Umbrella Company in Zimbabwe

As your permanent employer, umbrella companies are able to sponsor you for your Papua New Guinean work permit provided they’re on the register of approved sponsors. Many different companies offer this service, because it makes contracting in Papua New Guinea infinitely simpler and saves you the hassle of continuous paperwork. Instead of changing your work permit every time you get a new contract, you can just work how you ordinarily would under the same permit. They protect you from the bureaucratic “rain” of legal compliance with the Papua New Guinean immigration authorities. They can even deal with the Papua New Guinean Embassy directly. 

Through their service you may be able to use a business visa to get started quickly and then transition to a work visa in Papua New Guinea. It depends on your specific visa requirements. Be aware you may have to register for a residence permit in Papua New Guinea.

Difficulties of Contracting in Zimbabwe

Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for Zimbabwe.

If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.

Also, are you familiar with the intricacies of the tax system in Zimbabwe, as well as your own country’s laws on overseas earnings? If so, good on you!

However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in Zimbabwe and your home country can seem like full-time work in itself.

How Umbrella Companies Work

Most freelance workers aren’t superheroes who successfully tackle these issues all on their own. There are companies who specialise in helping workers make the most out of their contracts.

They’re called Umbrella Companies (or, contractor management companies).

Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.

Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts in Zimbabwe. Even better, most are experts in Zimbabwe and expat tax law, meaning they’ll also help you optimise your earnings in Zimbabwe.

Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.

Why Use an Umbrella Company in Zimbabwe

Most people want to do their work, earn their money and enjoy their spare time without taking on loads of admin in a new country. That is why an umbrella company can help.

When you’re working through an Umbrella Company, you’ll essentially be outsourcing the admin and tax issues to specialists.

While the umbrella company will charge a fee, you’ll likely end up saving more money in the long run: you’ll be able to focus on your work, expertly reduce your tax liability, and comply with all laws and regulations in Zimbabwe (which means avoiding fees, fines, or even worse penalties).

How We Can Help You

There’s a huge variety of Umbrella Companies with different specialities and advantages in Zimbabwe. How do you find the right one for your circumstances?

We work closely with Umbrella Companies all throughout Zimbabwe and match contractors with the right company for them. If you’ve already secured a contract in Zimbabwe, we can help you find your best match (for free). Or, we can simply give you feedback on your situation (for free). 

 

A Contractor's Guide to Taxes in Zimbabwe

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 in Zimbabwe

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 Filing 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 DeadlineOne month after date of issuance. Non-residents are usually allowed 90 days to file their returns.
Can you file it online?Yes, http://efiling.zimra.co.zw/Pages/default.aspx

How to File Taxes in Zimbabwe

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. 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 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. 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

Tax Figures in Zimbabwe

CurrencyUnited States Dollar (USD)
Tax-free Threshold in ZimbabweUSD 3,600
Income Tax Rates
Grossed Income Tax Rate (%)
First USD 3,600 0%
Next 14,400 20%
Next 18,000 25%
Next 24,000 30%
Next 60,000 35%
Next 60,000 40%
Next 60,000 45%
Above 240,000 50%
Notes

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

Tax Residency in Zimbabwe

When do you become a tax resident in Zimbabwe

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.

Does the 183 day rule apply in Zimbabwe

No

Am I taxed on my global income in Zimbabwe

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.

Can you set up your own Limited Company in Zimbabwe

How long does it take to set up 91 days
How much does it costUSD 585
Is it easy? Starting a Business Rank 183 (World Bank 2017)

Tax Calculator in Zimbabwe

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 in Zimbabwe

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 in Zimbabwe

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!

 

A Contractor's Guide to Work Permits in Zimbabwe

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!

 

How Can Umbrella Companies Help You Get a Work Permit in Zimbabwe ?

As your permanent employer, umbrella companies are able to sponsor you for your TEP provided they’re on the register of approved sponsors. Many different companies offer this service, because it makes contracting in Zimbabwe infinitely simpler and saves you the hassle of continuous paperwork. Instead of changing your work permit every time you get a new contract, you can just work how you ordinarily would under the same permit. They protect you from the bureaucratic “rain” of legal compliance with the Zimbabwean immigration authorities. They can even deal with the Zimbabwean Embassy directly. 

Through their service you may be able to use a business visa to get started quickly and then transition to a work visa in Zimbabwe. It depends on your specific visa requirements. Be aware you may have to register for a residence permit in Zimbabwe.

 

Client comment

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Shell International Trading & Shipping