Zimbabwe: New Tax Tables – Effective 1 January 2020

Click here to view The Finance (No. 3) Act, 2019 and refer to the Amendments to the Income Tax Act and the Third Schedule.

Click here to view the latest Income Tax rates in both the local ZWL and the USD currency.

Other changes to the Income Tax Act include the following:

  • Car benefit- Section 8 of The Finance Act confirms the new motoring benefit values as tabulated below: Effective 1 January 2020.

  • Bonus- Section 13(1)(b) of The Finance Act confirms that the tax-free bonus has increased to ZWL5 000 (USD320). Effective 1 November 2019.
  • Retrenchment lump sum- Section 13(1)(c) of the Finance Act states that the tax-free portion of the retrenchment package has increased ZWL50 000 (USD3 200) or one-third of the package up to ZWL240 000 (USD15 100). Effective 1 November 2019. 

Note that the employer needs to apply for a directive from ZIMRA before this exemption can be applied to employment income

Before installing the software, take note of the following:

  • Your payroll software must be on Release 5.3b which is available on the customer zone.
  • Your Zimbabwe payroll companies must all be in January 2020 before extracting the tax file.
  • The tax file should notbe installed in the Tax Year End Copy system which will be used to run the reports due for submission to ZIMRA.

Click here to visit software downloads page and follow the instructions below:

  • Select the Africa tab

           

  • For installation instructions click on the Download button next to Africa Tax Changes Installation Notes for Premier/Sage200c – R5.3a/b
  • Click on the Download button next to Zimbabwe Tax Changes for Premier/Sage200c R5.3a/b (Jan 2020) and follow the installation instructions
  • An information document is also available once you have clicked on the Download button