Exempt Income In Zimbabwe

Income means the amount remaining of the gross income of any person for any such year after deducting there from any amounts exempt from income tax under this act.

Exempt income in zimbabwe. In addition any disallowed interest will be treated as a deemed dividend and. Interest paid from a source within zimbabwe or payable by a person who is ordinarily resident in zimbabwe to a non resident is charged withholding tax at 10. Examples of exempt supplies. Exemptions to this tax are posb tax reserve certificates 4.

If so please provide a general definition of these areas. Zimbabwe personal income tax nb. The 3 aids levy. The tax brackets below have changed.

Income derived or deemed to be derived from sources within zimbabwe is subject to tax. Please click here for updated tax tables. Zimbabwe individual income tax is imposed at progressive rates up to 35. Tax exempt income are there any areas of income that are exempt from taxation in your country territory.

It has been indicated that zimbabwe is considering moving to a residence based system during the current tax reform exercise. Zimbabwe has thin capitalisation rules based on a 3 1 debt to equity ratio. Assume then for a moment that everything you earn be it in cash benefits or an item of value given instead of cash is subject to some form of tax. A portion of the overall interest may be disallowed if this ratio is exceeded.

It also deals with what income is exempt from tax and what deductions are allowed from these earnings prior to tax being calculated. Taxable income means the amount remaining after deducting from the income of any person all the amounts allowed to be deducted from income under this act. 1 types of income dividend income pensions and other benefits specified non residents interest interest exemption local dividends royalties to non residents fringe benefits 2 types of. Rent arising in respect of land and buildings situated outside of zimbabwe however is exempt from local tax.

Income that is specifically provided to be exempt in the legislation.