Examining the significant changes introduced by the Finance Act No. 2 of 2024.
The Finance Bill, H.B. 8, 2024, underwent minimal changes, with the exception of the introduction of fees on certain presumptive taxes. It appears that the House leadership prioritized the concerns of thousands of informal traders who were dissatisfied with the fees imposed in the Finance Bill. Consequently, these measures are now legally obligatory for businesses and individuals to comply with.
Corporate Income Tax.
Now legal, under the Finance Act No 2 of 2024 ;
1 August 2024 shall be the effective date.
Payment of Provisional tax (QPDs) in foreign currency.
Companies receiving income in foreign currency and projecting that 50% or more of their income will be in foreign currency must remit 50% of their Quarterly Provisional Payments (QPDs) in local currency and 50% in foreign currency.
For companies whose revenue exceeds 50% in local currency, taxes must be paid in the currency of trade.
Employment Tax.
Now legal, under the Finance Act No 2 of 2024 ;
- Bonus-Free Threshold is now $700 from $400
- Two tax reviews due to change in currency from RTGS to ZiG.
- period beginning on the 1st of January 2024, and ending on the 4th of April, 2024 (RTGS era).
- period beginning on the 5th April, 2024, and ending on the 31st of December, 2024 (ZiG era).
- Intermediated Money Transfer Tax
- IMTT rates are as below as per the finance Act No 2: 2024
| Tax | Amount | Rate |
| Fees | $100 | $0.05 USD |
| IMTT (ZIG) | Any Amount | 2% |
| IMTT (ZIG) | Transaction exceeds the equivalent of $500,000 USD |
$10,150 USD (at the prevailing interbank rate) |
| IMTT (USD) | $500,000 USD | $10,150 USD |
| Outbound foreign payments | 2% | |
| Zimbabwe gold backed digital tokens | 2% |
- Presumptive Taxes
- Major changes from the Finance Bill were witnessed here
| Description | Previous Rates (Monthly) | Proposed Rates (Monthly) |
| Operators of driving schools providing driving tuition for: • Class four vehicles only • Class 1 and class 2 vehicles (whether or not in addition to providing driving tuition for other classes of vehicles) |
USD $300 USD $600 |
USD $50 USD $100 |
| Operators of hairdressing saloons | USD $300 per chair |
USD $5 per chair |
| Informal cross boarder traders | 20% of the value for duty purposes |
20% of the value for duty purposes |
| Informal Traders | 10% of the monthly rentals from which they operate | 10% of the monthly rentals from which they operate |
| Operators of restaurants or bottle stores | USD $300 | USD $35 |
| Cottage industry operators | USD $300 | USD $100 |
| Operators of commercial waterborne vessels with a carrying capacity (including cabin crew) of: • less than 5 passengers per vessel • 6 to 15 passengers per vessel • 16 to 25 passengers per vessel • 26 to 49 passengers per vessel • more than 49 passengers per vessel |
USD $80 USD $100 USD $150 USD $200 USD $300 |
USD $30 USD $35 USD $50 USD $70 USD $100 |
| Operators of commercial water borne vessels of a description referred to in paragraph 2(b) of the definition of commercial water borne vessel in the 26th schedule of the Income Tax Act (that is to say, operators of fishing rigs), |
USD $250 | USD $85 |
| Operators of beauty and massage parlours | – | USD $100 |
| Operators of gymnasia or fitness centre | – | USD $100 |
| Operators of butcheries | – | USD $50 |
