UNDERSTANDING the implications of Zimbabwean tax collection measures requires an appreciation of a taxpayer’s obligation and the extent of the revenue authority’s administrative powers. From the point of assessment by the revenue authority, a taxpayer needs to navigate the complex tax provisions to ensure both compliance and protection of its rights. Tax collection measures are…
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. This creates unintended consequences in that the tax liability rests with the person who does not hold any money in their hands…
TRANSFER pricing is increasingly becoming a focal point for tax authorities worldwide and Zimbabwe is no exception. The Zimbabwe Revenue Authority (ZIMRA) is actively working to prevent Base Erosion and Profit Shifting (BEPS). With the region’s transfer pricing laws still developing, enforcement and compliance have become increasingly stringent. Zimbabwe serves as a key example of…
Introduction to VAT Reforms: Effective 1 August 2024, Zimbabwe has proposed substantial reforms to its VAT system, exempting certain products to bolster economic growth and improve the affordability of essential goods. Categories of VAT Supplies: Zimbabwe’s VAT system categorizes goods into standard-rated, zero-rated, and exempt supplies. Standard-rated supplies carry a VAT rate of 15 percent,…
THE zero rating of gold supplies for mining companies marks a significant policy shift in Zimbabwe’s tax regime. This change, introduced through Statutory Instrument 105 of 2024, aims to alleviate the tax burden on gold producers by exempting them from Value Added Tax (VAT) on supplies made to Fidelity Gold Refinery (Private) Limited. Theprevious imposition…
THE Value Added Tax (VAT) on Imported Services (VIS) in Zimbabwe ensures that services procured from non-resident persons and persons operating their business outside Zimbabwe and consumed by residents are taxed similarly to those supplied by local providers. This article explores the background, relevant laws, detailed VAT regulations, and the impact of VIS on businesses…
IN Zimbabwe’s dynamic corporate finance sphere, schemes of reconstruction serve as vital mechanisms, particularly in an environment marked by frequent and impactful economic transformations. These schemes, which include mergers, takeovers, consolidations, and conversions, provide structured pathways for businesses to optimise operations and strategic alignment while minimising tax burdens. Specific provisions within Zimbabwe’s Capital Gains Tax…
AN independent contractor is a person or entity contracted to perform services for another entity as a non-employee, which offers a higher degree of autonomy than traditional employment. Contractors decide their own work hours, methods, and often juggle multiple clients. They shoulder their own business expenses and must supply their own tools and resources. As…
IFRS 17, issued in May 2017, replaces IFRS 4, governing accounting for insurance contracts from 1 January 2023. It shifts from a premium-centric to a service delivery and risk release model, aiming for a more accurate reflection of insurer performance and revenue recognition timing. It further standardises reporting with expected value and current value measurement…
IN a significant move to stabilise its economy and streamline financial operations, Zimbabwe has introduced the Zimbabwe Gold (ZiG) as its new official currency. This marks a monumental shift in the nation’s monetary policy, aiming to foster stability, restore market confidence, and enhance the functionality of monetary and tax systems. The initial phase of this…
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