The following were the annual deemed benefits on the use of an employer’s motor vehicle by an employee, effective from 1 January 2024.
Engine capacity
Up to 1,500 cc 625
1,501 cc to 2,000 cc 830
2,001 cc to 3,000 cc 1,250
3,001 cc and above 1,660
* For local currency payrolls, the deemed benefit amounts are the equivalent of the US dollar (USD) values converted using the exchange rate prevailing on the date of processing the payroll.
Nonresident persons providing employee services in Zimbabwe are liable to tax on their employment income in Zimbabwe at the rates shown in employee tax tables.
Partners in a partnership are not employees and therefore are not subject to employee tax. Instead, they are individually taxed on their share of partnership profits at a rate of 25% plus the 3% AIDS levy. For the period January 2021 to 31 December 2023, the tax rate was 24%.
Executive directors’ fees. Fees paid to executive directors by the employer are considered employee income and are liable to employee tax.
Self-employment and business income. Income tax is levied on total income received by or accrued to or in favor of any person or income deemed to have been received by or accrued to or in favor of a person from a source in Zimbabwe or a deemed source in Zimbabwe. This excludes amounts proved by the taxpayer to be capital in nature. Certain types of income are exempt from tax. These are covered in the Third Schedule to the Income Tax Act.
Up to 31 December 2023, income from trade and investment was subject to tax at a rate of 24% plus the 3% AIDS levy. The tax rate was increased to 25% from 1 January 2024. The combined tax rate, including the 3% AIDS levy, is 25.75%.
Nonresident persons with business income are taxed at 25.75% inclusive of the 3% AIDS levy.
Investment income. The following are the tax rates for dividends.
• Zimbabwe Stock Exchange-listed (ZSE-listed) securities: 10%
• Victoria Falls Stock Exchange-listed securities: 5%
• Unlisted securities: 15%
Dividends received from another country are taxed at a special rate of 20% on the gross amount. The AIDS levy is not chargeable. Any withholding tax paid in the payer jurisdiction can be claimed as a credit. The credit is limited to the tax payable in Zimbabwe.
Interest paid on deposits with local building societies, banks and other financial institutions are exempt from income tax. However, it is subject to a final withholding tax of 15%.
Interest on fixed-term deposits for at least 90 days or one year, is taxed at 5% or 0%, respectively.
supplier of goods or services who has not furnished a valid tax clearance certificate. The tax is not withheld on aggregate annual payments not exceeding USD1,000 or the local currency equivalent amount. The tax withheld must be remitted to the Commissioner General by the 10th day of the following month. A withholding tax certificate must be issued in favor of the payee. The amounts withheld are credited against the payee’s annual tax.
Non-executive directors are subject to 20% withholding tax on gross fees paid to them. This is a final tax.
Freelance insurance agents, insurance brokers and property negotiators are subject to 20% withholding tax. They are required to submit annual returns on 30 April of the following year. The 20% tax is credited against annual tax.
Nonresident artists or entertainers performing in Zimbabwe are subject to withholding tax of 15%.
The payment of fees for technical, managerial, administrative and consulting services; royalties; and remittances to nonresident persons is subject to 15% withholding tax. The rate may be reduced if there is a double tax treaty. A withholding tax certificate must be issued in favor of the nonresident person so that they can claim a tax credit in their residence state.
Exemptions. The following are exemptions from employment income:
• Annual aggregate amount not exceeding USD700 or the local currency equivalent amount on the payment of a bonus or a performance-related award.
• 50% of the amount waived with respect to tuition and boarding fees and levies payable by a member of the staff of a school, up to a maximum of three children.
• Up to 31 December 2023, the greater of the first ZWL5,000,000 or USD10,000 of severance pay and one-third of severance pay, up to a maximum of ZWL18,750,000 or USD37,500. With effect from 1 January 2024, the exempt amounts were reduced to the greater of the first USD3,200 or one-third of the amount paid subject to the latter not exceeding USD15,100 or the local currency equivalent amount.
• The greater of the first USD1,500 or one-third, up to a maximum of USD10,000 or the local currency equivalent amount of any untaxed pension commutation or annuity payable on cessation of employment due to retrenchment, to an employee below the age of 55 years before the beginning of the year of assessment.
• Proceeds received or accrued on the sale or redemption of any shares, units or other interest of the employee by a trust that accrues to an employee participating in an approved employee share ownership trust.
• Medical expenses (including related travel), invalid appliances and the cost of approved medical aid society contributions paid by an employer for an employee, his or her spouse, minor children and dependents.
• Rewards paid by the Commissioner General for information leading to the recovery of tax revenue.
The USD tax table for the period of 1 January 2024 to 31 December 2024 remained the same, and there are no changes for 2025. The following is the table.
A 3% AIDS levy is imposed on the cumulative tax due.
Relief for losses. Assessed losses on income from trade and investment can be carried forward for up to six years. Assessed losses from mining operations can be carried forward indefinitely. However, assessed losses from one mining location are not deductible from income of other mining locations. Losses from trade and investment activities are not deductible against employment income.
B. Other taxes
Estate and gift taxes. Estate tax is levied on the estates of all deceased persons with assets located in Zimbabwe or with foreign assets arising from Zimbabwean sources. The family home and a family vehicle are not included in the dutiable value of the estate. The first USD100,000 or the local currency equivalent of the dutiable value is tax free. The rate of the estate tax on the balance of the dutiable value is 5%.
Zimbabwe does not levy gift tax. However, the market value of a donation of marketable securities or real property is subject to capital gains tax (see Section A).
Wealth tax. A wealth tax of 1% on residential properties with a value of at least USD250,000 is payable with effect from 1 January 2024. The maximum annual tax payable on a single property is USD50,000. The tax is payable annually; however, taxpayers may elect to pay any time during the year of assessment. Principal private residential property is exempt from the wealth tax.
Presumptive tax. Presumptive tax is imposed on the following:
• Informal traders
• Cross-border traders
Zimbabwe has double tax treaties with the following jurisdictions.
Belarus France Norway
Botswana Germany Poland
Bulgaria Iran* South Africa
Canada Kuwait* Sweden
China Mainland Malaysia Switzerland
Congo Mauritius United Arab (Democratic Namibia* Emirates Republic of)* Netherlands United Kingdom
* This treaty has not yet entered into force.
F. Temporary entry permits
Entry visas are required for all foreign nationals. The government of Zimbabwe issues single- and multiple-entry visas. Certain categories of visitors (specified by the immigration authorities) are automatically granted entry at the port of entry. Others are required to obtain visas before reaching the port of entry.
Visitors’ entry certificates. Visitors’ entry certificates are valid for up to six months and may be obtained on entry. This type of permit does not allow the holder to engage in any work, occupation or activity for gain, unless prior authority is given.
Student and scholars’ permits. A student permit may be issued for the purpose of attending any educational institution other than a school. This type of permit is valid for one year from the date of issue and may be extended for additional periods.
A scholar’s permit authorizes a foreign national to attend any school approved by the Chief Immigration Officer. This type of permit remains valid for a period of one school term from the date of issue and may be extended for further study. The permit remains valid automatically if the scholar remains at the same school for which the scholar’s permit is issued.
The holder of a student or a scholar’s permit may not engage in any gainful occupation except during school holidays.
Business visitors’ permits. Visitors to Zimbabwe on business must enter under business visitors’ permits. This type of permit is valid for 30 days and cannot be extended.
G. Work permits
Any person who wishes to engage in an occupation (including work for gain or in the interests of any business undertaking) in Zimbabwe must obtain a valid temporary employment permit (TEP). TEP holders must train Zimbabweans to develop the skills for which the foreign nationals were admitted. Applications for temporary residence permits (see Section H) must be submitted in conjunction with TEP applications.
A TEP may be issued for a maximum period of three years and may be extended for a maximum period of five years if approved by the Chief Immigration Officer.
A TEP is subject to the following conditions:
• The permit holder may not engage in any occupation other than the occupation specified.