The government has increased the tax-free threshold to $3 500 with effect from August 1. In a notice, the Zimbabwe Revenue Authority (ZIMRA) said the highest rate on taxable income has been reduced from 45 per cent to 40 per cent. Said ZIMRA:
The Zimbabwe Revenue Authority (ZIMRA) hereby notifies its valued clients that the highest tax rate of 45 per cent on taxable income earned from employment which was gazetted in the Finance Act (7) No. 2 of 2019 is being corrected to 40 per cent.
The necessary legislation amending the highest rate from 45 percent to 40 percent will be promulgated in due course and will be with effect from 1 August 2019.
- Click link to receive Pindula News on WhatsApp: https://wa.me/263733047077?text=add
The widening of the tax-free threshold to $3 500 entails that employees earning below that figure will no longer be taxed. According to a Herald report, the changes are as follows:
Employees earning $3 500 and below will not be taxed, while those earning $3 501 to $15 000 will be taxed at a rate of 20 per cent.
Those earning between $15 001 and $50 000 will be taxed at a rate of 25 per cent; a salary of between $50 001 and $100 000 attracts 30 per cent tax; salaries of between $100 001 and $150 000 attract 35 per cent tax, while salaries of $150 001 and above will be taxed 40 per cent.