Zimbabwe operates a source-based taxation system, meaning income is taxable if it arises within or is deemed to arise within Zimbabwe, regardless of the recipient’s residency status. The Zimbabwe Revenue Authority (ZIMRA) is responsible for enforcing tax laws under key statutes such as the Income Tax Act [Chapter 23:06], Finance Act [Chapter 23:04], and Value Added Tax Act [Chapter 23:12].
Income Tax
Corporate and Individual Tax Rates
As of 2025, the standard tax rates are:
- Individuals (from trade and investments): 24%
- Companies and Trusts: 24%
- Pension Funds (from trade or investment): 15%
- Licensed Investors: 0% for the first five years; 24% thereafter
- Special Mining Lease Holders: 15%
- Companies or Trusts (from mining operations): 24%
Investment Income
- Dividends: Subject to a 15% withholding tax (WHT), reduced to 10% for companies listed on the Zimbabwe Stock Exchange.
- Interest: Typically subject to a 15% WHT for residents; non-residents are generally exempt.
Value Added Tax (VAT)
Effective January 1, 2023, the VAT rate is 15%. VAT applies to the supply of taxable goods and services, including imports. However, certain basic commodities are exempt to mitigate inflationary pressures:
- Exempted Items: Bread, milk, cooking oil, mealie meal, salt, sugar, and flour.
- Standard-Rated Items: Meat, rice, bath and laundry soap, washing powder, and toothpaste.
These exemptions aim to cushion consumers from price hikes on essential goods.
Capital Gains Tax (CGT)
General CGT Rates
- Assets acquired before February 22, 2019: 5% of the gross capital amount.
- Assets acquired on or after February 22, 2019: 20% of the capital gain.
Listed Securities
To stimulate investment, the capital gains withholding tax on listed marketable securities was reduced:
- June 28 – December 28, 2024: Exempt from CGT.
- From January 1, 2025: Reduced to 1% of the sale price.
Special CGT on Mining Titles
Introduced on January 1, 2024, this tax applies to the transfer of mining titles:
- Standard Rate: 20% of the transaction value.
- Reduced Rate: 5% if the transfer has ministerial approval.
- Applicability: Transactions from January 1, 2014, onwards.
Customs and Excise Duties
Customs duties range from 0% to 40%, depending on the commodity. Zimbabwe is a member of trade agreements like COMESA, SADC, and AfCFTA, which may offer preferential duty rates. Excise duties apply to specific goods, such as alcohol and tobacco.
Stamp Duty
Stamp duty is levied on the registration of immovable property, calculated based on the property’s value:
- Up to $5,000: 1% + $70
- $5,001 – $20,000: 2% + $70
- $20,001 – $100,000: 3% + $370
- Above $100,000: 4% + $2,770
Exemptions may apply in cases such as inheritance, divorce settlements, or transfers to charitable organizations.
Estate Taxes
- Master’s Fees: 4% of the estate’s value.
- Estate Duty: 5% on the dutiable amount, calculated as:
Total Assets – Liabilities – Principal Residence – Family Car – Rebate = Dutiable Amount
