Zimbabwe

Corporate - Taxes on corporate income

Last reviewed - 22 November 2019

As of 1 January 2020, the corporate income tax (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. This means that income from a source within, or deemed to be within, Zimbabwe will be subject to tax in Zimbabwe unless a specific exemption is available. The specific circumstances of a transaction should always be considered to determine whether the transaction gives rise to taxation in Zimbabwe.

Income earned by foreign companies from a source within, or deemed to be within, Zimbabwe will be subject to tax in Zimbabwe. In such a case, one should determine whether the foreign entity is obligated to register a local entity. A company is required to register a branch if it has established a place of business or is otherwise considered to be trading in Zimbabwe. A local subsidiary company may be registered as an alternative to a branch operation.

Non-residents who do not have a place of business in Zimbabwe may, however, be subject to withholding tax (WHT). See the Withholding taxes section for additional details.

Local income taxes

There are no provincial or local income taxes payable in Zimbabwe.