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ZIMRA CORRECTION: 'Tax-free threshold now $3500'

by Zimra
20 Sep 2019 at 14:55hrs | Views
AS A MATTER OF FACT: CORRECTION OF POSSIBLE MISINTERPRETATION THAT MAY ARISE FROM THE ARTICLE PUBLISHED BY THE HERALD IN THE 20 SEPTEMBER 2019 ISSUE ON PAGE ONE TITLED "Tax-free threshold now $3500"

The Herald newspaper on 20 September 2019 published an article titled "Tax-free threshold now $3500" on page 1. In the same paper a Public Notice from Zimbabwe Revenue Authority was published on page 11 titled "Correction Of The August To December 2019 Tax Tables: Income Tax".

Following the publication of Public Notice No. 35 of 2019 on 20 September 2019, in the print media, Zimra noted misleading interpretation that require clarification.

1. Following the 2019 Mid-Year Budget Review by the Minister of Finance and Economic Development on 1 August 2019 Finance Act No 2 of 2019 was gazetted on 21 August 2019. The Finance Act pronounced changes in the tax bands and tax rates on employment income. These new tax bands and tax rates are applicable for the period of five months from 1 August to 31 December 2019. The daily, weekly, monthly tax bands and tax rates are extracted from these five month rates.

2. The tax table in Finance Act No. 2 of 2019 erroneously shows 45% as the marginal tax rate for employees earning $150,001 and above instead of 40%.

Therefore Public Notice No. 35 of 2019 was issued on 20 September 2019 to advise all taxpayers of this correction. The legislation to correct the change from 45% to 40% will be gazetted in due course. However, employers must with immediate effect apply the rate of 40% as the top rate pending the legislation amendments. The rate of 40% is effective from 1 August 2019.

3. The tax tables for calculating tax for employees earning remuneration in Zimbabwe dollars daily, weekly, monthly or annually with effect from 1 August 2019 are as follows:
4. The tax tables for calculating tax for employees earning remuneration in United States Dollars (foreign currency) daily, weekly, monthly or annually with effect from 1 August



For more information and to download these tax tables, please visit our website on www.zimra.co.zw. For any further queries, do not hesitate to contact the nearest Zimra Office.

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Source - Zimra

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