax in terms of paragraph 10 of the Third Schedule;(ix)interest on the amount payable by the Reserve Bank of Zimbabwe for the export proceeds of a business organisation engaging in the export of goods and services upon the acquittance by that organisation of the export documentation relating to that amount;“person”, in addition to the meaning given to the term in section two, includes, in relation to income the subject of a trust to which a beneficiary is entitled, the trust.(2)For the purposes of this Schedule—(a)in determining whether or not residents’ tax on interest should be withheld, the question as to whether or not the payee is ordinarily resident in Zimbabwe shall be decided by reference to the date on which the interest is paid by the financial institution;(b)interest shall be deemed to be paid to the payee if it is credited to his account or so dealt with that the conditions under which he is entitled to it are fulfilled, whichever occurs first.2. Financial institutions to withhold tax
(1)Every financial institution that pays interest to—(a)a person, other than a company or trust, who is ordinarily resident in Zimbabwe; or(b)a partnership, company or trust which is ordinarily resident in Zimbabwe;shall withhold residents’ tax on interest from that interest and shall pay the amount withheld to the Commissioner on or before the tenth day of the month following the month in which the payment was made or within such further time as the Commissioner may for good cause allow.Provided that in the case of interest referred to in paragraph (a)(ii) and (iii) of the definition of “interest” in paragraph 1(1), payment of the interest shall be deemed to have been made on the date of maturity of the Treasury bill, banker’s acceptance or other discounted instrument concerned.(2)Where residents’ tax on interest is withheld in terms of subparagraph (1), the payer shall provide the payee with a certificate, in a form approved by the Commissioner, showing—(a)the amount of the interest; and(b)the amount of the residents’ tax on interest withheld.(3)Any payer who fails to provide a payee with a certificate in terms of subparagraph (2), or furnishes an incorrect certificate under that subparagraph shall be guilty of an offence and liable to a fine not exceeding level five or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment:Provided that, if it is proved that the payer’s conduct was wilful, he shall be liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.3. Agents to withhold tax not deducted by financial institutions
(1)Every agent who, on behalf of a payee who is—(a)a person, other than a company or trust, who is ordinarily resident in Zimbabwe; or(b)a partnership, company or trust which is ordinarily resident in Zimbabwe;receives interest from which residents’ tax on interest has not been withheld by the financial institution shall withhold residents’ tax on interest from that interest and shall pay the amount withheld to the Commissioner on or before the tenth day of the month following the month in which the interest was received.(2)Where residents’ tax on interest is withheld in terms of subparagraph (1), the agent shall provide the payee with a certificate in a form approved by the Commissioner, showing—(a)the name of the financial institution that paid the interest; and(b)the amount of the interest; and(c)the amount of the residents’ tax on interest withheld.(2a)Any agent who fails to provide a payee with a certificate in terms of subparagraph (2), or furnishes an incorrect certificate under that subparagraph, shall be guilty of an offence and liable to a fine not exceeding level five or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment:Provided that, if it is proved that the agent’s conduct was wilful, he shall be liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.(3)For the purpose of this paragraph, a person shall be deemed to be the agent of a payee and to have received interest on behalf of that payee if—(a)that person’s address appears as the address of the payee in the records of the financial institution that paid the interest; and(b)the warrant or cheque in payment of the interest is delivered at that person’s address.(4)For the purposes of this paragraph, where a trust receives interest—(a)to the whole or part of which a beneficiary is entitled in terms of the trust; or(b)which in terms of section ten is deemed to accrue to a person; then—(i)a trustee of that trust shall be deemed to be an agent in respect of such interest or part thereof; and(ii)any such beneficiary or person shall be deemed to be a payee in respect of such interest or part thereof.(5)Any person deemed to be the agent of a payee in terms of subparagraph (3) or (4) shall, as regards the payee and in respect of any income received by or accruing to or in favour of the payee, have and exercise all the powers, duties and responsibilities of a person declared to be the agent of the payee in terms of section fifty-eight.4. Payee to pay tax not withheld by financial institution or agent
A payee to whom interest is paid from which residents’ tax on interest has not been withheld in terms of paragraph 2 or 3 or recovered in terms of section seventy-seven shall pay to the Commissioner, on or before the tenth day of the month following the month in which the payment was made, the tax that should have been withheld.5. Returns to be furnished
Payment of residents’ tax on interest by a financial institution or an agent shall be accompanied by a return in the form prescribed.6. Penalty for non-payment of tax
(1)Subject to subparagraph (2), a financial institution or an agent in Zimbabwe that fails to withhold or pay to the Commissioner any amount of residents’ tax on interest as provided in paragraph 2 or 3 shall be personally liable for the payment to the Commissioner, not later than the date on which payment should have been made in terms of paragraph 2 or 3, as the case may be, of—(a)the amount of residents’ tax on interest which the financial institution or the agent, as the case may be, failed to pay to the Commissioner; and(b)a further amount equal to one hundred per centum of such residents’ tax on interest.(2)The Commissioner, if he is satisfied in any particular case that the failure to pay to him residents’ tax on interest was not due to any intent to evade the provisions of this Schedule, may waive the payment of the whole or such part as he thinks fit of the amount referred to in subparagraph (b) of subparagraph (1).7. Refund of overpayments
If it is proved to the satisfaction of the Commissioner that any person has been charged with residents’ tax on interest in excess of the amount properly chargeable to him in terms of this Schedule, the Commissioner shall authorize a refund in so far as it has been overpaid:Provided that the Commissioner shall not authorize any refund in terms of this paragraph unless the claim therefor is made within six years of the date of payment of such tax.Twenty-second Schedule (Sections 2 (1), 8 (1), 15 (2) (ff) and 22)
Determination of gross income and taxable income or assessed loss from special mining lease operations
1. Interpretation
In this Schedule—“allowable deduction” means any deduction allowable under this Schedule;“assessed loss” means an assessed loss determined by applying the provisions of paragraph 2;“asset” includes any part or share of an asset or interest in an asset;“capital expenditure” means exploration expenditure or development expenditure or both, as the context requires;“chargeable minerals” means minerals obtained by the holder of a special mining lease from special mining lease operations carried out by him;“development expenditure” means expenditure actually incurred, whether directly or indirectly, in or in connection with development operations, including expenditure incurred in respect of—(a)the acquisition of motor vehicles, machinery, implements, utensils and other articles used for the purpose of development operations, including pipes, units for the purpose of production and treatment, and drilling equipment; and(b)the acquisition of furniture, tools and equipment used in offices, residential units, schools, hospitals, nursing homes or clinics such as are referred to in subparagraph (ii) of paragraph (c) of the definition of “development operations”, and in warehouses, vehicles, motorized rolling equipment, aircraft, fire and security stations, water and sewerage plants and power plants; and(c)labour, fuel, haulage, supplies, materials and repairs in connection with development operations; and(d)charges, fees or rent for or in respect of land or buildings occupied for the purpose of development operations; and(e)general administration and management directly connected with development operations in such verifiable amount as may be agreed in or pursuant to the special mining lease agreement or, where there is no such agreement, in such amount as may be determined by the Commissioner to be fair and reasonable; and(f)measures to prevent, minimize or remedy environmental damage caused by development operations, where such measures are taken pursuant to a mining development plan approved by the Minister responsible for the administration of the Mines and Minerals Act ;“development operations” means operations carried out in Zimbabwe for or in connection with the development of a special mining lease area, and includes—(a)the sinking of shafts; and(b)the installation of machinery, implements, utensils and other articles required for special mining lease operations; and(c)the construction and erection of—(i)facilities for the production, treatment, storage, gathering and conveyance of minerals; and(ii)offices, residential units, schools, hospitals, nursing homes or clinics for use by persons employed in or in connection with mining operations and by their families; and(d)the construction of roads in or to the special mining lease area;“disposed of”, in relation to minerals, has the meaning given by subparagraph (3) of paragraph 3; “exploration expenditure” means expenditure actually incurred, whether directly or indirectly, in or in connection with exploration operations, including expenditure incurred in respect of—(a)the acquisition of motor vehicles, machinery, implements, utensils and other articles employed for the purpose of exploration operations, including pipes and drilling equipment; and(b)labour, fuel, haulage, supplies, materials, and repairs in connection with exploration operations; and(c)charges, fees or rent for or in respect of land or buildings occupied for the purposes of exploration operations; and(d)general administration and management directly connected with exploration operations in such verifiable amount as may be agreed in or pursuant to the special mining lease agreement or, where there is no such agreement, in such amount as may be determined by the Commissioner to be fair and reasonable;“exploration operations” means any operations carried out in Zimbabwe for or in connection with exploration for minerals, and includes—(a)geological, geophysical, geochemical, paleontological, aerial, magnetic, gravity or seismic surveys; and(b)the study of the feasibility of any special mining lease operations or development operations to be carried out or of the environmental impact of such operations;“income attributable to special mining lease operations” means the aggregate of amounts referred to in subparagraph (1) of paragraph 3;“Minerals Marketing Corporation of Zimbabwe” means the corporation established by section 3 of the Minerals Marketing Corporation of Zimbabwe Act ;“residential unit” means an apartment, flat, house, whether detached, semi-detached or terraced, or any similar unit of residential accommodation;“taxable income” means any taxable income determined by applying paragraph 2;“trade training” means any education or training, other than education or training which is provided as part of the general education of a pupil, which is intended to train persons to perform work in connection with the special mining lease operations of the taxpayer or to improve the performance of such work;“training building” means any building the construction of which was commenced on or after the 1st April, 1994 which is erected by the taxpayer and used exclusively for the purpose of providing trade training for persons who are or will be employed by him in connection with his special mining lease operations;“training equipment” means new or unused articles, implement or utensils purchased on or after 1st April, 1994, and, in the opinion of the Commissioner, used by the taxpayer exclusively for the purpose of providing trade training for persons who are or will be employed by the taxpayer in connection with the taxpayer’s special mining lease operations;“year of production”, in relation to a special mining lease area means the year of assessment in which minerals from the area are first sold or otherwise disposed of.2. Determination of taxable income or assessed loss
The taxable income or, as the case may be, the assessed loss accruing to the holder of a special mining lease in a year of assessment shall be the difference, if any, between the income attributable to special mining lease operations accruing to him in that year and the sum of his allowable deductions for that year; and that difference, if any, is a taxable income if the income so attributable is greater than the sum of those allowable deductions, and is otherwise an assessed loss.3. Income from special mining lease operations
(1)For the purposes of paragraph (s) of the definition of “gross income” in subsection (1) of section eight, the amounts received by or accruing to, or deemed to have been received by or accrued to, the holder of a special mining lease in a year of assessment shall include—(a)the fair market value, established as provided in subparagraph (2), of so much of the holder’s chargeable minerals as were disposed of in the year of assessment; and(b)any amount received or receivable in the year of assessment by the holder, under a policy of insurance or otherwise, in respect of the loss or destruction of any of the holder’s chargeable minerals; and(c)any—(i)interest or amount in the nature of interest;received or receivable by the holder in the year of assessment from or in connection with his special mining lease operations; and(d)any amount to be included in the income attributable to special mining lease operations of the holder in the year of assessment pursuant to subparagraph (2) of paragraph 8; and(e)any amount allowed to be deducted under paragraph 4 or 5, whether in the current or any previous year of assessment, which has been recovered or recouped; and(f)any amount or value referred to in paragraph (d), (e), (h), (k), (l) or (m) of the definition of “gross income” in subsection (1) of section eight.(2)The fair market value, in relation to a disposal of minerals by the holder of a special mining lease, is—(a)the value established by the Commissioner by reference to criteria for the determination of that value specified in the special mining lease agreement; or(b)where there is no special mining lease agreement or there are no criteria such as are referred to in subparagraph (a), the value established by the Commissioner under and in accordance with such rules as are prescribed.(3)Minerals are disposed of by the holder of a special mining lease if they are—(a)sold, donated or bartered or used for repayment of loans or any form of consumer credit; or(b)appropriated to refining or other processing in Zimbabwe without having been sold, donated or bartered prior to appropriation; or(c)exported without having been sold, donated or bartered prior to export.(4)Except as provided in subparagraph (1), the amounts referred to in paragraphs (a) to (s) of the definition of “gross income” in subsection (1) of section eight shall not, in the case of the holder of a special mining lease, constitute income attributable to his special mining lease operations.4. General deductions allowed in determining taxable income
(1)Subject to subsection (1) of section sixteen and paragraph 6, for the purpose of determining the taxable income of the holder of a special mining lease for a year of assessment, there shall be deducted from income attributable to his special mining lease operations in that year the amount of any—(a)expenditure and losses, other than of a capital nature, incurred in that year wholly and exclusively for the purpose of special mining lease operations carried out by him; and(b)expenditure incurred in that year in respect of interest on, or in borrowing or obtaining, a loan or other form of credit or financial accommodation; and(c)expenditure incurred in that year in respect of royalty payable to the Government on minerals won; and(d)expenditure incurred in that year in respect of commission payable to the Minerals Marketing Corporation of Zimbabwe; and(e)expenditure and losses incurred in that year wholly and exclusively for the purpose of special mining lease operations carried out by him, in respect of any matter for which a deduction is allowable in terms of paragraph (b), (g), (h), (j), (m), (o), (q), (r), (u), (aa) or (bb) of subsection (2) of section fifteen or in terms of paragraph 5; and(f)a training investment allowance which shall be equal to fifty per centum of the cost to the holder of—(i)any training building; or(ii)any addition or alteration to any training building; or(iii)any training equipment;which is brought into use in that year.(2)Where any expenditure or losses referred to in subparagraph (1) are incurred as part of or in conjunction with any other expenditure, only that portion of the total expenditure or losses, as the case may be, which is wholly and exclusively incurred for the purpose of special mining lease operations shall be allowed as a deduction in terms of this paragraph.(3)The provisos to subsection (3) of section fifteen shall apply in relation to subparagraph (2).(4)Subsection (4) of section fifteen shall have effect for the purpose of this Schedule as it has effect for the purposes of that section.(5)For the purpose of determining the taxable income of the holder of a special mining lease for a year of assessment, any assessed loss incurred by him for the previous year of assessment shall be deducted from the income remaining after the deductions referred to in this paragraph have been made.5. Capital redemption allowances
(1)Subject to this paragraph and paragraph 6, capital expenditure incurred by the holder of a special mining lease may be deducted only in accordance with this paragraph for the purpose of determining the holder’s taxable income attributable to special mining lease operations in any year of assessment.(2)Expenditure which the holder of a special mining lease incurs in or before the year of production of his special mining lease area, in respect of—(a)exploration operations carried out in the special mining lease area, whether before or after the issue of the special mining lease; or(b)exploration operations carried out not more than six years before the issue of the special mining lease, where—(i)the area in which the operations were carried out and the special mining lease area were embraced by the same exclusive prospecting order made in terms of Part VI of the Mines and Minerals Act ; and(ii)the operations were carried out as part of a programme of operations approved by the Mining Affairs Board in terms of that Part;or(c)exploration operations carried out not more than six years before the issue of the special mining lease, where—(i)the area in which the operations were carried out was embraced by an exclusive prospecting order made in terms of Part VI of the Mines and Minerals Act , which order did not embrace the special mining lease area and has ceased to have effect; and(ii)the operations were carried out as part of a programme of operations approved by the Mining Affairs Board in terms of Part VI of the Mines and Minerals Act ; and(iii)no mining operations have resulted from the exclusive prospecting order referred to in subparagraph (i); and(iv)the expenditure on the exploration operations has not been deducted against any other income accruing to the holder concerned;or(d)development operations;shall be deemed to have been incurred in the year of production and may, in the case of exploration expenditure, be deducted in full in that year or, in the case of development expenditure, be deducted as to one-quarter of the expenditure in that year and as to a further one-quarter in each of the three immediately succeeding years of assessment.(3)Expenditure which the holder of a special mining lease incurs in a year of assessment after the year of production of his special mining lease area, in respect of—(a)exploration operations in respect of the special mining lease area, may be deducted in full in that year of assessment; or(b)development operations, may be deducted as to one-quarter of the expenditure in that year of assessment and as to one-quarter in each of the three immediately succeeding years of assessment.(4)Expenditure which the holder of a special mining lease incurs on exploration operations not more than six years before a year of assessment subsequent to the year of production of his special mining lease area may be deducted in full in that year of assessment, if—(a)the area in which the exploration operations were carried out was embraced by an exclusive prospecting order made in terms of Part VI of the Mines and Minerals Act , which order ceased to have effect before the year assessment concerned; and(b)the exploration operations were carried out as part of a programme of operations approved by the Mining Affairs Board in terms of Part VI of the Mines and Minerals Act ; and(c)no mining operations have resulted from the exclusive prospecting order referred to in subparagraph (a); and(d)the expenditure on the exploration operations has not been deducted against any other income accruing to the hold concerned.(5)Where, in or before the year of production of the special mining lease area concerned, an amount has been received by or accrued to or in favour of the holder of a special mining lease in respect of the disposal, loss or destruction of any asset used in connection with his exploratic operations or development operations, any capital expenditure incurred in respect of the asset shall, if otherwise allowable as a deduction under this paragraph, be allowable only to the extent that the capital expenditure exceeds the amount so received or accrued.(6)For the purposes of subparagraph (5), the amount received or accrued to or in favour of the holder of the special mining lease concerned shall be—(a)if the asset was disposed of by way of sale for a separate price, the price for which it was sold, less the expenses of sale; or(b)if the asset was disposed of together with other property by way of sale and a separate price was not determined in respect of the asset, such part of the price for which the asset and the other property were sold as may be determined by the Commissioner, less such part of the expenses of the sale as he may determine; or(c)if the asset was disposed of otherwise than by way of sale the value of the asset as at the date of disposal; or(d)if the asset was lost or destroyed, such amount as may be received by or have accrued to or in favour of the holder, under a policy of insurance or otherwise, in respect of the loss or destruction.(7)Any capital expenditure incurred by the holder of a special mining lease in or before the year of production of his special mining lease area, other than capital expenditure incurred in respect of an asset, shall, if otherwise allowable as a deduction under this paragraph, be reduced by any amount received by or accrued to or in favour of the holder in or before the year of production from a recovery or recoupment of any of that capital expenditure.6. Limitations on allowable deductions
(1)In this paragraph—“equity capital”, in relation to the holder of a special mining lease, means the sum of the holder’s issued and paid-up share capital, reserves, unappropriated profits and loans from shareholders;Provided that such loans bear no interest and are not repayable on or by a certain date.(2)The holder of a special mining lease shall not be allowed any deduction under this Schedule in respect of—(a)any expenditure, other than payments to the Government in the nature of royalty payments, or commission payable to the Minerals Marketing Corporation of Zimbabwe, wholly or partly depending on, or determined by reference to, the quantity or value of, or the profits from, his chargeable minerals; or(b)any amount payable to the Government which is calculated by reference to the profitability of his special mining lease operations, or on the rate of return on his investment in those operations, or on an after-tax basis or in any similar manner; or(c)any expenditure to the extent that it is incurred to produce income which is not income attributable to special mining lease operations; or(d)any expenditure such as is referred to in subparagraph (b) of subparagraph (1) of paragraph 4—(i)unless the Commissioner is satisfied that the loan or credit has been or is being used for the purpose of special mining lease operations; or(ii)to the extent that the interest concerned exceeds the commercial rate payable for the type and currency of the loan by a borrower dealing at arm’s length with the lender; or(iii)to the extent that any expenditure incurred exceeds the amount that would have been agreed upon by 3 person dealing at arm’s length with the person providing the loan or credit concerned; or(e)any expenditure, in the case of a loan for development operations—(i)unless the expenditure was incurred in accordance with the provisions of a financing plan approved in terms of a special mining lease agreement; or(ii)to the extent that the expenditure relates to a part of the debt exceeding, in any year of assessment, three times the holder’s equity capital, or such other multiple of his equity capital as may be fixed by or in terms of a special mining lease agreement;or(f)any expenditure on any residential unit which is used for housing the holder’s employees and their families, to the extent that the expenditure exceeds—(i)thirty-five thousand dollars, where the residential unit was erected in the year of assessment beginning on the 1st April 1994; or(ii)fifty thousand dollars, where the residential was erected on or after the 1st April, 1995, but before the 1st January, 1999; or(iii)one hundred thousand dollars, where the residential unit was erected on or after the 1st January, 1999;(iv)ten thousand United States dollars, where the residential unit was erected on or after the 1st January 2009;(v)twenty-five thousand United States dollars, where the residential unit was erected on or after the 1st January, 2018;or(g)any expenditure on any passenger motor vehicle as defined in subparagraph (2) of paragraph 14 of the Fourth Schedule, to the extent that the expenditure exceeds—(i)fifty thousand dollars, where the motor vehicle was purchased in the year of assessment beginning the 1st April, 1994; or(ii)seventy-five thousand dollars, where the motor vehicle was purchased on or after the 1st April 1995, but before the 1st January, 1999; or(iii)two hundred thousand dollars, where the motor vehicle was purchased on or after the 1st January, 1999;(iv)ten thousand United States dollars, where the motor vehicle was purchased on or after the 1st January 2009;or(h)any expenditure on any permanent building used for the purpose of a school, hospital, nursing home or clinic—(i)unless it is proved to the satisfaction of the Commissioner that, at the relevant time—(A)in the case of a school, more than one-half of the pupils are children of persons employed by the holder in carrying out special mining lease operations; or(B)in the case of a hospital, nursing home or clinic, more than one-half of the persons receiving treatment thereat are employed by the holder in carrying out special mining lease operations or are members of their families;or(ii)to the extent that the expenditure exceeds—(A)in respect of any residential unit used by staff employed at the school, hospital, nursing home or clinic—(I)thirty-five thousand dollars, where he expenditure was incurred in the year of assessment beginning on the 1st April, 1994; or(II)fifty thousand dollars, where the expenditure was incurred on or after 1st April, 1995, but before the 1st January, 1999; or(III)one hundred thousand dollars, where the expenditure was incurred on or after the 1st January, 1999;(IV)ten thousand United States dollars, where the expenditure was incurred on or after the 1st January 2009 or;or(B)in respect of any one such school, hospital, nursing home or clinic—(I)two hundred and fifty thousand dollars, where the expenditure was incurred in the year of assessment beginning the 1st April, 1994; or(II)five hundred thousand dollars, where the expenditure was incurred on or after the 1st April, 1995, but before the 1st January, 1999; or(III)one million five hundred thousand dollars, where the expenditure was incurred on or after the 1st January, 1999;(IV)one hundred and fifty thousand United States dollars, where the expenditure was incurred on or after the 1st January, 2018.(iii)any additional profits tax, or interest payable thereon, charged in terms of this Act, or any similar tax charged in any country other than Zimbabwe.(3)Where the holder of a special mining lease disposes of any of his chargeable minerals, he shall not be allowed any deduction under this Schedule in respect of the transportation of the minerals—(b)if applicable, within Zimbabwe beyond the delivery point as defined in his special mining lease.(4)Except as provided in paragraph 4, no deduction shall, as regards income attributable to special mining lease operations, be made in respect of allowances or deductions referred to in subsection (2) of section fifteen.(5)No deduction shall be allowed in respect of any bonus payment made by any person in respect of the signing of a special mining lease agreement or the issue of a special mining lease.7. Deductions allowed on transfer of special mining lease
(1)Where in any year of assessment the holder of a special mining lease transfers his lease, wholly or partially, to another person under the Mines and Minerals Act , he and the transferee shall jointly, within thirty days after the date of the transfer, furnish to the Commissioner a statement in writing—(a)identifying any asset to which this paragraph applies which passed to the transferee; and(b)stating the proportion of the consideration given for the transfer which appertains to the asset or, where no consideration was so given, the value of the asset.(2)If the Commissioner is satisfied with a statement furnished to him in terms of subparagraph (1), the proportion of the consideration which appertains to the asset or, as the case may be, the value of the asset shall—(a)for the purposes of paragraph 5, rank as—(i)exploration expenditure if the deduction allowed as provided in subparagraph (4) was in respect of exploration expenditure; or(ii)development expenditure if that deduction was in respect of development expenditure; and(b)for the purpose of paragraph 8, rank as a recovery of the transferor’s capital expenditure.(3)If the Commissioner is not satisfied with a statement furnished to him in terms of subparagraph (1) or if no such statement has been furnished to him, he shall determine the value of the asset which shall then rank as exploration expenditure or development expenditure, as provided in subparagraph (a) of subparagraph (2), or as capital expenditure as provided in subparagraph (b) of subparagraph (2).(4)This paragraph applies in relation to any asset in respect of which a deduction has been allowed under paragraph 5 for the purposes of determining the transferor’s taxable income.8. Disposal, loss etc. of asset
(1)This paragraph applies where, in a year of assessment, an asset of the holder of a special mining lease—(a)in respect of which a deduction under subparagraph (3) of paragraph 5 has been allowed for the purpose of determining the holder’s taxable income, is disposed of, lost or destroyed; or(b)to which paragraph 7 applies, passes to a transferee in circumstances such as are referred to in that paragraph.(2)Where this paragraph applies, the income attributable to special mining lease operations of the holder of the special mining lease in the year of assessment concerned shall include the amount of the deduction allowed in respect of the asset concerned, to the extent that the deduction has been recovered or recouped as a result of the disposal, loss, destruction or passing of that asset.(3)Subparagraph (6) of paragraph 5 shall apply, mutatis mutandis, for the purpose of determining the amount received or recouped as a result of the disposal, loss or destruction of any asset.9. Returns and liability to tax
Nothing in this Schedule shall be construed as relieving the holder of a special mining lease from—(a)the obligation to render returns of income in respect of income, other than income attributable to special mining lease operations, derived by or accruing to him; or(b)any liability to tax in respect of income, not attributable to his special mining lease operations, referred to in subparagraph (a).10. Information in returns
The holder of a special mining lease shall specify separately, in a return rendered in respect of his special mining lease operations, the income attributable to those operations and shall furnish information with respect to the following matters—(a)the quantity of chargeable minerals won by him; and(b)the total quantity of those minerals disposed of, the manner of each disposal making up that total and the fair market value in relation to each disposal; and(c)in the case of minerals won that are lost or destroyed, the quantity lost or destroyed and the amount received or receivable under a policy of insurance or otherwise in respect of the minerals; and(d)any amount included in the holder’s income pursuant to subparagraph (2) of paragraph 8; and(e)any interest or other amount derived by the holder from special mining lease operations; and(f)the amount of all allowable deductions claimed; and(g)the amount of each allowable deduction claimed and particulars of that amount; and(h)any asset in relation to which subparagraph (5) of paragraph 5, paragraph 7 or paragraph 8 applies; and(i)the amount, if any, of tax payable; and(j)such other information as the Commissioner may require.11. Maintenance of books in foreign currency
(1)The holder of a special mining lease may, in the first year of assessment after the issue of his special mining lease, elect to maintain all books and records relating to his special mining lease operations in the currency of the United States of America, and any such election shall be final.(2)Where the holder of a special mining lease has made an election referred to in subparagraph (1)—(a)any—(i)income accruing to the holder and attributable to his special mining lease operations; or(ii)expenditure incurred by the holder and constituting an allowable deduction;in a currency other than that of the United States of America shall be shown in all books and records relating to his special mining lease operations in that other currency and in the currency of the United States of America; and(b)the Commissioner shall determine the holder’s taxable income or, as the case may be, his assessed loss, for any year of assessment in the currency of the United States of America; and(c)notice of assessment and of any tax payable shall be given to the holder in the currency of the United States of America; and(d)payment of tax shall be effected in the currency of the United States of America; and(e)the provisions of the special mining lease shall apply in relation to the conversion of any other currency into the currency of the United States of America for the purposes of this paragraph:Provided that, if there are no such provisions in the special mining lease, the conversion shall be made in accordance with such procedure as the Commissioner may direct either generally or in any particular case.Twenty-third Schedule (Section 33)
Determination of additional profits tax in respect of special mining lease area
1. Interpretation
(1)In this Schedule—“allowable deduction” means, subject to subparagraph (2), a deduction allowable under the Twenty-Second Schedule in respect of expenditure incurred;“first accumulated net cash position” means an amount determined in accordance with subparagraphs (2), (4) and (5) of paragraph 3;“first year of assessment”, in relation to a special mining lease area, means the year of assessment in which the special mining lease is issued in respect of that area;“net cash receipts”, in relation to a special mining lease area, means such receipts determined by applying the provision of paragraph 2;“Price Index” means—(a)the monthly level of the United States Industrial Goods Producer Price Index, as reported for the first time for the year of assessment concerned in the publication of the International Monetary Fund known as the “International Financial Statistics” in the section title “Prices, Production, Employment”; or(b)such other monthly index as the Minister may prescribe by notice in the Gazette;“second accumulated net cash position” means an amount determined in accordance with subparagraphs (3), (4) and (5) of paragraph 3;“taxable income” means any taxable income determined by applying paragraph 2 of the Twenty-Second Schedule;“year of production”, in relation to a special mining lease area, means the year of assessment in which minerals from the area are first sold or otherwise disposed of.(2)For the purposes of this Schedule, a deduction made in respect of—(a)expenditure of the kind referred to in subparagraph (b) subparagraph (1) of paragraph 4 of the Twenty-Second Schedule; or(b)a training investment allowance referred to in subparagraph (f) of subparagraph (1) of paragraph 4 of the Twenty-Second Schedule; or(c)any capital redemption allowance referred to in paragraph 5 of the Twenty-Second Schedule;shall not be treated as an allowable deduction.2. Net cash receipts
(1)For the purpose of this Schedule, the net cash receipts from a special mining lease area in a year of assessment shall be the result, which may be a positive or negative figure, of deducting from the income referred to in subparagraph (2) the deductions referred to in subparagraph (3).(2)The income to which subparagraph (1) relates is the aggregate of the following amounts—(a)amounts referred to in subparagraph (1) of paragraph 3 of the Twenty-Second Schedule, other than any amount referred to in subparagraph (i) of subparagraph (c) of subparagraph (1) of that paragraph, accruing in the year of assessment concerned to the holder of the special mining lease or, in the case of joint holders, to each of the holders, from special mining lease operations carried on—(i)in the special mining lease area; or(ii)subject to subparagraph (4), in any other special mining lease area, in the case of an amount referred to in subparagraph (ii) of subparagraph (c) of subparagraph (1) of paragraph 3 of the Twenty-Second Schedule;and(b)any amounts not covered by subparagraph (a), which are the proceeds of sales of material, equipment, plant, facilities, data, information, intellectual property or rights, the acquisition costs of which have previously been deducted in calculating net cash receipts from a special mining lease area; and(c)any amounts of a capital nature received, or any contribution, from any person for the use of facilities, to the extent that they are not included in the amounts referred to in subparagraph (a) or (b).(3)The deductions to which subparagraph (1) relates are the aggregate of—(a)allowable deductions in respect of expenditure which—(i)has been incurred or is deemed to have been incurred in the year of assessment concerned by the holder of the special mining lease or, in the case of joint holders, by each of the holders; and(ii)the Commissioner determines is attributable to the special mining lease area for the purpose of calculating the holder’s liability for income tax;and(b)income tax paid for the year of assessment concerned in respect of the taxable income of the holder of the special mining lease or, in the case of joint holders, of each of the holders, which the Commissioner determines is attributable to the special mining lease area; and(c)capital expenditure incurred solely in relation to a special mining lease area which is allowable as a deduction under paragraph 5 of the Twenty-Second Schedule:Provided that—(i)any capital expenditure in respect of exploration operations which is so allowable and which is incurred prior to the first year of assessment shall be deemed to have been incurred in the first year of assessment for special mining lease operations;(ii)such capital expenditure shall be deducted in full in the year in which it is incurred or deemed to have been incurred.(4)Where a person is the holder of more than one special mining lease in any year of assessment, an amount accruing to him in that year of assessment as provided in subparagraph (b) of subparagraph (2) shall, for the purposes of this paragraph, be treated as accruing to him in equal parts from each of the special mining lease areas.(5)Where a person is the holder of more than one special mining lease in any year of assessment and there are deductions pursuant to subparagraphs (a) and (c) of subparagraph (3) in respect of expenditure not incurred exclusively in respect of any one of the special mining lease areas, the deductions shall be apportioned between the special mining leases, for the purposes of calculating the holder’s net cash receipts, in the same proportions as the income from each special mining lease are determined in accordance with subparagraph (2) of paragraph 2, bears the holder’s total income determined from all the special mining lease areas held by him.3. Determination of first and second accumulated net cash position
(1)For the first year of assessment of a special mining lease area, and for every subsequent year of assessment, there shall be established the first accumulated net cash position and the second accumulated net cash position.(2)The first accumulated net cash position shall be determined accordance with the formula—A (100 per cent + R₁) (100 per cent + P) + B,where—A represents, subject to subparagraphs (4) and (5), the first accumulated net cash position in relation to the special mining lease area concerned at the end of the year of assessment immediately preceding the year of assessment for which the determination is being made;B represents the net cash receipts from the special mining lease area concerned in the year of assessment;P represents the change, expressed as a percentage, in the level of the Price Index between—(a)the last month of the year of assessment immediately preceding the year of assessment for which the determination is being made; and(b)the last month of the year of assessment for which the determination is being made;R₁ represents 15 per centum or such other percentage as may be specified for this purpose in the special mining lease agreement relating to the special mining lease concerned.(3)The second accumulated net cash position shall be determined in accordance with the formula—A (100 per cent + R₂) (100 per cent + P) + B —C,where—A represents, subject to subparagraphs (4) and (5), the second accumulated net cash position in relation to the special mining lease area concerned at the end of the year of assessment immediately preceding the year of assessment for which the determination is being made;B represents the net cash receipts from the special mining lease area concerned in the year of assessment;C represents the amount of additional profits tax, if any, determined in accordance with this Schedule in relation to the first accumulated net cash position for the special mining lease area concerned;P represents the change, expressed as a percentage, in the level of the Price Index between—(a)the last month of the year of assessment immediately preceding the year of assessment for which the determination is being made; and(b)the last month of the year of assessment for which the determination is being made;R₂ represents 20 per centum or such other percentage as may be specified for this purpose in the special mining lease agreement relating to the special mining lease concerned.(4)Where the first accumulated net cash position or the second accumulated net cash position, established in respect of a special mining lease area for a year of assessment, is a positive amount, that accumulated net cash position shall be deemed to be nil for the purpose of determining the equivalent net cash position for the immediately succeeding year of assessment.(5)For the purpose of determining the amount of factor “A” of the formulae referred to in subparagraphs (2) and (3), the year immediately preceding the first year of assessment for a special mining lease area shall be deemed to be a year of assessment for the area and, for that purpose, the first or second accumulated net cash position at the end of that preceding year shall be deemed to be nil.4. Computation of additional profits tax
(1)If the first accumulated net cash position in respect of a special mining lease area for any year of assessment is expressed as a positive amount, the additional profits tax payable by the holder of the special mining lease shall be computed at such percentage of that positive amount as may be determined in accordance with the formula—U = 41,5 – T/ 100 – Twhere—U represents the rate of additional profits tax, expressed as a decimal, determined in relation to the first accumulated net cash position;T represents the rate at which income tax is levied upon holders of special mining leases in terms of the charging Act relating to the year of assessment concerned.(2)If the second accumulated net cash position in respect of a special mining lease area for any year of assessment is expressed as a positive amount, the additional profits tax payable by the holder of the special mining lease shall be the aggregate of—(a)the additional profits tax determined in accordance with subparagraph (1); and(b)27,778 per centum of the positive amount in which the second accumulated net cash position is expressed.5. Information in returns
The holder of a special mining lease shall specify separately, in a return rendered in respect of his special mining lease operations, the net cash receipts from his special mining lease area for the year of assessment to which the return relates, and shall furnish information with respect to the following matters—(a)the amount of all income and deductions taken into account in determining the net cash receipts; and(b)the appropriate change, expressed as a percentage, in the level of the Price Index between the last month of the preceding year of assessment and the last month of the year of assessment to which the return relates; and(c)the values of the first accumulated net cash position and the second accumulated net cash position for the year of assessment for which the return is made and for the immediately preceding year of assessment; and(d)the amount, if any, of additional profits tax computed with reference to the first accumulated net cash position and with reference to the second accumulated net cash position; and(e)the total amount, if any, of additional profits tax payable; and(f)such other information as the Commissioner may require.6. Administration and collection of additional profits tax
Where the holder of a special mining lease has elected, in terms of paragraph 11 of the Twenty-Second Schedule, to maintain his books and records in the currency of the United States of America—(a)the Commissioner shall determine the holder’s accumulated net cash position and his second accumulated net cash in that currency; and(b)notice of assessment and of any additional profits payable shall be given in that currency; and(c)payment of additional profits tax shall be effected in that currency; and(d)the provisions of that paragraph shall apply to the conversion into that currency of amounts expressed in any other currency.Twenty-fourth Schedule (Section 36A)
Tobacco levy
1. Interpretation
In this Schedule—“auction floor” means premises for the sale of auction tobacco;“auction tobacco” means tobacco which is declared in terms of the Tobacco Marketing and Levy Act to be auction tobacco;“auctioneer” means the holder of an auction floor licence issued in terms of the Tobacco Marketing and Levy Act;“buyer” means a person who is—(a)licensed or required to be licensed under the Tobacco Marketing and Levy Act as a buyer of auction tobacco; or(b)registered or required to be registered under the Tobacco Marketing and Levy Act as an authorised buyer of auction tobacco; or“contract tobacco” means tobacco which is subject to a tobacco contract; “contractor” means a buyer who is a party to a tobacco contract;“price”, in relation to auction tobacco that has been sold, means the total amount payable by the purchaser under the agreement of sale;“sell” means sell by auction or sell to a contractor;“tobacco contract” means a contractual arrangement between a contractor and a grower of tobacco, under which the contractor provides or finances the purchase of inputs for the benefit of the grower in return for the grower selling his or her tobacco to the contractor;“tobacco levy” means the levy required to be withheld or recovered in terms of subparagraph (1) of paragraph 2;“Tobacco Marketing and Levy Act” means the Tobacco Marketing and Levy Act .2. Auctioneer or contractor to withhold tobacco levy
(1)Every auctioneer and contractor shall—(a)withhold from the price payable for—(i)auction tobacco sold on his or her auction floor; ora levy at the rate fixed from time to time in the charging Act; and(b)in the case of an auctioneer, before relinquishing possession of any auction tobacco sold to a buyer on his or her auction floor, recover from the buyer a levy at the rate fixed from time to time in the charging Act;and shall pay the amount so withheld or recovered to the Commissioner within the prescribed period after—(i)the date of the sale, in the case of an amount withheld in terms of subparagraph (a); or(ii)his or her relinquishing of possession of the auction tobacco concerned, in the case of an amount withheld in terms of subparagraph (b);or within such further time as the Commissioner may for good cause allow.(2)The tobacco levy shall be withheld in terms of subparagraph (1)(a) notwithstanding any writ of execution or attachment or other process that may have been issued in respect of the auction or contract tobacco concerned, and the levy shall be withheld before any other amounts are withheld or deducted from the price of the auction or contract tobacco in terms of any other law.3. Certificates to be provided to seller
(1)Whenever he or she has withheld any tobacco levy in terms of paragraph 2(a) or recovered any tobacco levy in terms of subparagraph (b) of that paragraph, an auctioneer or contractor shall provide the seller or buyer, as the case may be, of the auction tobacco concerned with a certificate in a form approved by the Commissioner showing—(a)the price at which the auction or contract tobacco was sold; and(b)the amount of tobacco levy withheld.(2)Any payer who fails to provide a payee with a certificate in terms of subparagraph (1), or furnishes an incorrect certificate under that subparagraph, shall be guilty of an offence and liable to a fine not exceeding level five or to imprisonment for a period not exceeding three months or to both such fine and such imprisonment:Provided that, if it is proved that the payer’s conduct was wilful, he shall be liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.4. Returns to be furnished to Commissioner
Payment of tobacco levy by an auctioneer in terms of paragraph 2 shall he accompanied by a return in the form prescribed.5. Penalty for non-payment of tobacco levy
(1)Subject to subparagraph (2), an auctioneer or contractor who fails to withhold, recover or pay to the Commissioner any tobacco levy as provided in paragraph 2 shall be personally liable for the payment to the Commissioner, not later than the date on which the payment should have been made in terms of paragraph 2, of—(a)he amount of the tobacco levy which he or she failed to pay; and(b)a further amount equal to fifteen per centum of the amount referred to in subparagraph (a).(2)If the Commissioner is satisfied in any particular case that a failure to pay any tobacco levy was not due to an intent to evade the provisions of this Schedule, he or she may waive the payment of the whole or such part as he or she thinks fit of the amount referred to in subparagraph (1)(b).6. Refund of tobacco levy
If it is proved to the satisfaction of the Commissioner that any person has paid any amount by way of tobacco levy in excess of the amount properly payable in terms of this Schedule, the Commissioner shall authorise a refund of the amount overpaid:Provided that the Commissioner shall not authorise a refund in terms of this paragraph unless the claim therefor is made within six years of the date of the overpayment”.Twenty-fifth Schedule (Section 36B)
Automated financial transactions tax
1. Interpretation
In this Schedule—“automated teller machine” means an electronic device which enables a customer of a financial institution to perform transactions, including the withdrawal of cash from his account with the institution, directly and without the intervention of a teller or other officer of the financial institution concerned;“financial institution” means—(a)a bank, discount house or finance house registered or required to be registered under the Banking Act ; or(b)a building society registered or required to be registered in terms of the Building Societies Act .2. Liability for automated financial transactions tax
Whenever a customer of a financial institution—(a)withdraws cash from his account with the institution; or(b)effects any debit on his account with the institution;by means of an automated teller machine, the financial institution concerned shall pay to the Commissioner an automated financial transactions tax on each such transaction.3. Period within which automated financial transactions tax to be paid
Automated financial transactions tax shall be paid in terms of paragraph 2 not later than the tenth day of the month following the month in which the transaction in respect of which the tax is payable was effected:Provided that the Commissioner may for good cause allow the tax to be paid within a further time.4. Returns to be furnished to Commissioner
Payment of the automated financial transactions tax in terms of paragraph 2 shall be accompanied by a return in the form prescribed.5. Recovery of automated financial transactions tax from customer
Notwithstanding any other law, a financial institution that has paid automated financial transactions tax on any transaction may recover the tax from the customer on whose account the transaction was effected, either by debiting the customer’s account or in any other manner, in all respects as if the amount of the tax were a fee or charge levied by the financial institution in the ordinary course of its business.6. Penalty for non-payment of automated financial transactions tax
(1)Subject to subparagraph (2), a financial institution that fails to pay to the Commissioner any automated financial transactions tax as provided in paragraph 2 shall be liable to pay, in addition to the tax, a further amount equal to one hundred per centum of the unpaid tax.(2)If the Commissioner is satisfied in any particular case that a failure to pay an automated financial transactions tax was not due to an intent to evade the provisions of this Schedule, he may waive the payment of the whole or such part as he thinks fit of the additional amount referred to in subparagraph (1).7. Refund of automated financial transactions tax
If it is proved to the satisfaction of the Commissioner that any person has paid any amount by way of automated financial transactions tax in excess of the amount properly payable in terms of this Schedule, the Commissioner shall authorize a refund of the amount overpaid:Provided that the Commissioner shall not authorize a refund in terms of this paragraph unless the claim thereof is made within six years of the date of the overpayment.Twenty-sixth Schedule (Section 36C)
Presumptive tax
Part I – Preliminary
1. Interpretation
In this Schedule—“appropriate presumptive tax” means the tax payable under this Schedule by an informal trader, a small-scale miner, an operator of a taxicab or an operator of an omnibus, as the case may be;“commercial goods” means goods which are used mainly for the generation of income or the making of profits;“commercial waterborne vessel” means—(a)any ship, cruiser, boat, houseboat, speedboat, canoe or any other waterborne vessel of whatever description that is employed for the carriage of passengers for profit on inland waters; or“cottage industry” means any of the following trades or industries whether or not they are based in or conducted from the residential premises of the operators thereof, and whether or not the operators use their own tools or equipment—(a)furniture-making or upholstery;(c)any other cottage industry that the Minister may, by notice in a statutory instrument, prescribe;“cross-border trader” means a person who imports commercial goods into Zimbabwe with the intention of carrying on any trade in those goods, but does not, subject to paragraph 13C, include any person registered as an operator in terms of the Value Added Tax Act ;“driving school” means a person registered or required to be registered in terms of the Road Traffic (Driving Schools) Regulations, 1985, published in statutory Instrument 309 of 1985, or any other law substituted for the same;“furniture-making or upholstery” means the manufacture for profit of furniture or the fitting of furniture with padding, springs, webbing or covering for profit;“goods vehicle”, “omnibus” and “taxicab” have the meanings given to those terms by section 2(1) of the Road Motor Transportation Act, 1997 (No. 1 of 1997);“hairdressing salon” means a commercial establishment in which any one or more hairdressers carry on their occupation or business;“holder”, in relation to—(a)a registered mining location, means the person in whose name such location is registered with the mining commissioner or with the Secretary responsible for mines; and(b)an unregistered mining location, any person who, on his or her own behalf, works the location for mining purposes;and, in the case of a deceased person or of a company in liquidation or of any person under a legal disability, means the executor, administrator, liquidator, trustee, tutor, curator or other person who has the administration or control of the property of the person in whose name such location is registered or was worked;“informal cross-border trader” means a cross-border trader who does not furnish to an officer in accordance with paragraph 13C(1)(a) or (b) a tax clearance certificate or proof of registration as a taxpayer in terms of the Income Fax Act ;“informal trader” means an individual who—(a)carries on a trade for his or her own account from which he or she derives a gross income of less than six thousand United States dollars or such other amount as the Minister may prescribe by notice in the Gazette; and(b)has not, in the most recent year of assessment for which he or she could have done so, furnished a return in terms of Part V for the assessment of the income referred to in paragraph (a);and, without limiting the generality of paragraph (a), includes —(c)a hawker or street vendor; and(d)a person who sells articles at a place commonly known as a “people’s market” or a “flea market”; and(e)a person who manufactures or processes any articles in or from residential premises;but does not include a small-scale miner, operator of a taxicab, omnibus or goods vehicle, informal cross-border trader, operator of a restaurant or bottle-store or a cottage industry operator;“intermediary”, in relation to a small-scale miner, means any person who purchases precious metals or precious stones from the small-scale miner and sells them to an agent referred to in paragraph 7(1); “lessor” means—(a)a local authority to which an informal trader pays rent in respect of residential accommodation; or(b)any person, including a local authority, to whom an informal trader pays rent in respect of premises or a place in or from which he carries on his trade as such;“metal fabrication” means the fabrication of articles from metal for profit or any beneficiation of metal whatsoever for profit;“mining location” means any location that is worked for mining purposes, whether or not such location is registered with the mining commissioner or indirectly connected therewith or incidental thereto;“officer”, for the purposes of Part IVB, means an officer of the department of the Zimbabwe Revenue Authority which is declared in terms of the Revenue Authority Act to be responsible for assessing, collecting and enforcing the payment of duties in terms of the Customs and Excise Act .“operator”, in relation to—(a)the operation of a goods vehicle, omnibus or taxicab for the carriage of goods or passengers for hire or reward, means the person in whose name the goods vehicle, omnibus or taxicab is or is required to be registered in terms of the Road Motor Transportation Act, 1997 (No. 1 of 1997);(b)the operation of a driving school, means the person to whom a certificate of registration has been issued in terms of the Road Traffic (Driving Schools) Regulations, 1985, published in statutory Instrument 309 of 1985, or any other law substituted for the same;(c)the operation of a hairdressing salon, means the person who owns or is in charge of the salon, whether or not the salon or any hairdresser therein is licensed as such in terms of the Shop Licences Act or under the by-laws of the local authority in which the salon is located;(d)the operation of a restaurant or bottle store, means the person who owns or is in charge of the restaurant or bottle store, whether or not the restaurant or bottle store is licensed as such in terms of the Shop Licences Act or under the by-laws of the local authority in which the restaurant or bottle store is located, but does not include any such person in possession of—(i)a tax clearance certificate to the effect that he or she has furnished a return under section 37 for the last year of assessment for which such a return is due; or(ii)proof that he or she is a registered operator in terms of the Value Added Tax Act ;(e)the operation of a cottage industry, means the person who owns or is in charge of the cottage industry, whether or not the cottage industry is licensed as such in terms of the Shop Licences Act or under the by-laws of the local authority in which the cottage industry is located, but does not include any such person in possession of—(i)a tax clearance certificate to the effect that he or she has furnished a return under section 37 for the last year of assessment for which such a return is due; or(ii)proof that he or she is a registered operator in terms of the Value Added Tax Act ;(f)the operation of a commercial waterborne vessel, means the person who owns or is in control of the commercial waterborne vessel, whether or not such vessel is registered in terms of the Inland Waters Shipping Act , but does not include any such person in possession of—(i)a tax clearance certificate to the effect that he or she has furnished a return under section 37 for the last year of assessment for which such a return is due; or(ii)proof that he or she is as a registered operator in terms of the Value Added Tax Act ;“precious metals” means gold, silver, platinum, platinoid metals, chrome and tantalite in an unmanufactured state, and includes all such slimes, concentrates, slags, tailings, residues and amalgams as are valuable and contain such precious metals.“precious stones” means rough or uncut diamonds or emeralds or any substances which may be declared by the Minister by notice in the Gazette to be precious stones for the purposes of this Schedule; “quarter” means a period of three months ending on the 31st March, 30th June, 30th September and 31st December in each year;“restaurant or bottle store” includes any bar or beerhall and any other place where food or drink is served to members of the public for payment, whether consumed on or off the premises of the restaurant or bottle store;“small-scale miner” means a holder or tributor of a mining location whose output of precious metals or precious stones from his mining operations do not exceed such level for such period as the Minister shall, by notice in the Gazette prescribe, and includes any intermediary:Provided that, notwithstanding any such prescription, a miner shall be presumed to be a small-scale miner if he or she—(a)does not produce a valid tax clearance certificate to an agent in terms of paragraph 8(1); or(b)produces a valid tax clearance certificate to an agent in terms of paragraph 8(1) relating only to the payment of presumptive tax in terms of this Schedule;“tributor” means the lessee or assignee of the rights of a holder.Part II – Informal traders' presumptive tax
2. Informal traders to notify status
(1)Every informal trader who pays rent to a lessor in respect of residential accommodation, premises or a place referred to in paragraph (a) or (b) of the definition of “lessor” in paragraph 1 shall notify that lessor of his status as an informal trader.(2)A lessor who has been notified by an informal trader of his status as provided in subparagraph (1) shall record the notification, together with the informal trader’s name, address and such other particulars as may be prescribed, and shall forthwith send the Commissioner written notification thereof in a form approved by the Commissioner.3. Collection of presumptive tax from informal trader
(1)Whenever an informal trader pays a lessor who has been notified of his status in terms of paragraph 2 rent in respect of residential accommodation, premises or a place referred to in paragraph (a) or (b) of the definition of “lessor” in paragraph 1, the lessor shall recover from him an additional amount by way of presumptive tax, equal to such percentage of the rent so paid as fixed from time to time in the charging Act;Provided that the lessor shall not recover any such amount where the informal trader produces to the lessor a valid tax clearance certificate in respect of the income received by or accruing to him from his trade.(2)A lessor who has recovered an amount by way of presumptive tax in terms of subparagraph (1) shall pay the amount to the Commissioner within thirty days of the date on which he recovers it or within such further time as the Commissioner may for good cause allow.(3)Payment of informal traders tax in terms of subparagraph (2) shall be accompanied by a return in the form prescribed.4. Certificates to be provided to informal traders who pay presumptive tax
(1)Whenever he has recovered any amount by way of presumptive tax in terms of paragraph 3, a lessor shall provide the informal trader with a certificate in a form approved by the Commissioner showing—(a)the amount of rent paid by the informal trader; and(b)the amount of presumptive tax recovered from him.(2)For the purposes of section 80A or any other purpose, the Commissioner shall, on production to him or her by an informal trader of a certificate referred to in subsection (1), furnish the informal trader with a tax clearance certificate in respect of the presumptive tax shown on the first-mentioned certificate to have been paid.5. Penalty for non-payment of presumptive tax payable in respect of informal traders
(1)Subject to subparagraph (2), a lessor who, having been notified by an informal trader of his status in terms of paragraph 2, fails to recover presumptive tax in terms of paragraph 3(1) and additionally, or alternatively, fails to pay any such tax to the Commissioner in terms of paragraph 3(2) shall be personally liable for the payment to the Commissioner, not later than the date on which the payment should have been made in terms of subparagraph (2) of that paragraph, of—(a)the amount of presumptive tax which he failed to pay; and(b)a further amount equal to the amount referred to in subparagraph (a).(2)If the Commissioner is satisfied in any particular case that a failure to pay any presumption tax under this Part was not due to an intent to evade the provisions of this Part, he may waive the payment pf the whole or such part as he thinks fit of the amount referred to in paragraph (1)(b).6. Effect on lease of failure to pay presumptive tax in respect of informal traders
Notwithstanding any other law or any provision of a lease between a lessor and an informal trader—(a)payment by an informal trader of rent for any premises or place referred to in paragraph (a) or (b) of the definition of “lessor” in paragraph 1 shall not constitute a valid payment under the lease concerned unless the payment is accompanied by any informal traders tax required to be paid in terms of this Schedule;(b)a failure or refusal on the part of an informal trader to pay informal traders tax required to be paid in terms of this Schedule shall constitute a breach of a fundamental term of the lease concerned, entitling the lessor to terminate it without noticePart III – Small-scale miners’ presumptive tax
7. Agents for collection of presumptive tax from small-scale miners
(1)The following shall be agents for the collection of presumptive tax from small-scale miners under this Part—(a)the Minerals Marketing Corporation of Zimbabwe, established by the Minerals Marketing Corporation of Zimbabwe Act ; and(b)the Reserve Bank of Zimbabwe established by the Reserve Bank of Zimbabwe Act , in its capacity as a buyer of precious metals; and(c)Fidelity Printers and Refiners (Pvt) Ltd; and(d)any holder of a gold-buying permit granted in terms of section 5 of the Gold Trade (Gold-buying Permits for Concession Areas) Regulations, 2002, published in statutory Instrument 328 of 2002](/akn/zw/act/si/2002/328), or the agent of such a permit-holder appointed in terms of section 8 of those regulations; and(e)such other person as the Commissioner may in writing appoint for the purposes of this Part.(2)Every agent who buys any precious metals or precious stones from a small-scale miner shall, no later than thirty days from the date of commencement of this Schedule, or, in the case of a small-scale miner from whom he or she has not, before that date, bought any precious metals or precious stones, thirty days from the date when he or she buys precious metals or precious stones from a small-scale miner for the first time, as the case may be, notify the Commissioner in writing of the name, home address and address of the mining location of the small-scale miner concerned.(3)An agent shall maintain such records of any small-scale miner from whom he buys any precious metals or precious stones as the Commissioner may require from time to time.8. Withholding or presumptive tax from amounts payable to small-scale miners
(1)Subject to this paragraph, unless a small-scale miner produces to the agent to whom he or she sells any precious metals or precious stones a valid tax clearance certificate in respect the income earned or to be earned from the sale of the precious metals or precious stones in question, the agent shall withhold from the gross amount payable to the small-scale miner for the sale of the precious metals or precious stones in question an amount equal to such percentage of the amount so paid as is fixed from time to time in the charging Act and shall remit each amount so withheld to the Commissioner on or before the tenth day of the month following that in which the payment was made:Provided that the Commissioner may, for good cause shown, allow the tax to be paid over at a later date.(2)The amounts of tax withheld in terms of subparagraph (1) due shall be payable at any branch, division or department of the Zimbabwe Revenue Authority responsible for assessing, collecting and enforcing the payment of taxes under this Act.(3)Where an agent has withheld any amount in terms of subparagraph (1) he shall furnish the small-scale miner concerned with a certificate, in a form approved by the Commissioner, showing the amount so withheld.(4)For the purposes of section 80A or any other purpose, the Commissioner shall, on production to him or her by a small-scale miner of a certificate referred to in subsection (2), furnish the small-scale miner with a tax clearance certificate in respect of the presumptive tax shown on the first-mentioned certificate to have been paid.9. Interest on overdue presumptive tax payable in respect of small-scale miners
If presumptive tax is not paid timeously in terms of paragraph 8, interest, calculated at a rate to be fixed by the Minister by statutory instrument, shall be payable on so much of the tax as remains unpaid during the period beginning on the day next following the last day provided for its payment and ending on the date the tax is paid in full:Provided that in special circumstances the Commissioner may extend the time for payment of the tax without charging interest.10. Penalty for non-payment of presumptive tax payable in respect of small-scale miners
(1)Subject to subparagraph (2), an agent who fails to recover presumptive tax in terms of paragraph 8(1) and additionally, or alternatively, fails to pay any such tax to the Commissioner in terms of that paragraph shall be personally liable for the payment to the Commissioner, not later than the date on which the payment should have been made in terms of that paragraph, of—(a)the amount of presumptive tax which he failed to pay; and(b)a further amount equal to of the amount referred to in subparagraph (a).(2)If the Commissioner is satisfied in any particular case that a failure to pay any presumptive tax under this Part was not due to an intent to evade the provisions of this Part, he may waive the payment of the whole or such part as he thinks fit of the amount referred to in paragraph (1)(b).Part IV – Transport and driving school operators’ presumptive tax
11. Payment of presumptive tax by operators of driving schools and transport services
(1)Subject to this paragraph, no later than twenty days after the end of each quarter, every operator of—(a)a taxicab for the carriage of passengers for hire or reward having seating accommodation for not more than seven passengers, shall pay the amount of presumptive tax that is fixed from time to time in the charging Act; or(b)an omnibus for the carriage of passengers for hire or reward having seating accommodation for not less than eight or more than fourteen passengers, shall pay the amount of presumptive tax that is fixed from time to time in the charging Act; or(c)an omnibus for the carriage of passengers for hire or reward having seating accommodation for not less than fifteen or more than twenty-four passengers, shall pay the amount of presumptive tax that is fixed from time to time in the charging Act; or(d)an omnibus for the carriage of passengers for hire or reward having seating accommodation for not less than twenty-five or more than thirty-six passengers, shall pay the amount of presumptive tax that is fixed from time to time in the charging Act; or(e)an omnibus for the carriage of passengers for hire or reward having seating accommodation for not less than thirty-seven passengers, shall pay the amount of presumptive tax that is fixed from time to time in the charging Act; or(f)a goods vehicle for the carriage of goods for hire or reward having a carrying capacity—(i)of more than ten tonnes but less than twenty tonnes; or(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; or(iii)of twenty tonnes or more;shall pay the amount of presumptive tax that is fixed from time to time in the charging Act; or(g)a driving school providing driving tuition—(i)for class 4 vehicles only; or(ii)for class 1 and 2 vehicles (whether or not in addition to providing driving tuition for other classes of vehicles);shall pay the amount of presumptive tax that is fixed from time to time in the charging Act:Provided that the Commissioner may, for good cause shown, allow the tax to be paid over at a later date.(2)The amounts of presumptive tax payable in terms of subparagraph (1) shall be payable at any branch, division or department of the Zimbabwe Revenue Authority responsible for assessing, collecting and enforcing the payment of taxes under this Act.(3)When an operator has paid the amount of presumptive tax due in terms of subparagraph (1), the Commissioner shall furnish the operator concerned with the appropriate tax clearance certificate.12. Interest on overdue presumptive tax payable in respect of operators of passenger transport services
If presumptive tax is not paid timeously in terms of paragraph 12, interest, calculated at a rate to be fixed by the Minister by statutory instrument, shall be payable on so much of the tax as remains unpaid during the period beginning on the day next following the last day provided for its payment and ending on the date the tax is paid in full:Provided that in special circumstances the Commissioner may extend the time for payment of the tax without charging interest.12A.
(1)Every tax clearance certificate issued to the operator of an omnibus or taxicab shall be carried in the omnibus or taxicab to which it relates.(2)If any tax clearance certificate is lost or destroyed or any essential particulars thereon have become defaced or if the certificate is dilapidated, the Commissioner-General, on application by the holder thereof and on payment of the fee, if any, prescribed, shall issue a duplicate tax clearance certificate.(3)A police officer may demand that any operator or person in charge of an omnibus or taxicab produce a tax clearance certificate as proof that he or she has paid the presumptive tax payable in respect of the omnibus or taxicab.(4)Subject to subsection (5), any person in charge of an omnibus or taxicab who does not carry a tax clearance certificate as required by subparagraph (1) or who fails to produce it as required by subparagraph (3) shall, whether or not he or she is the operator of the omnibus or taxicab, be guilty of an offence and liable to a fine equal to the amount of the presumptive tax payable for the omnibus or taxicab or, in default of payment, to imprisonment for a period not exceeding six months:Provided that if the failure to carry a tax clearance certificate was due to its loss or destruction and not to non-payment of presumptive tax, a police officer may require the person in charge of the omnibus or taxicab concerned or, if he or she is not the operator of the omnibus or taxicab, the operator thereof, to produce a duplicate certificate within seven days at such place as the police officer shall specify.(5)A person referred to in subparagraph (4) may sign and deliver to the police officer referred to in that subparagraph a document admitting that he or she is guilty of the said offence and deposit with such officer a fine equal to the amount of the presumptive tax payable for the omnibus or taxicab, and such person shall thereupon, subject to subparagraph (6), not be required to appear in court to answer the charge of having committed the said offence.(6)Section 356 of the Criminal Procedure and Evidence Act shall apply to the procedure to be followed in relation to an admission of guilt made under subparagraph (4).(7)The Zimbabwe Republic Police shall furnish to the Commissioner-General of every person who has compounded or been convicted of an offence in terms of this paragraph.Part IVA – Hairdressing salon operators presumptive tax
13A. Payment of presumptive tax by hairdressing salon operators
(1)Subject to this paragraph, no later than twenty days after the end of each quarter, every operator of a hairdressing salon shall pay the amount of presumptive tax that is fixed from time to time in the Charging Act.Provided that the Commissioner may, for good cause shown, allow the tax to be paid over at a later date.(2)The amount of presumptive tax payable in terms of subparagraph (1) shall be payable at any branch, division or department of Zimbabwe Revenue Authority responsible for assessing, collecting and enforcing the payment of taxes under this Act or through any agent of the Zimbabwe Revenue Authority notified by the Commissioner(3)Where an operator of a hairdressing salon has paid the amount of presumptive tax due in terms of subparagraph (1), the Commissioner shall furnish the operator with the appropriate tax clearance certificate.13B. Interest on overdue hairdressing salon operators presumptive tax
If presumptive tax is not paid timeously in terms of paragraph 13A, interest, calculated at a rate to be fixed by the Minister by statutory instrument shall be payable on so much of the tax as remains unpaid during the period beginning on the day next following the last day provided for its payment and ending on the date the tax is paid in full:Provided that in special circumstances the Commissioner may extend the time for payment of the tax without charging interest.Part IVB – Informal cross-border traders’ presumptive tax
13C. Payment of presumptive tax by informal cross-border traders
(1)Whenever a cross-border trader imports any commercial goods into Zimbabwe, he or she shall pay to the officer concerned a presumptive tax of such percentage of the value for duty purposes of the commercial goods concerned as is fixed from time to time in the Charging Act, unless the cross-border trader produces to the officer—(a)a tax clearance certificate to the effect that he or she has furnished a return under section 37 for the last year of assessment for which such a return is due; or(b)proof that he or she is a registered taxpayer in terms of the Income Tax Act Provided that, where a person produces a tax clearance certificate or proof of registration as a tax-payer referred to in paragraph (a) or (b), but he or she is in arrears of any tax or duty payable under this Act, the Value Added Tax Act or the Customs and Excise Act , this Part shall apply to such person as if he or she was an informal cross-border trader.(2)Where an informal cross-border trader has paid any amount of presumptive tax in terms of subparagraph (1), the officer concerned shall furnish the informal cross-border trader with the appropriate tax clearance certificate.(3)Where no payment of presumptive tax is made in terms of this paragraph the officer concerned shall treat the commercial goods in question as if they are goods in respect of which no due entry has been made in terms of the Customs and Excise Act , and the appropriate provisions of that Act shall apply accordingly to those goods.Part IVD – Restaurant or bottle-store operators’ presumptive tax
13D. Payment of presumptive tax by restaurant or bottle store operators
(1)Subject to this paragraph, no later than ten days after the end of each quarter, every operator of a restaurant or bottle store shall pay the amount of presumptive tax that is fixed from time to time in the Charging Act:Provided that the Commissioner may, for good cause shown, allow the tax to be paid over at a later date.(2)The amount of presumptive tax payable in terms of subparagraph (1) shall be payable at any branch, division or department of the Zimbabwe Revenue Authority responsible for assessing, collecting and enforcing the payment of taxes under this Act or through any agent of the Zimbabwe Revenue Authority notified by the Commissioner.(3)Where an operator of a restaurant or bottle store has paid the amount of presumptive tax due in terms of subparagraph (1), the Commissioner shall furnish the operator with the appropriate tax clearance certificate.13E. Interest on overdue restaurant or bottle store operators’ presumptive tax
If presumptive tax is not paid timeously in terms of paragraph 13D, interest, calculated at a rate to be fixed by the Minister by statutory instrument, shall be payable on so much of the tax as remains unpaid during the period beginning on the day next following the last day provided for its payment and ending on the date the tax is paid in full:Provided that in special circumstances the Commissioner may extend the time for payment of the tax without charging interest.Part IVE – Cottage industry operators’ presumptwe tax
13E. Payment of presumptive tax by cottage industry operators
(1)Subject to this paragraph, no later than ten days after the end of each quarter, every operator of a cottage industry shall pay the amount of presumptive tax that is fixed from time to time in the Charging Act:Provided that the Commissioner may, for good cause shown, allow the tax to be paid over at a later date.(2)The amount of presumptive tax payable in terms of subparagraph (1) shall be payable at any branch, division or department of the Zimbabwe Revenue Authority responsible for assessing, collecting and enforcing the payment of taxes under this Act or through any agent of the Zimbabwe Revenue Authority notified by the Commissioner.(3)Where an operator of a cottage industry has paid the amount of presumptive tax due in terms of subparagraph (1), the Commissioner shall furnish the operator with the appropriate tax clearance certificate.13F. Interest on overdue cottage industry operators ‘presumptive tax
If presumptive tax is not paid timeously in terms of paragraph 13E, interest, calculated at a rate to be fixed by the Minister by statutory instrument, shall be payable on so much of the tax as remains unpaid during the period beginning on the day next following the last day provided for its payment and ending on the date the tax is paid in full:Provided that in special circumstances the Commissioner may extend the time for payment of the tax without charging interestPart IVF – Commercial waterborne vessel operators’ presumptive tax
13G. Payment of presumptive tax by operators of commercial waterborne vessels
(1)Subject to this paragraph, no later than ten days after the end of each quarter, every operator of a commercial waterborne vessel shall pay the amount of presumptive tax that is fixed from time to time in the Charging Act.Provided that the Commissioner may, for good cause shown, allow the tax to be paid over at a later date.(2)The amount of presumptive tax payable in terms of subparagraph (1) shall be payable at any branch, division or department of the Zimbabwe Revenue Authority responsible for assessing, collecting and enforcing the payment of taxes under this Act or through any agent of the Zimbabwe Revenue Authority notified by the Commissioner.(3)Where an operator of commercial waterborne vessel has paid the amount of presumptive tax due in terms of subparagraph (1), the Commissioner shall furnish the operator with the appropriate presumptive tax clearance certificate.Part V – General
13. When presumptive taxpayers exempt from submitting returns
(1)For the avoidance of doubt, but subject to subparagraphs (2) and (3), it is declared that the payment of any amount by way of presumptive tax in terms of this Schedule does not exempt the presumptive taxpayer concerned from the provisions of this Act relating to the furnishing of returns and the payment of tax:Provided that, without prejudice to the obligation of the presumptive taxpayer to render the return or make the arrangements mentioned in paragraphs (a) and (b) below, a presumptive taxpayer shall be entitled to be issued with a tax clearance certificate in respect of his or her payment of presumptive tax in terms of this Schedule, notwithstanding that he or she has not—(a)furnished a return under section 37 for the last year of assessment for which such a return is due; or(b)made arrangements satisfactory to the Commissioner-General for the furnishing of a return referred to in paragraph (a).(2)Where the Minister prescribes a level of output of precious metals or precious stones for the purposes of the definition of “small-scale miner” contained in paragraph 1, and a holder or tributor of any mining location is deemed to be a small-scale miner because his or her output of precious metals or precious stones is below the level prescribed, such small-scale miner shall, if his or her investment in any such mining location is the sole source of his or her income, be exempt from furnishing a return under section 37.(3)The Minister may, by notice in the Gazette, prescribe the level turnover for any period specified in that notice below which the operator of an omnibus or taxicab for the carriage of passengers for hire or reward shall be exempt from furnishing a return under section 37.14. Refund of excess payment of presumptive tax
If it is proved to the satisfaction of the Commissioner that any person has paid an amount by way of presumptive tax under this Schedule in excess of the amount properly payable in terms of this Part, the Commissioner shall authorise a refund of the amount overpaid;Provided that the Commissioner shall not authorise a refund in terms of this paragraph unless the claim therefore is made within six years of the date of the overpayment.15. Interest on unpaid penalties
Twenty-seventh Schedule (Section 36D)
Demutualisation levy
1. Interpretation
(1)In this Schedule—“affected company” means an insurance company which carries on insurance business in Zimbabwe consequent upon a demutualisation scheme effected by a mutual society;“Commissioner of Insurance” means the person referred to in paragraph (a) of subsection (1) of section 4 of the Insurance Act ;“demutualisation levy” means the levy required to be paid in terms of paragraph 2;“demutualisation scheme” means a scheme which—(a)is sanctioned by the Minister in accordance with section 33 of the Insurance Act ; and(b)results in—(i)all or most of the insurance business of a mutual society being transferred to an insurance company; or(ii)the conversion of a mutual society into an insurance company, to the extent that such a conversion may be permitted in terms of the Insurance Act ;by combination of the results referred to in subparagraph (i) and (ii);“free reserve” means funds accumulated by a mutual society which represent the excess of assets over liabilities, the value of which is determined in accordance with paragraph 3;“free share” means a share allotted and issued in terms of a demutualisation scheme to a member of the affected company concerned, but does not include a share issued for the purposes of raising capital for the affected company;“insurance business” has the meaning assigned to it in section 3 of the Insurance Act ;“insurance company” has the meaning assigned to it in subsection (1) of section 11 of the Insurance Act ;“mutual society” means—(a)a mutual insurance society as defined in subsection (2) of section 11 of the Insurance Act ; or(b)an existing society as defined in subsection (1) of section II or subsection (1) of section 90 of the Insurance Act ;“share” includes any share, stock, security, debenture or other interest capable of being sold in a stock exchange, share market or otherwise;“Zimbabwean member” means a member or former member of a mutual society—(a)to whom free shares are allotted in terms of a demutualisation scheme concluded by the mutual society; and(b)who is regarded as being resident in Zimbabwe in accordance with subparagraph (2).(2)A member or former member of a mutual society shall be regarded as being resident in Zimbabwe for the purposes of this Schedule if—(a)in the case of an individual, he is ordinarily resident in Zimbabwe; or(b)in the case of a company or a trust, it is effectively managed in Zimbabwe; or(c)in the case of any person whose place of residence or control cannot, in the Commissioner’s opinion, be determined by the affected company concerned, his last address recorded in the mutual society’s records is in Zimbabwe.2. Demutualisation levy
Subject to this Schedule, a demutualisation levy shall be paid, at the rate fixed from time to time in the charging Act, upon an amount calculated according to the following formula in respect of each Zimbabwean member of a mutual society who is allotted free shares pursuant to a demutualisation scheme—A x B / Cwhere—A represents the total free reserves of the mutual society concerned, calculated in accordance with paragraph 3;B represents the value of the free shares allotted to the Zimbabwean member concerned;C represents the total value of the free shares allotted to all members of the mutual society concerned.3. Determination of free reserve
(1)Subject to subparagraph (3), the value of the free reserve of a mutual society shall be determined for the purposes of paragraph 2 from the statements deposited with the Commissioner of Insurance by the affected company concerned in terms of paragraph (a) of section 34 of the Insurance Act .(2)The date as at which the free reserve of a mutual society shall be determined for the purposes of paragraph 2 shall be—(a)the date on which the mutual society’s insurance business is transferred to the affected company or, where the business is transferred on different dates, such of those dates as the Commissioner of Insurance may approve; or(b)the date on which the mutual society is convened into an insurance company; as the case may be.(3)The value of the free reserve of a mutual society, as determined in accordance with subparagraphs (1) and (2), shall be increased by fifteen per centum per annum from the date referred to in subparagraph (2) until the date on which free shares are issued to the Zimbabwe member concerned.4. Responsibility for paying demutualisation levy
Subject to paragraph 9, the affected company concerned shall be responsible for paying the demutualisation levy on behalf of its Zimbabwe members.5. Payment of demutualisation levy
(1)An affected company that is responsible for paying any demutualisation levy shall pay the levy to the Commissioner within three months after issuing to the Zimbabwean member concerned the free shares on which the levy is calculated, or within such further time as the Commissioner may for good cause allow.(2)Payment of any demutualisation levy in terms of subparagraph (1) shall be accompanied by a return in the form prescribed.6. Recoupment of levy paid by affected company
(1)An affected company that has paid any demutualisation levy on behalf of a Zimbabwean member shall be entitled to recover the amount paid from the member concerned.(2)Without derogation from the generality of subparagraph (1), an affected company may effect a recovery in terms of that subparagraph by withholding from the free shares issued to the Zimbabwean member concerned such number of shares as is equal in value to the amount of demutualisation levy paid on that member’s behalf:Provided that—(i)the affected company shall hold and dispose of any shares so withheld in accordance with the Insurance Act ;(ii)any shares so withheld shall be counted for the purposes of assessing the Zimbabwean member’s liability for demutualisation levy.7. Assessment by Commissioner
Where—(a)the full amount of demutualisation levy has not been paid within the period referred to in paragraph 5; or(b)an affected company is unable to assess the amount of demutualisation levy payable by any of its Zimbabwean membersthe Commissioner may make an assessment of the amount payable and give notice thereof to the affected company concerned, and the affected company shall be liable to pay that amount accordingly.8. Interest and penalties for late payment or non-payment of demutualisation levy
(1)Interest shall be payable at the prescribed rate on any amount of demutualisation levy that is not paid within the period referred to in paragraph 5.(2)Without derogation from paragraph 7 or subparagraph (1), an affected company that fails to pay any amount of demutualisation levy within the period referred to in paragraph 5 shall become personally liable for the payment to the Commissioner, by not later than three months after the date on which the levy should have been paid, of—(a)the demutualisation levy which should have been paid; and(b)a further amount equal to fifteen per centum of the demutualisation levy that should have been paid.(3)If the Commissioner is satisfied in any particular case that a delay in paying any amount of demutualisation levy, or a failure to pay such an amount, was not due to any intent to evade the provisions of this Schedule, he may waive the payment of the whole or such part as he thinks fit or repay the whole or such part as he thinks fit of any interest or amount referred to in subparagraph (1) or (2).9. Liability of Zimbabwean member for payment of demutualisation levy
(1)Without derogation from paragraphs 7 and 8, if an affected company has failed to pay any amount of demutualisation levy on behalf of a Zimbabwean member to whom the company has issued free shares, the Commissioner may, by written notice to the Zimbabwean member concerned, require him to pay the amount within such reasonable period, being not less than three months, as the Commissioner may specify in the notice, and the Zimbabwean member shall thereupon become liable to pay the amount accordingly.(2)Subparagraph (2) of paragraph 5 and paragraphs 7 and 8 shall apply, mutatis mutandis, in respect if a Zimbabwean member who becomes liable to pay any amount in terms of subparagraph (1).10. Refund of overpayments
(1)If it is proved to the satisfaction of the Commissioner that any person has been charged with demutualisation levy in excess of the amount properly chargeable in terms of this Schedule, the Commissioner shall authorize a refund in so far as it has been overpaid:Provided that the Commissioner shall not authorise a refund in terms of this paragraph unless a claim for it is made within six years of the date of payment of the levy.Twenty-eight Schedule (Section 36E)
Carbon tax
1. Interpretation
In this Schedule—“carbon tax certificate” means a certificate of payment of carbon tax issued in terms of paragraph 4; “liable person” means a person liable to pay carbon tax in terms of paragraph 3, but does not, for the purposes of this Schedule, include—(a)a diplomatic mission which, or any person connected with that mission who, enjoys the privileges and immunities provided under the Privileges and Immunities Act ;(b)any international or regional organisation upon which the President has conferred any of the privileges and immunities set out in the Third Schedule to the Privileges and Immunities Act ;(c)the State or any local authority in respect of any motor vehicle owned by the State or the local authority.“motor vehicle” has the meaning given to that term in section 2(1) of the Vehicle Registration and Licensing Act ;“NOCZIM” oil company or other person or entity engaged in oil procurement” means a company, person or entity licensed or authorised by the Ministry responsible for energy to import petroleum products in bulk or purchase or import them for resale;“petroleum product” means—(a)leaded or unleaded petrol; or(b)the fuel designed for use in a compression—ignition engine, commonly known as diesel fuel; or(c)any refined petroleum capable of being used as a motor-spirit; but does not include aviation fuel, illuminating paraffin or power paraffin;“State oil procurement entity” means NOCZIM or any other oil procurement entity formed by the State in addition to or substitution for NOCZIM.2. Payment of carbon tax under section 22E(1)
Whenever an oil company or other person or entity engaged in oil procurement or wishing to use the petroleum product for his or her own consumption imports any petroleum product, he or she shall pay the required carbon tax to the Zimbabwe Revenue Authority at the port of entry of the petroleum product:Provided that the Minister may, by notice in the Gazette, exempt any power generation project (as defined in section 14(1) of the Finance Act) from liability for carbon tax under this paragraph for a temporary or indefinite period, and may backdate such exemption.3. Liability for and payment of carbon tax by visitors to Zimbabwe
(1)A visitor to Zimbabwe who uses within Zimbabwe a motor vehicle registered outside Zimbabwe shall—(a)upon entering Zimbabwe; and(b)for each month or part of a month during which he visits Zimbabwe;pay the required carbon tax in respect of such vehicle to the Zimbabwe Revenue Authority, in United States dollars, Euros or any other currency denominated under the Exchange Control (General) Order, 1996 (Statutory Instrument 110 of 1996), at the rate of exchange specified in the Exchange Control (Exchange Rate) Direction, 2002 (Statutory Instrument 223 of 2002) or the equivalent international cross rate of exchange if the tax is paid otherwise than in United States dollars.(2)Carbon tax shall be payable at any port of entry or branch or division department of the Zimbabwe Revenue Authority responsible for assessing, collecting and enforcing the payment of taxes under this Act:Provided that if a visitor to Zimbabwe stays in Zimbabwe for a longer period than the period for which he or she originally paid carbon tax he or she shall, at any time before leaving Zimbabwe, pay the additional carbon tax in respect of such vehicle to the Zimbabwe Revenue Authority in foreign currency as provided in this paragraph.(3)Any person who fails to comply with subparagraph (1) or (2) shall incur a penalty of two per centum of the carbon tax due for every week or part of a week during which the default continues, and every such penalty shall be recoverable by the Commissioner by action in any court of competent jurisdiction.4. Carbon tax receipt
(1)A liable person shall, when paying over any carbon tax in terms of this Schedule, complete a prescribed form.(2)Upon completion of the prescribed form and payment of the required carbon tax, the certifying authority shall issue him or her with a carbon tax receipt.(3)A police officer may demand that any liable person produce a carbon tax receipt as proof that he or she has paid the carbon tax.(4)If any carbon tax receipt is lost or destroyed or any essential particulars thereon have been defaced or if the certificate is dilapidated, the issuing authority, on application by the holder thereof and on payment of the fee, if any, prescribed, shall issue a duplicate carbon tax receipt.5. Offence of failing to produce carbon tax receipt and compromise thereof
(1)Subject to subparagraph (2), any person in charge of a motor vehicle liable for carbon tax who does not produce a carbon tax receipt when required to do so under paragraph 4, shall, whether or not he or she is the liable person, be guilty of an offence and liable to a fine equal to the amount of the carbon tax payable for the vehicle or, in default of payment, to imprisonment for a period not exceeding six months:Provided that if the failure to produce the carbon tax receipt was due to its loss or destruction and not to non-payment of carbon tax, a police officer or officer of the Authority may require the person in charge of the motor vehicle concerned or, if he or she is not the owner of the vehicle, the owner thereof, to produce a duplicate receipt within seven days at such place as the police officer shall specify.(2)A person referred to in subparagraph (1) may sign and deliver to the police officer referred to in that subparagraph a document admitting that he or she is guilty of the said offence and deposit with such officer a fine equal to the amount of the carbon tax payable for the vehicle, and such person shall thereupon, subject to subparagraph (3), not be required to appear in court to answer the charge of having committed the said offence.(3)Section 356 of the Criminal Procedure and Evidence Act shall apply to the procedure to be followed in relation to an admission of guilt made under subparagraph (2).(4)The Zimbabwe Republic Police shall furnish to the Commissioner particulars of every person who has compounded or been convicted of an offence in terms of this paragraph.Twenty-Ninth Schedule (Section 36F)
Thirtieth Schedule (Section 36G)
Intermediated money transfer tax
1. Interpretation
(1)In this Schedule—“automated teller machine” has the meaning given to that term in paragraph 1 of the Twenty-Fifth Schedule;“company” means a company or private business corporation registered or incorporated under the enactment providing for the registration or incorporation of such entities;“financial institution” means—(a)any banking institution registered or required to be registered in terms of the Banking Act ; or(b)any building society registered or required to be registered in terms of the Building Societies Act ; or(c)the Reserve Bank of Zimbabwe; or(d)the People’s Own Savings Bank of Zimbabwe established in terms of the People’s Own Savings Bank of Zimbabwe Act ; or(e)the Zimbabwe Development Bank established in terms of the Zimbabwe Development Bank Act ; or(f)the successor company to the Agricultural Finance Corporation formed under the Agricultural Finance Act ; or(g)the postal company licensed in terms of section 113 of the Postal and Telecommunications Act to provide the postal services previously carried on by the Posts and Telecommunications Corporation established by the repealed Posts and Telecommunications Corporation Act , or any person licensed in terms of the Postal and Telecommunications Act to provide postal services;(h)any provider of a mobile banking service;"marketable security” has the meaning given to it by section 2 of the Capital Gains Tax Act ;“mobile banking service” means a service that allows customers of a financial institution or cellular telecommunication or telecommunication service operator licensed or required to be licensed under the Postal and Telecommunications Act or other intermediary to conduct any number of financial transactions involving the transfer of money through a mobile device such as a mobile telephone or personal digital assistant, and for which the financial institution, operator or intermediary involved receives a fee, commission, premium, interest or other reward;“money” means—(a)coins of current mass or bank notes which the Reserve Bank of Zimbabwe has issued in Zimbabwe in accordance with Part VI of the Reserve Bank of Zimbabwe Act and which have not been demonetized.(b)any—(i)coin, other than a coin made wholly or mainly from a precious metal, or bank note which is the currency of any country, other than Zimbabwe, and which is used or circulated or is intended for use or circulation as currency;(ii)bill of exchange, promissory note, bank draft, postal order or money order;except when disposed of or imported as a collector’s piece, investment article or item of numismatic interest;“money market instrument” means any—(a)Treasury Bill, Treasury Bond, Reserve Bank of Zimbabwe Bill or Reserve Bank of Zimbabwe Bond;(b)corporate bill or bond, that is, any bill or bond issued in the name of a company;(c)negotiable certificate of deposit or fixed deposit instrument;“nostro foreign currency account” means any account designated in terms of Exchange Control Directive RT/120 of 2018, held with a financial institution in Zimbabwe, in which money in the form of foreign currency is deposited from offshore or domestic sources;“pension fund” means—(a)the National Social Security Authority established by the National Social Security Authority Act ;(b)any pension fund registered as such in terms of the Pension and Provident Funds Act ;“remuneration” has the meaning given to it by paragraph 1(1) of the Thirteenth Schedule of the Act (whether or not such remuneration is subject to employees’ tax);“specified trust account” means any trust account required to be opened and operated in terms of the Insurance Act , the Legal Practitioners Act , the Estate Agents Act (No. 6 of 1999) or the Estate Administrators Act (No. 16 of 1998);“transaction on which the tax is payable” does not include any of the following transactions—(a)the transfer of money for the purchase or sale of marketable securities;(b)the transfer of money for the purchase or redemption of money market instruments;(c)the transfer of money on payment of remuneration;(d)the transfer of money to or from the Zimbabwe Revenue Authority for the payment or refund of any tax, duty or other charges;(e)the intra-corporate transfer of money, that is to say, transfer of money between the treasury account and any trading account held in the name of the same company;(f)the transfer of money from (but not into) specified trust accounts;(g)the transfer of money into and from nostro foreign currency accounts;(h)the transfer of money by Government from the Consolidated Revenue Fund or from funds established in terms of section 18 of the Public Finance Management Act (No. 11 of 2009);(i)the transfer of money to any pension fund or to beneficiaries of such a fund;(j)the transfer of money for the procurement, production or sale (wholesale or retail) of a petroleum product by a petroleum company licensed in terms of Part VI of the Petroleum Act (No. 11 of 2006);(k)the transfer of money between an individual’s mobile wallet account and his or her bank account;(l)the transfer of money from a medical aid society registered in terms of the Medical Services Act to a medical service provider in settlement of a claim for services rendered by that provider;(m)the transfer of money in the form of insurance premiums—(i)by insurance brokers to insurance companies; and(ii)by insurance companies to reinsures, retrocessionanaires and asset managers registered in terms of the Asset Management Act (No. 16 of 2004);(n)the transfer of money to producers, sellers or exporters of minerals by the Minerals Marketing Corporation of Zimbabwe pursuant to the Minerals Marketing Corporation Act ;(o)the transfer of money to producers or sellers of gold by Fidelity Printers and Refiners (Private) Limited;(p)the transfer of money to a successor company of the Zimbabwe Electricity Supply Authority (referred to in section 75 of the Electricity Act from a trust fund credited with prepayments for electricity made by a mobile banking service provider;(q)the transfer of money by travel agents to airlines on the purchase and administration of air tickets;(r)the transfer of money involving a transaction other than one mentioned in the foregoing paragraphs, if the value of transaction is ten United States dollars or below.“transfer” means transfer physically, electronically or by any other means.(2)Where a customer of a financial institution effects a transfer of money to another person by means of an automated teller machine belonging to or leased by or under the control of the financial institution, the financial institution shall be deemed to have mediated the transfer of that money.2. Liability for intermediated money transfer tax
(1)Whenever a financial institution mediates the transfer of money otherwise than by cheque—(a)between two persons; or(b)from one person to two or more persons; or(c)from two or more persons to one person;the financial institution concerned shall pay to the Commissioner an intermediated money transfer tax on each such transaction.(2)Where a financial institution mediates the transfer of money to another financial institution on behalf of any of the persons for whom it acts as intermediary, the other financial institution shall not be liable for intermediated money transfer tax.3. Period within which intermediated money transfer tax to be paid
Intermediated money transfer tax shall be paid in terms of paragraph 2 not later than the tenth day of the month following the month in which the transaction respect of which the tax is payable was effected.Provided that the Commissioner may for good cause allow the tax to be paid within any further time.4. Returns to be furnished to Commissioner
Payment of the intermediated money transfer tax in terms of paragraph 2 shall be accompanied by a return in the form prescribed.5. Recovery of intermediated money transfer tax from customer
Notwithstanding any other law, a financial institution that has paid intermediated money transfer tax may recover the tax from either of the persons on whose account the transaction was effected, or from both or any of them in such proportions as it may determine, either by debiting the person’s account operated with it or in any other manner. In all respects as if the amount of the tax were a fee or charge levied by the financial institution in the ordinary course of its business.6. Penalty for non-payment of intermediated money transfer tax
(1)Subject to subparagraph (2), a financial institution that fails to pay to the Commissioner any intermediated money transfer tax as provided in paragraph 2 shall be liable to pay, in addition to the tax, a further amount equal to fifteen per centum of the unpaid tax.(2)If the Commissioner is satisfied in any particular case that a failure to pay any intermediated money transfer tax was not due to an intent to evade the provisions of this Schedule, he may waive the payment of the whole or such part as he thinks fit of the additional amount referred to in subparagraph (1).7. Refund of intermediated money transfer tax
If it is proved to the satisfaction of the Commissioner that any person has paid any amount by way of intermediated money transfer tax in excess of the amount properly payable in terms of this Schedule, the Commissioner shall authorise a refund of the amount overpaid.Provided that the Commissioner shall not authorise a refund in terms of this paragraph unless the claim therefore is made within three years of the date of the overpayment.Thirtieth-first Schedule (Section 36H)
NOCZIM debt redemption and strategic reserve levy
1. Interpretation
(1)In this Schedule—“NOCZIM” means the National Oil Company of Zimbabwe (Private) Limited;“NOCZIM Debt Redemption Sinking Fund” means the sinking fund established in terms of section 30 of the Exchequer Act for the purposes referred to in subparagraph (1) of paragraph 3, and administered by the Minister responsible for energy;“oil company” means—(a)BP and Shell Marketing (Private) Limited; or(b)Caltex Oil Zimbabwe (Private) Limited; or(c)Mobil Oil Zimbabwe (Private Limited; or(d)Total Zimbabwe (Private) Limited; or(e)Country Petroleum Services; or(f)Engen Petroleum Services; or(g)Jovenna Energy Services; or(h)Royal Oil Services group; or(j)Atrax Commodities (Private) Limited; or(k)Exor Enterprises (Private) Limited; or(l)Migdale Investments (Private) Limited; or(n)Wedzera Investments; or(o)any other person permitted by the Minister responsible for energy to import petroleum products;“petroleum product” means—(a)leaded or unleaded petrol; or(b)the fuel designed for use in a compression—ignition engine, commonly known as diesel fuel; or(c)any refined petroleum capable of being used as a motor-spirit;but does not include aviation fuel, illuminating paraffin or power paraffin;“Reserve Bank” means the Reserve Bank of Zimbabwe.2. Liability for NOCZIM debt redemption and strategic reserve levy
(1)With effect from the year of assessment beginning on the 1st December, 2003, every oil company and other person or entity (other than the State) that —(a)purchases any petroleum product from NOCZIM, shall deduct from the purchase price it pays to NOCZIM the required NOCZIM debt redemption levy and without delay pay the amount so deducted to the Zimbabwe Revenue Authority;Provided that the Minister may, by notice in the Gazette, exempt any power generation project (as defined in section 14(1) of the Finance Act) from liability for NOCZIM debt redemption levy and strategic reserve levy for a temporary or indefinite period and may backdate such exemption;or(b)imports any petroleum product, shall pay the required NOCZIM debt redemption levy to the Zimbabwe Revenue Authority at the port of entry of the petroleum product:3. Application of moneys received in terms of this Schedule
(1)The Minister responsible for energy, in consultation with the Minister responsible for finance shall ensure that all moneys received from the Zimbabwe Revenue Authority in terms of this Schedule are deposited in the NOCZIM Debt Redemption Sinking Fund and applied towards the settlement of debts incurred by NOCZIM in the procurement of petroleum products, whether such debts are incurred before or after the 1st January, 2004, and, in so doing, the Minister, in consultation with the Minister responsible for finance, may direct the order and manner in which NOCZIM is to settle its debts.(2)NOCZIM shall take all necessary steps to comply with any direction referred to in subsection (1).Thirtieth-second Schedule (Section 36I)
Property or insurance commission tax
1. Interpretation
(1)In this Schedule—“commission” means an amount paid or payable by an insurer or estate agent to a freelance agent in respect of any act done by that agent on its behalf as an insurance agent, insurance broker or property negotiator;“estate agent” means a person who is a registered estate agent in terms of the Estate Agents Act ;“freelance agent” means—(a)an insurance agent who is not registered as an employee by an insurer in terms of the Thirteenth Schedule; or(b)an insurance broker who is not registered as an employee by an insurer in terms of the Thirteenth Schedule, to the extent that any commission earned by the broker is payable by the insurer; or(c)a property negotiator who is not registered as an employee by an estate agent in terms of the Thirteenth Schedule and to whom a commission is paid by an estate agent, whether on its own account or on behalf of any party to the sale or lease of immovable property;“insurance agent” means a person who, on behalf of a registered insurer or registered insurers—(a)initiates insurance business; or(b)does any act in relation to the receiving of proposals for insurance, the issue of policies or the collection of premiums;“insurance broker” means a person who, on behalf of any other person, negotiates insurance business with insurers, and includes a person who negotiates reinsurance business on behalf of any other person;“insurer” means a person registered as an insurer in terms of the Insurance Act ;“principal” means an estate agent or an insurer;“property negotiator” means a person by whatever title designated who, on behalf of an estate agent or estate agents—(a)introduces parties to the sale or lease of immovable property to each other or to the estate agent; or(b)negotiates or concludes the sale or lease of immovable property.2. Principals to withhold tax
(1)Every principal who pays a commission to a freelance agent shall withhold property or insurance commission tax from that commission and shall pay the amount withheld to the Commissioner-General on or before the tenth day of the month following the month in which the payment was made or within such further time as the Commissioner-General may for good cause allow.(2)Where property or insurance commission tax is withheld in terms of subparagraph (1), the payer shall provide the payee with a certificate, in a form approved by the Commissioner-General, showing—(a)the amount of the commission; and(b)the amount of the property or insurance commission tax withheld.3. Payee to pay tax not withheld by principal
A freelance agent to whom a commission is paid from which property or insurance commission tax has not been withheld in terms of paragraph 2 or recovered in terms of section seventy-seven shall pay to the Commissioner-General, on or before the tenth day of the month following the month in which the payment was made, the tax that should have been withheld.4. Returns to be furnished
Payment of property or insurance commission tax by a principal shall be accompanied by a return in the form prescribed.5. Penalty for non-payment of tax
(1)Subject to subparagraph (2), a principal who fails to withhold or pay to the Commissioner-General any amount of property or insurance commission tax as provided in paragraph 2 shall be personally liable for the payment to the Commissioner-General, not later than the date on which payment should have been made in terms of paragraph 2 of—(a)the amount of property or insurance commission tax which the principal failed to pay to the Commissioner-General; and(b)a further amount equal to such property or insurance commission tax.(2)The amounts for the payment of which a principal is liable in terms of subsection (1)—(a)shall be debts due by the principal to the State; and(b)may be sued for and recovered by action by the Commissioner-General in any court of competent jurisdiction.(3)The Commissioner-General, if he or she is satisfied in any particular case that the failure to pay to him or her property or insurance commission tax was not due to any intent to evade the provisions of this Schedule, may waive the payment of the whole or such part as he or she thinks fit of the amount referred to in subparagraph (b) of subparagraph (1).6. Refund of overpayments
If it is proved to the satisfaction of the Commissioner-General that any person has been charged with property or insurance commission tax in excess of the amount properly chargeable to him or her in terms of this Schedule, the Commissioner-General shall authorise a refund in so far as it has been overpaid:Provided that the Commissioner-General shall not authorise any refund in terms of this paragraph unless the claim therefor is made within six years of the date of payment of such tax.Thirtieth-third Schedule (Sections 36J and 97C)
Tax on non-executive director’s fees
1. Interpretation
(1)In this Schedule—“corporate body” means any body or association incorporated or registered under any law relating to asset managers, banks, building societies, unit trust schemes, companies, financial institutions, insurers or pension funds or under a special law;“director”, in relation to a corporate body, means a person, by whatever name he or she may be called, who—(a)controls or governs that corporate body; or(b)is a member of a body or group of persons which controls or governs that corporate body;’ or and includes any person occupying the position of director or alternate director of a body corporate;“non-executive director’s fees” means any remuneration of a director paid by the corporate body of which he or she is a director—(a)that is excluded for the purposes of employees’ tax by virtue of paragraph (b) of the definition of “remuneration” in paragraph 1(1) of the Thirteenth Schedule; or(b)from which employees’ tax is not withheld in terms of the Thirteenth Schedule for any reason;“tax” means tax on non-executive director’s fees.2. Payers to withhold tax
(1)Every payer of non-executive director’s fees to a director shall withhold tax from those fees and shall pay the amount withheld to the Commissioner within ten days of the date of payment or within such further time as the Commissioner may for good cause allow.(2)Where tax is withheld in terms of subparagraph (1), the payer shall provide the payee with a certificate, in a form approved by the Commissioner, showing—(a)the amount of the non-executive director’s fees; and(b)the amount of tax withheld.3. Agents to withhold tax not deducted by payer
(1)Every agent who receives on behalf of a payee non-executive director’s fees from which tax has not been withheld by the payer, shall withhold tax from those fees and shall pay the amount withheld to the Commissioner within ten days of the date of the receipt of the fees.(2)Where tax is withheld in terms of subparagraph (1), the agent shall provide the payee with a certificate in a form approved by the Commissioner, showing—(a)the name of the payer; and(b)the amount of the non-executive director’s fees; and(c)the amount of tax withheld.(3)For the purposes of this paragraph, a person shall be deemed to be the agent of a payee and to have received non-executive director’s fees on behalf of that payee if—(a)that person’s address appears in the payer’s records as the address of the payee; and(b)the warrant or cheque in payment of the fees is delivered at that person’s address.4. Payee to pay tax not withheld by payer or agent
A payee to whom non-executive director’s fees have been paid from which tax has not been withheld in terms of paragraph 2 or 3 or recovered in terms of section 77 shall pay to the Commissioner within fifteen days of the date of payment of the fees the tax that should have been withheld.5. Returns to be furnished
Payment of tax on fees by a payer or an agent shall be accompanied by a return in the form prescribed.6. Penalty for non-payment of tax
(1)Subject to subparagraph (2), a payer or an agent in Zimbabwe who fails to withhold or pay to the Commissioner any amount of tax as provided in paragraph 2 or 3 shall be personally liable for the payment to the Commissioner, not later than the date on which payment should have been made in terms of paragraph 2 or 3, as the case may be, of—(a)the amount of the tax which the payer or the agent, as the case may be, failed to pay to the Commissioner; and(b)a further amount equal to such tax.(2)The Commissioner, if he or she is satisfied in any particular case that the failure to pay to him or her tax was not due to any intent to evade the provisions of this Schedule, may waive the payment of the whole or such part as he or she thinks fit or repay the whole or such part as he or she thinks fit of the amount referred to in subparagraph (1)(b).7. Refund of tax
If it is proved to the satisfaction of the Commissioner that any person has been charged with tax in excess of the amount properly chargeable in terms of this Schedule, the Commissioner shall authorise a refund in so far as it has been overpaid:Provided that the Commissioner shall not authorise any refund in terms of this paragraph unless the claim therefor is made within three years of the date of payment of such tax.Thirtieth-fourth Schedule (Section 36K)
Petroleum importers levy
1. Interpretation
(1)In this Schedule—“petroleum importer” means a company or other person holding a procurement licence to import petroleum products in bulk into Zimbabwe.(2)Any term to which a meaning has been assigned in the Petroleum Act (No. 11 of 2006) shall bear the same meaning when used in this Schedule.2. Liability for petroleum importers levy
(1)Every petroleum importer who transports petroleum products by road shall, at any designated port of entry into Zimbabwe, pay to the Zimbabwe Revenue Authority a petroleum importers levy at the rate fixed by the Charging Act.(2)If required to do so by the Zimbabwe Revenue Authority, a petroleum importer referred to in subparagraph (1) shall supply the Zimbabwe Revenue Authority with such accounts, reports, documents and information as may reasonably be required to ascertain whether or not the petroleum importer concerned is complying with subparagraph (1).3. Penalty for failure to pay petroleum importers levy timeously
(1)If any petroleum importer referred to in paragraph 2 fails timeously to pay any amount of petroleum importers levy due, the Zimbabwe Revenue Authority may by notice in writing to the petroleum importer concerned levy a civil penalty of thirty United States dollars for each day during which the petroleum importer fails to pay the levy in full, which penalty shall not continue to be levied beyond the one hundred and eighty-first day calculated from the first day on which such levy is due:Provided that the Authority shall have power to waive the payment or refund the whole or part of any penalty prescribed under this paragraph if it is satisfied that the contravention was not wilful, or not due to the want of reasonable care.(2)A civil penalty levied under subparagraph (1) shall constitute a debt due to the Zimbabwe Revenue Authority by the person against whom it is levied, and shall, at any time after it becomes due, be recoverable in a court of competent jurisdiction by proceedings in the name of the Authority.Thirtieth-fifth Schedule (Section 98B)
Transfer pricing
1. Interpretation
In this Schedule—“comparable transaction” means a transaction that is comparable by reference to paragraph 3;“uncontrolled transaction” means any transaction between independent persons;2. Arm’s length principle
The determination of whether the conditions of a controlled transaction are consistent with the arm’s length principle for the purposes of section 98B shall be made by the Commissioner-General in accordance with this Schedule.3. Comparability
(1)An uncontrolled transaction is comparable to a controlled transaction within the meaning of section 98B(1) —(a)when there are no differences between them that could materially affect the financial indicator being examined under the appropriate transfer pricing method; or(b)when such differences exist, if a reasonably accurate comparability adjustment is made to the relevant financial indicator of the uncontrolled transaction in order to eliminate the effects of such differences on the comparison.(2)To determine whether two or more transactions are comparable, the following factors shall be considered to the extent that they are economically relevant to the facts and circumstances of the transactions—(a)the characteristics of the property or services transferred; and(b)the functions undertaken by each person with respect to the transactions, taking into account assets used and risks assumed; and(c)the contractual terms of the transactions; and(d)the economic circumstances in which the transactions take place; and(e)the business strategies pursued by each of the associated persons in relation to the transactions.4. Transfer pricing
(1)The arm’s length remuneration of a controlled transaction shall be determined by applying the most appropriate transfer pricing method to the circumstances of the case.(2)The most appropriate transfer pricing method shall be selected from among the approved transfer pricing methods set out in paragraph 5(5), taking into consideration the following criteria—(a)the respective strengths and weaknesses of the approved methods; and(b)the appropriateness of an approved method in view of the nature of the controlled transaction, determined in particular through an analysis of the functions undertaken by each person in the controlled transaction, taking into account assets used and risks assumed; and(c)the availability of reliable information needed to apply the selected transfer pricing method or other methods; and(d)the degree of comparability between the controlled and uncontrolled transactions, including the reliability of comparability adjustments, if any, that may be required to eliminate differences between them.(3)It shall not be necessary to apply more than one method to determine whether the conditions of a given controlled transaction are consistent with the arm’s length principle.(4)Where a taxpayer has used an approved transfer pricing method and the selection of that method is consistent with this regulation, the examination by the Commissioner of whether the conditions of the taxpayer’s controlled transactions are consistent with the arm’s length principle shall be based on that transfer pricing method applied by the taxpayer.(5)The following shall be the approved transfer pricing methods for purposes of subparagraph (2)—(a)the Comparable Uncontrolled Price Method, which is the comparable uncontrolled price method consisting of comparing the price charged for property or services transferred in a controlled transaction to the price charged for property or services transferred in a comparable uncontrolled transaction; and(b)the Resale Price Method, which is the resale price method consisting of comparing the resale margin that a purchaser of property in a controlled transaction earns from reselling that property in an uncontrolled transaction with the resale margin that is earned in comparable uncontrolled purchase and resale transactions; and(c)the Cost Plus Method, which is the cost plus method consisting of comparing the mark-up on those costs directly and indirectly incurred in the supply of property or services in a controlled transaction with the mark-up on those costs directly and indirectly incurred in the supply of property or services in a comparable uncontrolled transaction; and(d)the Transactional Net Margin Method, which is the transactional net margin method consisting of comparing the net profit margin relative to an appropriate base, such as costs, sales or assets, that a person achieves in a controlled transaction with the net profit margin relative to the same base achieved in comparable uncontrolled transactions; and(e)the Transactional Profit Split Method, which is the transactional profit split method consisting of allocating to each associated person participating in a controlled transaction the portion of common profit (or loss) derived from such transaction that an independent person would expect to earn from engaging in a comparable uncontrolled transaction. When it is possible to determine an arm’s length remuneration for some of the functions performed by the associated persons in connection with the transaction using one of the approved methods described in subparagraphs (a) to (d) above, the transactional profit split method shall be applied based on the common residual profit that results once such functions are so remunerated.(6)Where, taking account of the criteria described in subparagraph (3), a comparable uncontrolled price method described in subparagraph (5)(a) and an approved method described in subparagraph (5)(b) to (e) can be applied with equal reliability, the determination of arm’s length conditions shall be made using the comparable uncontrolled price method.(7)Where, taking account of the criteria described in subparagraph (2), an approved method described in subparagraph (5)(a) to (c) and an approved method described in subparagraph (5)(d) to (e) can be applied with equal reliability, the determination of arm’s length conditions shall be made using the method described in subparagraph (5)(a) to (c).(8)It shall not be necessary to apply more than one method to determine the arm’s length remuneration for a given controlled transaction.(9)A transfer pricing method other than the approved methods contained in subparagraph (5) may be applied where the Commissioner is satisfied that—(a)none of the approved methods can be reasonably applied to determine arm’s length conditions for the controlled transaction; and(b)such other method yields a result consistent with that which would be achieved by independent persons engaging in comparable uncontrolled transactions under comparable circumstances.(10)When a method other than the approved methods contained in subparagraph (5) is used it shall establish that the requirements of subparagraph (9) have been satisfied.(11)When applying a cost plus, resale price or transactional net margin method, provided under subparagraph (5), it shall be necessary to select the party, hereinafter referred to as the “tested party”, to the transaction for which a financial indicator, mark-up on costs, gross margin, or net profit indicator, is tested under the applicable transfer pricing method.(12)The selection of the tested party should be consistent with the functional analysis of the transaction.(13)Where a taxpayer has used a transfer pricing method to establish the remuneration of its controlled transactions and that transfer pricing method is consistent with the provisions of this paragraph, then the Commissioner’s examination of whether the conditions of the taxpayer’s controlled transactions are consistent with the arm’s length principle shall be based on the transfer pricing method applied by the taxpayer.5. Evaluation of taxpayer’s combined controlled transactions
If a taxpayer carries out, under the same or similar circumstances, two or more controlled transactions that are economically closely linked to one another or that form a continuum such that they cannot reliably be analysed separately, those transactions may be combined to (i) perform the comparability analysis set out in paragraph 3 and (ii) apply the transfer pricing methods set out in paragraph 5.6. Arm’s length range
(1)An arm’s length range is a range of relevant financial indicator figures (e.g. prices, margins or profit shares) produced by the application of the most appropriate transfer pricing method as set out in paragraph 4 to a number of uncontrolled transactions, each of which is relatively equally comparable to the controlled transaction based on a comparability analysis conducted in accordance with paragraph 3.(2)A controlled transaction, or a set of transactions that are combined according to paragraph 5 shall not be subject to an adjustment under section 98B where the relevant financial indicator derived from the controlled transaction or set of transactions and being tested under the appropriate transfer pricing method is within the arm’s length range.(3)Where the relevant financial indicator derived from a controlled transaction, or from a set of transactions that are combined according to paragraph 5, falls outside the arm’s length range, the Commissioner may adjust it pursuant to section 98B(1), and any such adjustment shall be to the median in the arm’s length range.(4)For the purposes of subparagraph (3), the median of the arm’s length range shall be the 50th percentile of the financial indicator figures derived from the comparable uncontrolled transactions forming the arm’s length range. For this purpose, the 50th percentile is the lowest financial indicator figure such that at least 50 percent of the financial indicator figures are at or below the value of that figure. However, if exactly 50 percent of the results are at or below a financial indicator figure, then the 50th percentile is equal to the arithmetic mean of that figure and the next highest figure.7. Sources of information on comparable uncontrolled transactions
(1)Possible sources of information on comparable uncontrolled transactions that may include—(a)internal uncontrolled transactions, which are uncontrolled transactions where one of the parties to the controlled transaction is also a party to the uncontrolled transaction; and(b)external uncontrolled transactions, which are uncontrolled transactions to which neither of the parties to the controlled transaction is a party.(2)Information concerning a comparable external uncontrolled transaction may not be relied upon by the Commissioner for the purposes of making an adjustment under section 98B if the information concerning the transaction is not available to the taxpayer.(3)Information concerning a comparable uncontrolled transaction may not be relied upon by the taxpayer for the purposes of demonstrating the consistency a transaction with section 98B if the information on the transaction is not available to the Commissioner.(4)In the absence of information on uncontrolled transactions from the same geographic market as the controlled transaction, comparable uncontrolled transactions from other geographic markets may be accepted by the Commissioner.(5)A determination of whether comparables from other geographic markets are reliable has to be made on a case-by-case basis, and by reference to the extent to which they satisfy paragraph 3 of this Schedule.(6)Taxpayers using such comparables would be expected to assess the expected impact of geographic differences and other factors on the price and profitability.8. Services between associated enterprises
(1)A service charge between a taxpayer and an associated person shall be considered consistent with the arm’s length principle where—(a)it is charged for a service that is actually rendered; and(b)the service provides, or when rendered was expected to provide, the recipient with economic or commercial value to enhance its commercial position; and(c)it is charged for a service that an independent enterprise in comparable circumstances would have been willing to pay for if performed for it by an independent enterprise, or would have performed in-house for itself; and(d)its amount corresponds to that which would have been agreed between independent enterprises for comparable services in comparable circumstances.(2)A service charge made to a person shall not be consistent with the arm’s length principle where it is made by an associated person solely because of the shareholder’s ownership interest in one or more other group members, including for any of the following costs incurred or activities undertaken by such associated person—(a)costs or activities relating to the juridical structure of the parent company of the first-mentioned person, such as meetings of shareholders of the parent, issuing of shares in the parent company and costs of the parent company’s supervisory board; and(b)costs or activities relating to reporting requirements of the parent company of the first-mentioned person, including the consolidation of reports; and(c)costs or activities related to raising funds for the acquisition of participations, unless those. participations are directly or indirectly acquired by the first-mentioned person and the acquisition benefits or is expected to benefit that first-mentioned person.(3)Where it is possible to identify specific services provided by a taxpayer to a associated person, the determination whether the service charge is consistent with the arm’s length principle shall be made for each specific service, subject to the provisions of subparagraph (4).(4)Where services are rendered by a taxpayer jointly to various associated persons and it is not possible to identify specific services provided to each of them, the total service charge shall be allocated among the associated persons that benefit or expect to benefit from the services according to reasonable allocation criteria.(5)For the purpose of this paragraph, allocation criteria shall be viewed as reasonable where they are based on a variable or variables that—(a)take into account the nature of the services, the circumstances under which they are provided and the benefits obtained or that were expected to be obtained by the persons for which the services are intended; and(b)relate exclusively to uncontrolled, rather than controlled, transactions; and(c)are capable of being measured in a reasonably reliable manner.9. Transactions involving intangible property
(1)The determination of arm’s length conditions for controlled transactions involving licences, sales or other transfers of intangible property between associated persons shall take into account both the perspective of the transferor of the property and the perspective of the transferee, including in particular the pricing at which a comparable independent enterprise would be willing to transfer the property and the value and usefulness of the intangible property to the transferee in its business.(2)In applying the provisions of paragraph 3 to a transaction involving the licence, sale or other transfer of intangible property, consideration shall be given to any special factors relevant to the comparability of the controlled and uncontrolled transactions, including—(a)the expected benefits from the intangible property; and(b)any geographic limitations on the exercise of rights to the intangible property; and(c)the exclusive or non-exclusive character of the rights transferred; and(d)whether the transferee has the right to participate in further developments of the intangible property by the transferor.10. Corresponding adjustments for domestic transactions
(1)The determination of arm’s length conditions for controlled transactions involving licences, sales or other transfers of intangible property between associated persons shall take into account both the perspective of the transferor of the property and the perspective of the transferee, including in particular the pricing at which a comparable independent enterprise would be willing to transfer the property and the value and usefulness of the intangible property to the transferee in its business.(2)In applying the provisions of paragraph 3 to a transaction involving the licence, sale or other transfer of intangible property, consideration shall be given to any special factors relevant to the comparability of the controlled and uncontrolled transactions, including—(a)the expected benefits from the intangible property; and(b)any geographic limitations on the exercise of rights to the intangible property; and(c)the exclusive or non-exclusive character of the rights transferred; and(d)whether the transferee has the right to participate in further developments of the intangible property by the transferor.11. Corresponding adjustments for domestic transactions
Where an adjustment is made by the Commissioner under section 98B to the taxable income of a taxpayer in relation to a domestic transaction, then, the Commissioner shall make an appropriate adjustment to the taxable income of the other party to the transaction.12. Corresponding adjustments for international transactions
(1)A service charge between a taxpayer and an associated person shall be considered consistent with the arm’s length principle where—(a)an adjustment to the conditions of transactions between a person resident in Zimbabwe and an associated person is made or proposed by a tax administration in a country other than Zimbabwe; and(b)this adjustment results in the taxation in that other country of an amount of income on which the person resident in Zimbabwe has already been charged to tax in Zimbabwe; and(c)the country making or proposing the adjustment has a treaty with Zimbabwe that reflects an intention to provide for the relief of economic double taxation.(2)The Commissioner, shall after a request is made by the person resident in Zimbabwe, examine the consistency of that adjustment with the arm’s length principle provided for under section 98B, consulting as necessary with the competent authority of the other country.(3)If the adjustment proposed or made by the other country is consistent with the arm’s length principle both in principle and as regards the amount, the Commissioner shall make a corresponding adjustment to the amount of the tax charged in Zimbabwe to that person on those profits, in order to eliminate the economic double taxation that would result from the inclusion of the same profits in the taxable income of both that person and the associated person.(4)A request under subparagraph (2) must include the information necessary for the Commissioner to examine the consistency of the adjustment made by the tax administration of the other country with the arm’s length principle, including—(a)the name, registered address and, where applicable, trading name(s) of the related person; and(b)evidence of the tax residence of the related person;(c)the year(s) in which the adjusted controlled transaction(s) took place;(d)the amount of the requested corresponding adjustment and the amounts of the adjustment made by the tax administration of the other country;(e)evidence of the adjustment made by the tax administration of the other country and the basis for the adjustment, including details of comparability analysis relied upon and the transfer pricing method applied;(f)confirmation that the related person party will not, or is unable to, pursue any further recourse under the domestic law of the other country that may result in the adjustment made by the tax administration of the other country being reduced or reversed;(g)any other information that may be relevant for examining the consistency of the adjustment with the arm’s length principle.(5)The request must be made within the applicable time period for making a request for the case to be resolved by way of mutual agreement procedure under the applicable tax treaty.13. Relevance of OECD Transfer Pricing Guidelines
The Organization for Economic Cooperation and Development (OECD) “Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations” and the UN Manual on the interpretation of transfer pricing are relevant sources of interpretation for this Schedule. There may also be other relevant sources such as the United Nations Practical Manual on Transfer Pricing for developing countries.Thirtieth-sixth Schedule (Section 36L)
Bookmakers tax
1. Interpretation
(1)In this Schedule—“bookmaker” means a person licensed or required to be licensed as such in terms of the Betting and Totalizator Control Act ;“gross takings”, in relation to a bookmaker, means the total money earned by the bookmaker from betting with members of the public before paying out on any bet.(2)Any term defined in the Betting and Totalizator Control Act shall bear the same meaning when used in this Schedule.2. Bookmakers to pay bookmakers tax
(1)Every bookmaker shall pay three per centum of his or her gross takings in every month to the Commissioner-General no later than the last day of the month following the month in which the bookmaker collected those takings, or within such further time as the Commissioner-General may for good cause allow.(2)Together with the payment of bookmakers tax the bookmaker shall provide the Commissioner-General with a return, in a form approved by the Commissioner-General, showing—(a)the amount of the bookmakers tax; and(b)the amount of the gross takings from which the tax is paid.3. Penalty for non-payment of tax
(1)Subject to subparagraph (2), a bookmaker who fails to pay to the Commissioner-General any amount of bookmakers tax as provided in paragraph 2 shall be liable for the payment to the Commissioner-General, not later than the date on which payment should have been made in terms of paragraph 2 of—(a)the amount of bookmakers tax which he or she failed to pay to the Commissioner-General; and(b)a further amount equal to such bookmakers tax.(2)The amounts for the payment of which a bookmaker is liable in terms of subparagraph (1)—(a)shall be debts due by the principal to the State; and(b)may be sued for and recovered by action by the Commissioner-General in any court of competent jurisdiction.(3)The Commissioner-General, if he or she is satisfied in any particular case that the failure to pay to him or her bookmakers tax was not due to any intent to evade the provisions of this Schedule, may waive the payment of the whole or such part as he or she thinks fit of the amount referred to in subparagraph (1)(b).4. Refund of overpayments
If it is proved to the satisfaction of the Commissioner-General that any bookmaker has been charged with bookmakers tax in excess of the amount properly chargeable to him or her m terms of this Schedule the Commissioner-General shall authorise a refund in so far as it has been overpaid:Provided that the Commissioner-General shall not authorise any refund in terms of this paragraph unless the claim therefor is made within six years of the date of payment of such tax.