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Zimbabwe: Tax changes - Part 2

The Zimbabwe Revenue Authority has released a Public Notice with a summary of tax changes that are applicable from 01 January 2022.

In addition to the change in tax tables, the following has changed:

 

  1. Tax Tables

As per the previous communication.

       2. Data and Airtime benefit

The provision of data and airtime by the employer to the employee for use at the home or outside work premises is a benefit that is taxable in the hands of the employee. The deemed benefit is 30% of the cost to the employer.

      3. Deemed Motoring Benefits

The valuation of the car benefit is as follows:

     4. Pension Deduction

The maximum allowable deduction for pension contributions has been increased to ZWL390 000 or USD3 000 per annum.

     5. Retrenchment Package

  • where the package is in ZWL, the exempt portion is the greater of ZWL$1 300 000 or one-third of the package up to a maximum of ZWL$4 875,000.
  • where the package is in foreign currency, the exempt portion is the greater of USD10 000 or one-third of the package, up to a maximum of USD37 500.                                                                                                                                       

     6. Tax Credits

    7. Payment to non-executive directors

  • With effect from 1 January 2022, the definition of remuneration now excludes any amount given to non-executive directors.
  • This means that if a non-executive director receives any benefits or allowances, the amounts will now be subjected to withholding taxes at the rate of 20% which becomes a final tax.

 

The effective date for all the above changes is 1 January 2022.  Software changes will be communicated.

Update: 02/03/2022

Please refer to the related post:

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