TAX MATTERS: Insurance commission tax: A regulatory dilemma with unintended consequences

The World Bank identified the existence of multiple tax incentives, particularly in mining, a large informal sector, and tax compliance challenges, as notable impediments to maximising tax revenue.

IN Zimbabwe, insurance businesses must navigate and comply with many tax obligations. Among these several obligations is the property and insurance commission tax in respect of commission paid to freelance agents or brokers. Advertisements This creates unintended consequences in that the tax liability rests with the person who does not hold any money in their…

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