Zimbabwe

Corporate - Tax credits and incentives

Last reviewed - 22 July 2022

Foreign tax credit

Where foreign income is taxed in Zimbabwe, a tax credit (limited to the amount of local tax suffered) will be set off against the local tax liability.

Special Economic Zones (SEZs)

Tax incentives have been announced for investors locating their business in SEZs. The businesses in these SEZs will be exempt from duty on goods and equipment that are consumed in establishing the business, will be tax exempt for the first five years, and will have a 15% tax rate thereafter.

Physically challenged persons employment tax credit

Qualifying taxpayers can claim a monthly physically challenged persons employment tax credit of USD 50 (or the ZWL equivalent) for each additional physically challenged employee with effect from 1 January 2022. The tax credit is limited to an aggregate amount of USD 2,250 (or the ZWL equivalent) per year of assessment.

Youth employment tax credit

The youth employment tax credit to be deducted from the income tax payable by a qualifying taxpayer shall be ZWL 1,500 per month for each additional employee, effective 1 January 2020. However, the aggregate amount to be granted as a credit for all additional employees shall not exceed ZWL 180,000 per year.

Other incentives

Note that this is a high-level summary, and certain conditions should be met in order to utilise these incentives.

Person for whom incentive is available and duration of incentive Tax incentive Tax treatment for normal taxpayers
For all taxpayers in build, own, operate, and transfer (BOOT) or build, operate, and transfer (BOT) arrangements. First five years: Taxed at 0%.
Second five years: Taxed at 15%.
Thereafter: Taxed at normal rate.
Taxed at 24.72%.
Exporting taxpayers. An additional allowance of 100% of cost incurred in an export country in order to export Zimbabwean goods to such country may be deducted. Export expenditure incurred is deductible for tax purposes.
For all manufacturing taxpayers exporting (by volume). 30% to 40% at 20.6%.
41% to 50% at 18.025%.
Over 51% at 15.45%.
Taxed at 24.72%.
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 zone. First five years: Taxed at 0%.
Thereafter: Taxed at normal rate.
Taxed at 24.72%.
Industrial park developer. First five years: Taxed at 0%.
Thereafter: Taxed at normal rate.
Taxed at 24.72%.