The Zimbabwe Revenue Authority (Zimra) is mulling severe tax penalties to force public and private entities to pay huge amounts of outstanding tax obligations. The bulk of the debt is from companies' failure to make correct tax assessments. The domestic tax debt stands at ZiG348,33 million and a further US$308,03 million, whilst trade taxes amount to ZiG506,39 …
Presumptive Tax is a strategic tool used by ZIMRA to widen the tax net, especially in the informal sector, which is a significant part of Zimbabwe's economy. This tax regime is supposed to simplifiy the tax-paying process for small-scale businesses and informal traders, making it easier for them to comply with their tax obligations.
As of 1 January 2020, the effective CIT rate for companies (other than mining companies with special mining leases, but including branches) is reduced to 24.72% (previously 25.75%). This rate includes a base rate of 24% plus a 3% AIDS levy. Zimbabwe presently operates on a source-based tax system.
In a significant legal victory for Zimbabwe Alloy Smelting Company (ZIMASCO), the High Court has ruled that the Zimbabwe Revenue Authority (ZIMRA) cannot collect mining royalties on chrome ore concentrates and ferrochrome produced by the company prior to January 2022. This ruling prevents ZIMRA from claiming over US$10 million and nearly ZWL$1 billion …
With the general election in sight, the Zimbawean government has been offering generous tax exemptions to mining entrepreneurs from which fledging company Kygar …
Fidelity Printers engages Zimra on taxes. January 7, 2022; 0 Shares. NEWS. ZIMRA calls for vehicle verification exercise, 433 affected ... NEWS. Ban All Foreign Small-Scale Gold Mining in Zimbabwe. August 27, 2024; 0 Shares. NEWS. MMCZ Mulls Export Exemption Certificates for Gemstone Miners ... Ensure Accountants are Well-Versed in Law to ...
Taxes on personal income Residence Other taxes Income determination ... Mining company holding a special mining lease. Taxed at a reduced rate of 15%. Taxed at 24.72%. Operator of a tourist facility in a tourist development …
Any mining company holding a mining license carrying on the mining of base metals is taxed at 30%. 5. Dividends paid by a mining company holding a mining license ... 13. Reduced standard company tax rate of 30% for companies. 14. Reduced standard company tax rate of 30% for the first K250,000 income of an electronic communications
Mining And Quarrying 5 Mining of coal and lignite 51 510 Mining of hard coal 52 520 Mining of lignite 6 Extraction of crude petroleum and natural gas 61 610 Extraction of crude petroleum 62 620 Extraction of natural gas 7 Mining of metal ores 71 710 Mining of iron ores( Iron 72
In this article Mining Law Expert Selina Zhuwarara outlines the Major Mining Tax Highlights for 2022. Amendments to the Finance Act which came into effect on the 1 st of January 2022 brought changes to the royalty rates in platinum and gold. Significant to the changes it the allowance for a 3% royalty rate on gold where global prices are below ...
The platinum mining company had claimed this was mainly because its income and expenditure were predominantly in foreign currency and only marginally in local currency. ... (Zimra)'s ...
Responding to mining Zimbabwe's question "What fiscal incentives or tax policies do we have in place to encourage mining investment and ensure a competitive environment for foreign companies seeking to invest in Zimbabwe?" this is what the Minister of Mines and Mining Development said. INCOME TAX. Allowable Deductions/ Expenditure . All capital expenditure …
Visit the ZIMRA stand at MineEntra 2024 & learn more about tax exemptions for mining companies, compliance requirements, recent regulatory updates, and investment opportunities in Zimbabwe's ...
Since 2018 Zimbabwe has re-focused its attention on the mining industry's potential, thus re-structuring its policies and regulatory framework. In this article our Mining …
The income tax return for companies and trusts is ITF 12 and this return should be accompanied by financial statements. Employment Income Cases: Persons in receipt of income which solely consists of remuneration which has been subjected to employees tax (PAYE) are not required to furnish income tax returns. Exceptions include those who left ...
A tax clearance certificate is a document that is issued by ZIMRA to a person liable to pay tax under any of the Acts administered by ZIMRA. +263 242 761 421 | +263 774 447 762 info@ ... It is a requirement by the law in Zimbabwe for every Bank to open a bank account only for companies with tax clearance. ZIMRA Registration (BP Number) ...
To strengthen citizen data-driven advocacy to hold government and mining companies accountable on curbing IFFs and mineral revenue leakages, the Zimbabwe Alternative Mining Indaba (ZAMI) conducted a breakaway session on Domestic Resource Mobilisation (DRM) in Bulawayo. ... (ZIMRA) should publicly disclose mining tax contribution …
The expenditure may take the form of surveys, sinking of boreholes, digging of trenches and pits, and other prospecting and exploratory works undertaken for the purposes of acquiring rights to …
19A. Non-resident companies: basis of charge to and determination of company tax 19B. Meaning of "permanent establishment" 20. Special provisions relating to insurance business. 21. Special provisions relating to petroleum operations. 22. Special provisions relating to special mining lease operations. 23.
Since 2018 Zimbabwe has re-focused its attention on the mining industry's potential, thus re-structuring its policies and regulatory framework. In this article our Mining Law Practice group outlines the Major Mining Tax Highlights for 2024. The new Finance Act, 2023 (No. 13 of 2023),which came into operation on the 1st of January 2024 implements most […]
Dividends from foreign companies, which are liable to income tax in the hands of a taxpayer ordinarily resident in Zimbabwe, are taxable (at a flat rate; without any deduction for related expenditure.) ... (where the parent is a foreign company engaging in local mining operations). ... ZIMRA shall not accept responsibility for loss or damage ...
A holder of a special mining lease, corporate income is taxed at a special rate of 15% instead of the general tax rate of 25%. However, holders of a Special Mining Lease are …
Mining Companies. All capital expenditure on exploration, development, and operating incurred wholly and exclusively for mining operations is allowed in full. There is no restriction on carryover of tax losses; these can be carried forward for an indefinite period. Taxable income of a holder of special mining lease is taxed at a special rate of ...
Zimbabwe's largest brewer, Delta Corporation is still embroiled in a tax dispute with the country's tax collector, ZIMRA, a situation which could have a material impact on the viability of the group, Business Times can report. The legal dispute arose from ZIMRA's determination that Delta underestimated its tax.
a schedule of payments made to ZIMRA on or before the 10th day of the month following the month in which they were deducted. 5. The mineral exporters (mining companies or persons) shall be required to complete the return Rev 5Cs in USD and ZWL respectively and submit it to ZIMRA on or before the 10th day of the
In a landmark ruling, Zimasco has emerged victorious in a legal battle against the Zimbabwe Revenue Authority (Zimra), securing a judgment that absolves the company from paying US$10 million in royalties.This decision follows an extensive examination of Zimasco's tax affairs, particularly concerning the calculation of royalties from 2019 to 2022.
The importer`s tax record should be up to date. Non-filers do not qualify. Which goods are of a capital nature? Goods of a capital nature refer to specific prescribed plant, machinery or equipment used exclusively for: Mining purposes on a registered mining location as defined in the Mines and Minerals Act[Chapter 21:05]; or
information can be obtained from the Finance Act which is available on the ZIMRA website. INCOME TAX 1. Rates of Income Tax With effect from 1 January 2024 the tax free threshold was increased to ZWL$9,000,000.00 for ... company or trust derived from mining operations; v. industrial park developer after 5 years of operations as such;
Details. Reference. Maximum amount allowed 2024. Donations to National Scholarship Fund, National Bursary Fund and charitable trusts. Sect 15(2)(r)
Zimra asserted that the use of the ex-works value was incorrect, citing Section 37 of the Finance Act. This section stipulates that mining royalties must be calculated based on the face value of the invoice. Zimra's letter concluded with a recalculation of mining royalties for the period 2019 to September 2022 and the imposition of a penalty.
In terms of the Value Added Tax (VAT) Act [Chapter 23:12], VAT is levied on the supply of goods and services as well as on the importation and exportation of goods and/or services. Taxable supplies attract VAT at a specified rate (which can be 15%, 5% or 0% or any other rate as may be specified by the Minister).
Income Tax. All clients, including individuals, companies, partnerships and cooperatives who want to venture into any business are required to register with ZIMRA and comply with all obligations as stipulated in the legislation. Clients can register on the TaRMS platform in the comfort of homes and offices by following the instructions below:
A source in the diamond mining sector revealed that last week that Zimra issued a number of garnishee orders against bank accounts of diamond mining companies. "All diamond mining companies at Chiadzwa were slapped with garnishee orders in an effort by the authority to shore up its revenues at this crucial phase when it needs to pay civil ...
Visit the ZIMRA stand at MineEntra 2024 & learn more about tax exemptions for mining companies, compliance requirements, recent regulatory updates, and investment opportunities in Zimbabwe's mining sector, including foreign investment initiatives and local support programs. #mineentra2024
A ZIMRA spokesperson said they were not able to provide an immediate comment. ... 2022 to allow mining companies to pay 50% of their royalties in local currency, Unki argues the Zimbabwe dollar ...
