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Zimbabwe: Tax measures in 2020 mid-term budget

Zimbabwe: Tax measures in 2020 mid-term budget

The 2020 mid-term fiscal policy review was presented in July 2020 by the Minister of Finance and Economic Development.


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Among the tax measures listed in the mid-term budget are proposals for:

  • Amendments to the 2% rate of the “immediate money transfer tax” (IMTT) thresholds and introduction of IMTT on Nostro foreign currency account transfers
  • Revision of “pay as you earn” (PAYE) tax tables effective 1 August 2020
  • Tax-free risk allowances for frontline public health personnel for the period 1 April 2020 to 31 March 2021
  • Introduction of tax administration responsibilities for foreign satellite broadcasting services and electronic commerce platform providers
  • Mining royalties to continue to be collectable in foreign currency to the extent the amounts from which they are withheld are foreign currency amounts

The budget statement also highlights that mineral royalties are calculated on gross proceeds and not amounts net of processing costs.

Key proposals that were part of the budget statement but excluded from the finance bill include the following:

  • Exemption from VAT on domestic tourist accommodation services for the period 1 August 2020 to 31 July 2021
  • Deductible health related donations to be increased to the local currency equivalent of U.S. $100,000
  • Revised calculations for excise tax (duty) on fuel effective 1 August 2020

Read a July 2020 report [PDF 2 MB] prepared by the KPMG member firm in Zimbabwe

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