CUSTOMS REVENUE BANK ACCOUNTS

Clients are encouraged to take advantage of internal transfers

Zimbabwe is amongst the Southern African countries that were affected by Cyclone Idai which caused a trial of destruction that has affected human and animal life, and infrastructure.  The President of Zimbabwe made an appeal to individuals, corporates, civic society and international community to provide assistance to the affected communities mainly in Chimanimani, Chipinge and Bikita.

The Zimbabwe Revenue Authority (ZIMRA) administers regulations which give relief on duties on imported goods donated by international organisations, and to associations and organisations in Zimbabwe involved in charitable or welfare, in terms of Sections 103 and 124 of the Customs and Excise (General) Regulations published in Statutory Instrument 154 of 2001, respectively. The qualifying goods should be for free distribution to people in need. Interested organisations are encouraged to take advantage of these rebates provided for in the cited sections of Regulations in order to reduce any burden of duty payments at this time of need.

1. Section 124 of the Customs and Excise (General) Regulations covers goods that are donated to and imported by associations and organisations in Zimbabwe which are involved in charitable or welfare work. These goods may be imported duty free and VAT free.

1.1 Organisations eligible to enjoy the rebate

a)    Organisations and associations involved in charitable or welfare work and registered with the responsible authority being the Department of Social Services falling under the Ministry of Labour and Social Services.

b)    These organisations should be registered under the Private Voluntary Organisations (PVO) Act Chapter 17:05 and be in possession of a PVO Number.

1.2 Goods that qualify

a)     All goods provided they are fully donated.

b)    Vehicles such as passenger type, commonly known as sedans and station wagons,  passenger carrying vehicles such as buses, minibuses and the like; and other goods carrying vehicles.

1.3 Exclusions

The rebate of duty does not apply in the following circumstances:

a)    Goods purchased from funds obtained from local banking institutions or from local branches of banking institutions registered and operating in Zimbabwe whether or not the funds were donated unless there is proof that the funds were deposited into local banking institutions from a foreign source in order to purchase goods for the use of the charitable organisation

b)    Second hand or used motor vehicles

c)     Road Tractors (“horses” for pulling trailers), agricultural tractors, special purpose motor vehicles such as works trucks, concrete mixers and the like, and motor cycles

d)    New clothing, new shoes and new bed linen

e)    All foodstuffs except where the Minister has directed the Commissioner General to grant the rebate. Foodstuffs can only enjoy the rebate after the Minister of Finance and Economic Development has granted such consent.

1.4 Application procedure

Prior to importation of the donated goods, the organisation or association should submit an application, at the nearest ZIMRA office with written particulars of:

a)     the objects of the association or organisation

b)    the goods in respect of which a rebate is sought, which is the full description of the goods; and

c)     the use to which the goods are to be put; and

d)    evidence of the donation, this  could be in the form of a certificate of donation; and

e)     evidence of purchase of goods by a foreign organisation which is donating the goods. This shall not apply to goods that were not purchased; and

f)      a declaration to the effect that the goods are being imported solely for the purpose of furthering the objectives of the association or organisation; and

g)    an undertaking that the goods will not be sold or be disposed of in Zimbabwe without the prior written permission of the Commissioner and the payment of such duty as maybe due; and

h)    any other details required by the Commissioner.

i)      The above should be accompanied by the certificate of registration with Social Services Department.

The document containing the objectives of the association or organisation, maybe in the form of a trust deed or constitution or any other document that creates the particular organisation or association.

Upon fulfilling the above conditions, a rebate letter will be issued by the Commissioner.

1.5 Clearance of Goods

The goods should be cleared at the Customs office through which the goods are imported. However clearance should be done through a ZIMRA registered clearing agent and all the documents required should be attached.

Goods entered under this rebate should not be disposed of within ten years from the date of their entry under such rebate except with the written permission of the Commissioner and payment of the duty due.

Any contravention of the requirements may result in the seizure of the goods and the organisation or association may be disqualified from enjoying the rebate of duty on future importations for a period of 5 years.

2 Section 103 of the Customs and Excise (General) Regulations covers the importation of goods that are imported by Relief , Welfare and Church Organisations and bodies for free distribution among persons in need may come into the country duty free and VAT free.

2.1 Organisations eligible to enjoy the rebate

Any international or regional organisation, body or agency which has been designated by the Minister as a relief organisation, body or agency.

2.2 Goods that qualify

A rebate of duty shall be granted on such goods imported for free distribution among persons in need as approved by the Commissioner.

2.3 Exclusions

The rebate of duty does not apply to new clothing, footwear and bed linen

2.4 Application procedure

Prior to importation of the donated goods, the organisation should submit an application, at the nearest ZIMRA office with written particulars of:

a)    a certificate to the effect that the goods in respect of which the rebate is claimed are being imported solely for free distribution among persons in need; and

b)    an undertaking that, if the goods are not so distributed they will not be sold or otherwise disposed of without the prior permission of the Commissioner and the payment of such duty as may be due.

Please Note:

In terms of Statutory Instrument 122 of 2017, an import licence should be produced if second hand clothing, second hand shoes, blankets and other related products are to be imported.

For those in the diaspora who want to donate their goods, they should contact Ministry of Labour and Social Welfare on 0242 793  930; 0242  703624

The importation and exportation of currency in and out of Zimbabwe is governed by the Reserve Bank of Zimbabwe (RBZ) in terms of the Exchange Control Act [Chapter 22:05] as read with Exchange Control Regulations Statutory Instrument 109 of 1996 as read with Statutory Instrument 166 of 2024.

IMPORTATION

The importation of any currency into Zimbabwe by travellers is not restricted. This implies that any person can bring in any amount of currency into Zimbabwe. Travellers are urged to complete an original Customs declaration (form 47) showing the amount of currency imported at the time of entry into the country.

The processed declaration form maybe used:

• To support re-export of excess currency when leaving Zimbabwe
• For acquittal of C.D.1 forms for exporters
• As proof of source of funds when required

 EXPORTATION

The exportation of currency from Zimbabwe is restricted.

Following the Exchange Control (General) (Amendment) Order, 2024, the RBZ has revised the export limit without authorization from USD10,000 to USD2,000 or equivalent in foreign currency; and in local currency from an equivalent of USD1,000 to USD2,000.

Non-Zimbabwean Residents:

• who have currencies above allowable threshold may be allowed to export the amount equal to or the balance of the currencies they declared upon arrival.

Zimbabwean Residents:

• Require authorization from the RBZ to export currency above the threshold. In the event that the traveller does not have such an authorisation, no exportation maybe allowed regardless of the fact the currency was declared upon arrival.

All travellers leaving Zimbabwe are urged to strictly adhere to the limits. Any excess currency found in possession of travellers without authority shall be seized and may be forfeited to the State.

Disclaimer

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, (ZIMRA). 

Persons aged 55 years or above are considered as elderly persons for Income Tax purposes and they are eligible to a number of tax concessions. Tax concessions for the elderly provide relief either by reducing the tax payable or removing the tax altogether.

Such concessions are in the form of exemptions and credits granted to elderly persons and are provided for under the Income Tax Act [Chapter 23:06], the Finance Act [Chapter 23:04] and the Capital Gains Tax Act [Chapter 23:01].

Income Tax Act

Exemption on rental income

The rental income accruing to an elderly person, up to a maximum amount of US$3,000 per annum, is exempt from Income Tax. The amount remaining after the exempt portion will be taxed at the normal rates.

Exemption on interest

The first US$3,000 of interest accruing to an elderly person from financial institutions such as savings accounts, fixed term deposits, short term investments and other discounted instruments are exempt from Income Tax. The amount remaining after the exempt portion will be taxed at the normal rates.

Exemption on pension

The whole amount of a pension received by elderly persons from a pension fund or the Consolidated Revenue Fund is exempt from Income Tax.

Exemption on benefit resulting from motor vehicle disposed to elderly person by employer

Where an elderly person, being an employee, receives a motor vehicle either on termination of employment or otherwise, that benefit is exempt from Income Tax. The elderly person receiving the motor vehicle does not pay any tax for that benefit.

Finance Act

Elderly person’s credit

Elderly persons who are in receipt of remuneration are also entitled to an elderly persons’ credit of US$900 per annum. A credit is a sum deducted from the tax chargeable to an individual taxpayer.

Capital Gains Tax Act

Exemption on disposal of property

Where an elderly person disposes of a principal private residence (PPR) (that is his/her main residence), the whole amount received on sale of such property is exempt from capital gains tax. This means that no Capital Gains Tax is payable on the whole amount realised from the sale of the property by an elderly person.

Exemption on disposal of marketable securities

The first US$1,800 that accrues to an elderly person on the sale of any marketable security is exempt from Capital Gains Tax. The amount remaining after the exempt portion will be taxed at the normal rates. Marketable security means any bond, debenture, share or stock that can be sold in a share market.