Proposed changes, that will affect the PAYE tax, have been announced but not yet promulgated.
Click here to view the Zimbabwe Mid-term Budget & Economic Review Statement.
These proposed changes include the following:
- Proposed Tax Table
- Two Tax years in 2020
- Exemption from PAYE
1. Proposed tax table in local currency, ZWL:
Adjustment to the tax bands to begin at ZWL 5 001 and end at ZWL 100 000, above which the Highest Marginal Tax rate of 40% will apply, with effect from 1 August 2020.
The actual tax tables with the fixed amounts will be provided by ZIMRA once the changes have been enacted.
The USD tax table remains unchanged.
2. Two tax years in 2020
Similar to last year, 2 tax years have been proposed as follows:
- 1 January 2020 to 31 July 2020
- 1 August 2020 to 31 December 2020
3. Exemptions from PAYE
- Monetary benefits received, in lieu of a motor vehicle, by a chairperson, vice-chairperson, commissioner and secretary of an independent constitutional commission, chief director and director of the civil service
- With effect from 1 April 2020, COVID 19 risk allowances payable to the frontline public health personnel are exempt from Income Tax for a period of twelve months
This communication will be updated as soon as more information becomes available.