Zimbabwe: Tax measures in 2023 budget
The budget for 2023 includes proposed amendments
The budget for 2023 includes proposed amendments
The budget for 2023 (presented 24 November 2022) includes the following proposed amendments:
- Expenditure incurred through suppliers who qualify for value added tax (VAT) registration (registered operators), will only be deductible for income tax purposes if supported by fiscal tax invoices. Effective date 1 January 2023.
- Intermediated money transfer tax (IMTT) to be reduced from 4% to 2% on Nostro account US$ transfers to align with local ZWL$ transfers. Effective date 1 January 2023.
- VAT rate to increase to 15%. This includes a supply of imported services, importation of goods and motor vehicles sold by persons who are motor dealers. Effective date 1 January 2023.
- Failure by the banks and financial institutions (financial intermediary) to remit taxes within the stipulated 48-hour period will result in penalties of 15% for US$ and 200% for ZWL$ payments. Effective date time of promulgation of Act.
- The tax tables for the period August 2022 to December 2022 have been annualised for 2023. The monthly tax-free threshold remains at ZWL$75,000. There are no changes to US$ tax tables.
- Introduction of section 25A-25D in the Income Tax Act (registrable taxpayer) subject to notification by the Minister to register such traders as taxpayers based on turnover, average employees, average assets or a combination of the above in the last quarter of the calendar month. Effective date time of promulgation of Act.
- “Licensed investor” means the holder of an investment licence, other than the holder of such a licence whose licensed activity is mining. Effective date time of promulgation of Act.
- To qualify for the real estate investment trust (REIT) exemption certain conditions regarding form, ownership, governance and sectors to develop must be adhered to. Effective date time of promulgation of Act.
- Payment of mining royalties in respect of gold, diamonds, platinum, platinum group metals (PGMs) and lithium to be paid as follows:
- 50% in kind in the form, purity, or quality prescribed by the Reserve Bank of Zimbabwe through a statutory instrument
- 10% in foreign currency (cash)
- 40% in Zimbabwe dollar
Effective date 1 October 2022
Read a November 2022 report [PDF 1 MB] prepared by the KPMG member firm in Zimbabwe
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