Last reviewed - 22 November 2019

Zimbabwe, a landlocked country in Southern Africa, is bordered by Zambia to the northwest, Mozambique to the east, South Africa to the south, and Botswana to the southwest. Zimbabwe, which the United Kingdom annexed as Southern Rhodesia from the British South Africa Company in 1923, obtained its independence in 1980. It is divided into eight provinces and two cities with provincial status. Zimbabwe's capital is Harare, and the official languages are English, Shona, and Ndebele.

Since the Zimbabwe dollar (ZWD) was demonetarised in April 2009, the main currency used (amongst a basket of 19 international currencies) is the United States dollar (USD). However, in order to deal with USD bank balances, which are not supported by real bank notes, the Reserve Bank of Zimbabwe (RBZ), on 22 February 2019, issued Statutory Instrument number 33 of 2019, introducing a new local currency called the RTGS dollar (RTGS stands for Real Time Gross Settlement - a system for transferring funds electronically). In the Statutory Instrument, the RBZ defined the RTGS dollar as "means any funds held as bank deposits under the Real Time Gross Settlement system established in terms of the National Payment Systems Act [Chapter 24:23]". The Statutory Instrument further states that "that the Reserve Bank has, with effect from the effective date, issued electronic currency called the RTGS dollar". All local trading and preparation of financial statements must be in RTGS dollars. Taxes must be paid in RTGS dollars except in cases where the revenues earned are in another currency.

Zimbabwe has had a troubled investment environment in the recent past. This was largely due to an unstable political situation and the land reform policy that the government embarked on. The land reform programme, in brief, entailed the grabbing of white-owned land to resettle landless black people. The government's position has been that the reform programme was agreed on with the former colonisers and had just been pending implementation.

The political situation has relatively stabilised following the ruling party ousting the former President and replacing him with a former Deputy President. The ‘new’ government has been trying to attract foreign investment with limited success, whilst they are attempting to improve the country's investment policy (ease of doing business).

Zimbabwe opposes foreign domination of certain sectors of its economy. In this regard, the investment legislation, on the one hand, prescribes local participation requirements in most enterprises and, on the other hand, provides for limited investment protection and investment incentives. The indigenisation laws that used to require 51% ownership of all foreign-owned companies have been abolished.

Various tax incentives have been introduced in an attempt to grow foreign direct investment (FDI). The main efforts in this regard has been the introduction of Special Economic Zone (SEZ) legislation. Some SEZs have been announced, and there are numerous applications in the pipeline. No other significant developments have occurred.

PwC Zimbabwe supports clients with the local knowledge and skills of its people and with access to a broad range of other professionals across the PwC global network of firms. This is especially true regarding the close relationship that the Zimbabwe office has with other firms across Africa.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%) 25.75 (to be reduced to 24.72% effective 1 January 2020)
Corporate income tax (CIT) due dates
CIT return due date 30 April
CIT final payment due date 25 December (of current year)
CIT estimated payment due dates First payment: 25 March;
Second payment: 25 June;
Third payment: 25 September;
Fourth payment: 20 December.
Personal income tax (PIT) rates
Headline PIT rate (%) 46.35
Personal income tax (PIT) due dates
PIT return due date 30 April (individuals who work for a full tax year and whose employers deduct employees tax on what is called the Final Deduction System are not required to file returns except in defined exceptions).
PIT final payment due date Where a return is filed, usually within 30 days of the date of assessment.
PIT estimated payment due dates Payments by 25 March (10%), 25 June (25%), 25 September (30%), and 20 December (35%) apply to individuals earning income from a trade, profession, or business as sole traders. Those in employment have the employer withhold on a monthly basis.
Value-added tax (VAT) rates
Standard VAT rate (%) 15 (to be reduced to 14.5% effective 1 January 2020)
Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy) Resident: NA / 15 / NA;
Non-resident: 15 / 0 / 15
Capital gains tax (CGT) rates
Corporate capital gains tax rate (%) 20
Individual capital gains tax rate (%) 20
Net wealth/worth tax rates
Headline net wealth/worth tax rate (%) NP
Inheritance and gift tax rates
Inheritance tax rate (%) There is no inheritance tax. However, there is an estate tax of 5%.
Gift tax rate (%) NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.