Zimbabwe: Tax measures in 2024 budget

Tax proposals in national budget statement with corresponding draft Finance Bill

Tax proposals in national budget statement with corresponding draft Finance Bill

The 2024 national budget was presented on 30 November 2023.

The 2024 national budget statement—with corresponding draft Finance Bill—includes the following tax proposals:

  • Expansion of ZWL pay-as-you-earn (PAYE) tables to ZWL 9 million for the year
  • Increase of the tax-free ZWL bonus threshold from ZWL 500,000 to ZWL 7.5 million (with effect from 1 November 2023)
  • Increase of the corporate income tax rate to 25% (from 24%)
  • Increase in the deferment of value added tax (VAT) on capital goods to three years and introduction of penalties on any default
  •  Introduction of a special 20% capital gains tax on the disposal/transfer of mining title/interest post 1 January 2024, when such and title/interest was acquired in the previous 10 years
  • Adjustments to the definition of transactions on which intermediated money transfer tax (IMTT) is chargeable
  • U.S. $5,000 withholding tax exemption threshold for delivery of grain to the Grain Marketing Board (GMB)
  • Introduction of a schedule to the Income Tax Act for the Statutory Motor Insurance Levy
  • Insertion of a section in both Finance Act and Exchange Control Act on outbound foreign currency charge
  • Export tax on un-beneficiated lithium, uncut and cut dimensional stone to increase to 6% from 5% (50% of the 1% increase will be utilised to provide local communities with basic services, improve conditions and rehabilitation of the mining area)
  • Capital gains tax and IMTT exemption on compensation received for the expropriation of a specified assets if recipient listed in Schedule 1 to the Global Compensation Deed (Commercial Farmers)

Read a November 2023 report [PDF 724 KB] prepared by the KPMG member firm in Zimbabwe



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