Zimbabwe, with its rich mineral resources, has long relied on the mining sector as a cornerstone of its economy. Recognising the potential of mining for national development, the government has introduced a special capital gains tax on entities which acquire or transfer mining title and interest. This article unpacks the special capital gains tax, providing clarity on its mechanisms, implications, ...
Unpacking the new wealth tax in Zimbabwe
In Zimbabwe, the topic of taxation often brings complex jargon and detailed legal frameworks that can be challenging to navigate for the average person. One such area is the 1% Wealth Tax introduced through Finance Act 13 of 2023 with effect from 1 January 2024. This article unpacks who is affected by this tax, the role of city councils in its administration and other practical considerations. At ...
Zimbabwe’s VAT Reform: Balancing Revenue Growth with Consumer Affordability
Zimbabwe recently embarked on a significant journey to revamp its tax structure, bringing considerable changes to its Value Added Tax (VAT) system. This decision, aiming to streamline the tax process, has led to a notable shift from the zero-rated category of VAT to a tax-exempt system for certain goods. Goods and services fall into three categories in the VAT Act. They can be either standard rate ...
Zimbabwe’s New Domestic Minimum Top-Up Tax
Zimbabwe's introduction of the Domestic Minimum Top-Up Tax (DMTT) marks a paradigm shift in the taxation of foreign entities operating within the country. The DMTT is meant to foster a fair and effective tax system in line with global rules. This article unpacks the complexities of this new tax for multinational corporations.At its core, the DMTT is a tax levied on the income of foreign entities a ...