Zimbabwe Stock Exchange : Providers of your Financial Data.

Taxation

Below are the various taxes applicable to investments on the Zimbabwe Stock Exchange:

  • Stamp Duties on purchase of share

    A Stamp Duty of 0.25%, that is 25 cents per each $100 or part thereof, is payable on the purchase of shares.

  • Tax on Capital Gains (CGT)

    There is a Capital Gains Tax payable on capital gains realised from the sale of specified assets (immovable property, shares and other securities). The general rate of CGT is 20%. Sale of listed securities is subject to 1% Withholding Tax on the gross proceeds with effect 01 August 2009 and are currently exempt from Capital Gains.

    Sale of unlisted securities is subject to Withholding Tax at 5% of gross proceeds.

  • Withholding Tax on dividends

    • Resident Shareholders’ Tax on dividends

      A resident shareholder’s tax is deducted at source from dividends paid by Zimbabwean companies. The general rate is 15%. A special rate of 10% applies for companies listed on ZSE.

    • Non Resident Shareholders Tax on dividends

      A non-resident shareholders tax is deducted at source from dividends paid by Zimbabwean companies. The general rate is 15%. A special rate of 10% applies for companies listed on ZSE.

  • Tax on Business Profits

    Income Tax on business profits are generally taxed at 25% though the rate may differ for specialised industries. This tax is payable on income derived from, or deemed to be from a source within Zimbabwe. In addition a 3% Aids levy based on the tax is charged.

  • Tax on Employment Income

    Employers are required to withhold tax (Pay As You Earn) from remuneration paid to their employees. The rates range from 0% on the low income brackets to 45% on the higher brackets. In addition a 3% Aids levy based on the tax is charged.

  • Value Added Tax (VAT)

    The rate of VAT is 15%. Exemptions and Zero Rating apply on various goods and services that are considered essential.

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