Social security contributions
Zimbabwe has a limited social security system. The National Social Security Scheme (NSSS) is compulsory for all resident employees.
NSSS contributions are payable at the same rate of 4.5% of basic salary by the employer and employee. The maximum amount of monthly insurable earnings has been revised from ZWL 5,000 to 75% of the previous month’s Total Consumption Poverty Line (TCPL) for an average of five persons per household, with effect from 12 June 2021.
Manpower training levy
Subject to some exceptions, employers are required to pay a 1% monthly training levy (on the gross wage bill) to the Zimbabwe Manpower Development Authority.
Under the Workmen's Compensation Act, employers are required to contribute to a fund that provides cash benefits for industrial injury, disability, and death. Contribution rates are supposed to vary according to inherent occupational risk, from less than 2% in most low-risk commercial/administrative occupations to 11% for high-risk sectors.
Standards Development Fund
With a few exceptions, employers are required to pay 0.5% of their quarterly gross wage bill to the Standards Development Fund. The amount is payable on all payments made by the employer on behalf of the employee, including medical aid and pension contributions.
Capital gains tax
Capital gains tax applies to the sale of immovable property or shares in private or listed companies. The general rate is 20% of the net gain and 5% of the proceeds for specified assets acquired before 22 February 2019 and disposed of after that date. The rate applicable to shares that are quoted on The Zimbabwe Stock Exchange is 1.5% of the selling price (withheld by the stockbrokers) if the security was held for at least six months and 2% if held for less than six months.
Value-added tax (VAT)
VAT is a transaction tax, and the implications will vary for different transactions. Some transactions are taxed at a rate of 15% (up from 14.5% with effect from 1 January 2023) or 0% while other transactions are exempt from VAT. See the Other taxes section in the Corporate tax summary for more information.
Inheritance, estate, and gift taxes
A rate of 5% is charged on the value of estates exceeding USD 100,000 (or ZWL equivalent), effective 1 January 2022. Exemptions from this duty include the value of a family home and certain life insurance policies.
Property taxes are levied by cities, towns, and rural councils. Each of these bodies conducts periodic valuations of the properties in their area and annually set out a 'rates schedule' based on a percentage of the valuations. These may alter each year depending upon the entities budgetary requirements for funds. Valuations of the properties are usually based on estimates as there are very few qualified property valuators operating in Zimbabwe at present.