When can a cession agreement be used?

  • A Cession agreement may be used where the rights and obligations under an agreement to own a specified asset need to be ceded and assigned to another party.

How does Capital Gain Tax accrue on a cession agreement?

  • When one cedes their rights under a cession agreement, capital gains tax has to be accounted for in terms of Section 8 (2) (g) of the Capital Gains Tax Act Chapter [23:01] which states that;

where a person transfers to another person his or her rights in a residential, commercial or industrial stand, whether or not the stand is serviced and whether or not his or her title to the stand is registered under the Deeds Registries Act [Chapter 20:05], he or she shall be deemed to have sold a specified asset to that other person for an amount equal to the whole amount received by or accruing to him or her as a result of the transfer;


Who should account for capital Gains Tax under a cession agreement?

  • The party ceding their rights to own the specified asset should account for Capital Gains Tax.


Documents required for processing of a Capital Gains Tax certificate

  • A completed and signed CGT 1 form
  • If not registered with ZIMRA a completed and signed Rev 1 form
  • Cession/ deed of donation/Offer letter/agreement of sale from the City Council
  • Agreement of sale
  • Copy of proof of payment
  • National identification card for the seller and buyer


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This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.