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Zimbabwe exempts World Vision from tax

by Staff reporter
02 Jul 2018 at 13:29hrs | Views
Government has waived income tax for expatriate staff of World Vision Zimbabwe (WVZ) and projects financed by the United States (US) government.

This follows provisions provided for under Statutory Instrument 127 of 2018 published in last Friday's Government Gazette.

According to the gazette, the exemption is provided for in the framework agreement, Zimbabwe Economic and technical Cooperation Agreement, signed between the country and the US in 1982.

At the same time, the gazette also noted that with effect from February 1, 2009, the receipts and accruals of WVZ are exempt from income tax.

It adds: "This notice may be cited as Income Tax (Exemption from Income Tax (Expatriate staff of World Vision Zimbabwe notice, 2018," reads the gazette.

"With effect from February 1, 2009, expatriate staff of World Vision Zimbabwe are approved for the purposes of sub-paragraph (iv) of paragraph 4(a) of the Third Schedule to the Income tax Act, as being exempt from income tax on salaries and emoluments in respect of their office. The exemption is to the extent provided in terms of the framework agreement (Zimbabwe Economic and technical Cooperation Agreement) signed between Zimbabwe and the United States in 1982.

"The exemption will be applicable only to projects and programmes undertaken by World Vision Zimbabwe and financed by the government of the United States of America."

World Vision began operating in Zimbabwe in 1973, mainly providing assistance to children's homes and offering relief to Zimbabweans in camps and institutions.

Today, World Vision is among the largest humanitarian organisations in Zimbabwe, operating relief and development projects across the country benefitting more than one million people.

On the flip side of tax concessions, there is need to balance revenue collection efforts as tax concessions tend to erode the revenue base.

During the first quarter of 2018, tax expenditure or revenue foregone amounted to $1 019 billion, which was 47,80 percent of the total potential revenue of $2,1 billion for the same quarter.



Source - dailynews