The Finance minister of Zimbabwe announced the 2021 Budget. Please click here for the 2021 National Budget Statement.

Below are the key highlights under Personal Income Tax:

Effective 1 November 2020

The tax-free bonus has increased from ZWL5 000 to ZWL25 000.

The Amendment Act is not yet available, but the bonus exemption should be applied to the payroll as soon as possible.

Proposed changes Effective 1 January 2021

The first and last tax brackets of the PAYE tax table will change, as mentioned below.

The actual tax tables will be provided in the Finance Bill, which is not yet available.

Update: 18/12/2020

The latest Zimbabwe Tax table changes for Premier and 200c VIP is now available.

Before installing the software, take note of the following:

Your payroll software must be on Release 5.5a which is available on the Customer zone.

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

• Select the Africa tab

• Click on the Download button next to Zimbabwe Tax changes for Premier and Sage 200c: R55a (December 2020 – File version 202012
• Download the file, extract the contents of the zip file to your payroll folder, and overwrite any/all existing files.
• For more details on the new tax changes, refer to the document included in the download file

Note:

Otherwise, you may wait until you are informed that it has been gazetted.

Only install the new tax file if you accept the risk of this change not being enacted.