Finance Ministry: Tax Payments To Be Made In Zimbabwean Dollar

The Ministry of Finance and Economic Development has announced that corporate tax payments will be made in the local currency as a measure to promote the use of the Zimbabwean dollar in the economy. The Treasury said the government has noted that recent policy measures aimed at stabilizing the economy have led to improved stability in the exchange rate and general pricing of goods and services.

In a statement seen by Pindula News, the ministry said to further promote the use of the Zimbabwean dollar, for the June 2023 Quarterly Payment Date, taxpayers will be required to settle 50% of the foreign currency portion of their corporate tax obligations in local currency. However, taxpayers must settle their tax liabilities exclusively in local currency where the law requires it. The government will not accept any payments in foreign currency for the portion of corporate income tax due in local currency. Corporates are strongly discouraged from engaging in parallel market transactions for tax payments, and usual penalties for late payment of taxes will be applied. The government is committed to continuing currency reforms to achieve lasting price stability. Reads the statement:

PROMOTION OF THE USE OF THE LOCAL CURRENCY IN THE ECONOMY -PAYMENT OF TAXES IN ZIMBABWE DOLLARS

1. Government has noted that following the implementation of various policy measures to stabilise the economy, there has been notable stability in the movement of the exchange rate and general prices of goods and services in the economy.

2. In this regard and to further promote the use of the Zimbabwe dollar in the economy, Government will, for the June 2023 Quarterly Payment Date (QPD), require taxpayers to settle 50% of the foreign currency portion of their corporate tax obligations in local currency.

3. However, where the law requires the tax liability to be paid in local currency, taxpayers are compelled to settle such tax obligations exclusively in local currency. Government will, therefore, not accept any payments in USD or any other foreign currency for the portion of corporate income tax due in local currency for the June QPD.

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4. Taxpayers without adequate Zimbabwe dollars to meet the local currency tax obligation should urgently approach the Reserve Bank of Zimbabwe through their banks to facilitate disposal of their USD holdings in order to access the requisite Zimbabwe dollars.

5. Corporates are strongly discouraged from engaging in parallel market transactions for settlement of taxes as they will face sanctions from the Financial Intelligence Unit.

6. The usual statutory penalties for late payment of taxes due shall be vigorously applied.

7. The Government is committed to continuing the currency reforms that have enabled the economy to be competitive and will continue to fine-tune the foreign currency markets in order to achieve lasting price stability.

This announcement follows several measures introduced by the government aimed at stabilising the macroeconomy and addressing the fast depreciation of the Zimbabwean dollar.

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