Zimbabwe: Tax developments in response to COVID-19
General Information
This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).
The content will be updated on a regular basis. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.
Date accurate as of: 12 August 2020
Several tax measures have been but in place in Zimbabwe as a result of the COVID-19 outbreak. These measures include:
- Expanded online filing options (through emails) to restrict the need for taxpayers to visiting the Zimbabwe Revenue Authority (“ZIMRA”) offices in person.
- ZIMRA will endeavor to process all VAT refunds within 30 days provided certain criteria are adhered to by taxpayers.
- A duty rebate has been introduced in respect of defined essential goods for the fight against COVID-19, with effect from 30 March 2020.
- Extension of the Submission of Income Tax Returns (ITF12C, ITF1 and CGT1) to 31 August 2020 for all taxpayers with a 31 December 2019 year end. Taxpayers with approved year end dates other than 31 December 2019 are expected to submit their returns on the dates previously agreed by ZIMRA. Any concerns in meeting these previously agreed submission dates should be lodged with ZIMRA.
- Further to the Transfer Pricing Return (ITF12C2) published in March 2020, ZIMRA has issued Transfer Pricing Practise Notes which are to be considered together with the Transfer Pricing Provisions.
- There has been amendments to the employment tax rates with increase in tax free threshold from ZWL2,000 to ZWL5,000 per month and the highest tax band at the rate of 40% on income over ZWL100,000 per month effective 1 August 2020.
