The Minister of Finance and Economic Development in August 2019 presented the 2019 mid-term fiscal policy review statement, and then the Finance Act No. 2 of 2019 was published in the official gazette on 21 August 2019.
In general, the tax-related measures in the mid-term fiscal policy review statement and the draft finance bill were finalized, as introduced, by the Finance Act No. 2. However, there was a change made to the highest marginal ZW tax rate for individual taxpayers. The proposed highest marginal ZW tax rate would have been reduced to 40% in the draft legislation, but that rate was set at 45% in the final version of the legislation.
Among other tax-related measures in Finance Act No 2 of 2019 are the following items:
There were no changes made to the value added tax (VAT) registration threshold; to the annual tax-free bonus threshold for employees; or to “rebase” capital allowances in respect of capital investment made in U.S. dollars prior to the introduction of the ZW dollar (which is expected to result in significant increases to the effective tax rates of businesses above the 25.75% corporate income tax rate).
Read a September 2019 report [PDF 7 MB] prepared by the KPMG member firm in Zimbabwe
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.