Below are the various taxes applicable to investments on the Zimbabwe Stock Exchange:
- Stamp Duties on purchase of shareA Stamp Duty of 0.25%, that is 25 cents per each $100 or part thereof, is payable on the purchase of shares.
- Tax on Capital Gains (CGT)There is a Capital Gains Tax payable on capital gains realised from the sale of specified assets (immovable property, shares and other securities). The general rate of CGT is 20%. Sale of listed securities is subject to 1% Withholding Tax on the gross proceeds with effect 01 August 2009 and are currently exempt from Capital Gains.Sale of unlisted securities is subject to Withholding Tax at 5% of gross proceeds.
- Withholding Tax on dividends
- Resident Shareholders’ Tax on dividendsA resident shareholder’s tax is deducted at source from dividends paid by Zimbabwean companies. The general rate is 15%. A special rate of 10% applies for companies listed on ZSE.
- Non Resident Shareholders Tax on dividendsA non-resident shareholders tax is deducted at source from dividends paid by Zimbabwean companies. The general rate is 15%. A special rate of 10% applies for companies listed on ZSE.
- Tax on Business ProfitsIncome Tax on business profits are generally taxed at 25% though the rate may differ for specialised industries. This tax is payable on income derived from, or deemed to be from a source within Zimbabwe. In addition a 3% Aids levy based on the tax is charged.
- Tax on Employment IncomeEmployers are required to withhold tax (Pay As You Earn) from remuneration paid to their employees. The rates range from 0% on the low income brackets to 45% on the higher brackets. In addition a 3% Aids levy based on the tax is charged.
- Value Added Tax (VAT)The rate of VAT is 15%. Exemptions and Zero Rating apply on various goods and services that are considered essential.