Tax In Zimbabwe

A Contractor’s Guide to Taxes :

One of the most consistently challenging aspects of contracting in Zimbabwe is complying with the country’s tax system. As well as paying tax in Zimbabwe, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income:

If you’re working in Zimbabwe under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Zimbabwe for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Zimbabwe, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Zimbabwe through PAYE is left with the prospect of doing everything themselves.

Do you know much about Zimbabwe Tax Law? Does Zimbabwe have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Zimbabwe can range from 0 to 50 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator:

If you are a contractor and want a calculation on your tax and net retention in Zimbabwe, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax :

Contractors in Zimbabwe are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Zimbabwean umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Zimbabwean taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Zimbabwean tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax:

We work with numerous umbrella companies in Zimbabwe, many of whom are experts in tax and immigration laws. If you have any questions about tax in Zimbabwe, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Zimbabwean work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Zimbabwe but without the overhead of directly dealing with the Zimbabwean tax authorities. Get in touch with us today for some reliable advice on tax in Zimbabwe!

 

When Do You Need to Lodge Your Tax Return?:
The tax year is the calendar year. Tax returns are issued in March and must be filed one month after date of issuance.
Tax Filing Deadline :
One month after date of issuance. Non-residents are usually allowed 90 days to file their returns.
Can you file it online? :
Yes, https://efiling.zimra.co.zw/Pages/default.aspx
Currency:
United States Dollar (USD)
Tax-free Threshold in:
USD 3,600
Grossed Income:
First USD 3,600
Tax Rate:
0%
Grossed Income:
Next 14,400
Tax Rate:
20%
Grossed Income:
Next 18,000
Tax Rate:
25%
Grossed Income:
Next 24,000
Tax Rate:
30%
Grossed Income:
Next 60,000
Tax Rate:
35%
Grossed Income:
Next 60,000
Tax Rate:
40%
Grossed Income:
Next 60,000
Tax Rate:
45%
Grossed Income:
Above 240,000
Tax Rate:
50%
How long does it take to set up:
91 days
How much does it cost:
USD 585
Is it easy? :
Starting a Business Rank 183 (World Bank 2017)
How to File Taxes in:

Employers withhold tax under the PAYE system. Individuals employed by a single employer for a full fiscal year are taxed under the Final Deduction System and are not required to file returns unless they receive taxable income from another source. The process for filing tax returns in Zimbabwe involves:

Step 1: Register for an e-Services account here(link is external). You will be required to fill in your personal details and enter in one form of identification. After submitting the form, you will receive a verification link via your email. Click the link and a confirmation will appear on the screen.

Step 2: Login(link is external) to e-Services with your username and password.

Step 3: Complete form ITF 1 (Income Tax Return). Printable copies of the tax forms may be downloaded here(link is external). To complete ITF 1, you will be required to have the following:

  • National Registration Number (T.I.N)
  • Amounts of all earnings for the tax year for which you are filing.
  • Deductions: membership of any associations, donations, contributions to registered pension.
  • Employer’s tax certificate (Form P.6).

Step 4: Submit your tax return.

Step 5: If there are any outstanding taxes due, it must be paid within one month. This may be done online.

Additional Information

Notes:

A 3% AIDS levy is imposed on the cumulative tax due.

Does the 183 day rule apply in:

No

When do you become a tax resident in:

The terms “resident” and “ordinarily resident” are not defined in legislation. Residential status depends on the facts and circumstances indicating a degree of presence. Residence, domicile, and citizenship are not normally relevant, and there are no special concessions for non-residents unless a tax treaty applies.

Am I taxed on my global income in:

All individuals are subject to income tax on income accrued from a source in Zimbabwe. Compensation for services rendered in Zimbabwe is deemed to be derived from a Zimbabwean source, regardless of where the payment is made or where the payer resides.

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