Withholding Tax is the amount withheld by the party making a payment (payer) to another (payee) and remitted to the Zimbabwe Revenue Authority (ZIMRA). The amount the payer deducts may vary, depending on the nature of the product or service being paid for. The payee is taxed on the gross amount using the appropriate rate of tax, and the tax withheld (the Withholding Tax) is remitted to ZIMRA on or before the due date.
The purpose of Withholding Tax is to facilitate or accelerate the collection of tax. This is achieved by collecting tax from a reasonable and manageable number of payers rather than a much greater number of payees, and by collecting tax from payers that may be registered already for other revenue heads rather than payees who may be outside the statutory registration requirement. The table below outlines types of Withholding Taxes as well as the applicable rates and due dates.
Withholding Tax
Due Date
Rate of Tax
Non Residents Shareholders' Tax
Within 15 days of the date of distribution
- 10% for dividends from securities listed on stock exchange - 15% for other dividends
Resident Shareholders' Tax
Within 10 days of the date of distribution
- 10% for dividends from securities listed on stock exchange - 15% for other dividends
Non Residents' Tax on Interest
Within 10 days of the date of payment
15%
Non-Residents' Tax on Fees
Within 10 days of the date of payment
15%
Non-Residents' Tax on Remittances
Within 10 days of the date of remittance
15%
Non-Residents' Tax on Royalties
Within 10 days of the date of payment
15%
Residents' Tax on Interest
Within 10 days of the date of payment
15%
Tobacco Levy
Within 15 days of the date of distribution
1.5%
Automated Financial Transactions Tax
By the 10th day of the month following the month in which the transaction was effected
0.50c
Informal Traders' Tax
By the 15th day of the month following the month in which the tax was recovered
10%
Demutualisation Levy
Within three months after issuing to the member
2.5%
Banking Institution Levy
Repealed with effect from 1/01/2010
Intermediated Money Transfer Tax
By the 10th day of the month following the month in which the transaction was effected
0.50c
Withholding Amounts Under Contract
By the 10th day of the month following month of payment
10%
Non-Executive Directors' Fees
By the 10th day of the month following month of payment
20%
Property or Insurance Commission Tax
By the 10th day of the month following month of payment
20%
For further information, please contact your nearest ZIMRA office or visit our stand at the Zimbabwe International Trade Fair (ZITF) Grounds, Hall No. 4 where we will be exhibiting under the theme: “ZIMRA and Business: Unlocking our Investment Potential.”
Article submitted by ZIMRA’s Legal and Corporate Services Division. Their contact details are as follows:
Zimbabwe Revenue Authority Legal and Corporate Services Division 6th Floor, ZB Centre Cnr First Street/Kwame Nkrumah Avenue P O Box 4360 Harare Tel: 04 - 790811-4 Fax: 04 - 774087 E-Mail:
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