2022 income tax brackets, presumptive tax and other adjustments

Act No.7 of 2021, Finance Act has revealed what the income tax structure in Zimbabwe will look like in 2022

“The Schedule (“Credits and Rates of Income Tax”) to Chapter I of the Finance Act [Chapter 23:04] is amended— (a) with effect from the year of assessment beginning on the 1st January, 2022, in Part II by the deletion of the items relating to the level of taxable income earned from employment, and the substitution of the following:”

Act No.7, Finance Act (via Veritas Zimbabwe)

Income Tax Brackets in ZWL$

• Up to ZWL$300 000 – 0%
• ZWL$300 001 to ZWL$720 000 – 20%
• ZWL$720 001 to ZWL$1 440 000 – 25%
• ZWL$1 440 001 to ZWL$2 880 000 – 30%
• ZWL$2 880 0001 to ZWL$6 000 000 – 35%
• ZWL$6 000 001 and over – 40%

Income Tax Brackets in US$

• Up to US$ 1 200 – 0%
• US$1 201 to US$3 600 – 20%
• US$3 601 to US$12 000 – 25%
• US$12 001 to US$24 000 – 30%
• US$24 001 to US$36 000 – 35%
• US$36 000 and over – 40%

According to Act No.7, Finance Act the taxable income for a person that receives their salary partly in United States Dollars shall be taxed as if the income was in USD.

“For the purpose of section 14(2)(a) of the Finance Act, the taxable income from employment of a person who receives such income partly in Zimbabwe dollars and partly in United States dollars shall be taxed as if the income was all denominated in United States dollars, with the Zimbabwe dollar portion of the income being con-verted to its United States equivalent at the interbank rate prevailing when the income was received, and aggregated to the part of the income denominated in United States dollars.”

Act No.7, Finance Act

Presumptive tax amendments

“With effect from the year of assessment beginning on the 1st January, 2022, section 22C of the Finance Act [Chapter 23:04] is repealed and the following section is substituted”

Act No.7, Finance Act

Informal traders

The presumptive tax chargeable in terms of section 36C of the Taxes Act shall be in the case of informal traders, calculated at the rate of three thousand two hundred and fifty dollars per month or small-scale miners, calculated at the rate of zero per centum of each dollar of the purchase price of precious metals or precious stones upon which the tax is chargeable in terms of the Twenty-Sixth Schedule to the Taxes Act.

Minibus and taxi operators

Operators of taxicabs for the carriage of passengers for hire or reward having seating accommodation for not more than seven passengers, four thousand and sixty-five dollars per month for each such taxicab so operated; or

Operators of omnibuses for the carriage of passengers for hire or reward having seating accommodation for not less than eight or more than fourteen passengers, four thousand and sixty-five dollars per month for each such omnibus operated.

Operators of omnibuses for the carriage of passengers for hire or reward having seating accommodation for not less than fifteen or more than twenty-four passengers, four thousand eight hundred and seventy-five dollars per month for each such omnibus so operated; or

Operators of omnibuses for the carriage of passengers for hire or reward having seating accommodation for not less than twenty-five or more than thirty-six passengers, six thousand five hundred dollars per month for each such omnibus operated

Operators of omnibuses for the carriage of passengers for hire or reward having seating accommodation for not less than thirty-seven passengers, eight thousand one hundred and twenty-five dollars per month for each such omnibus so operated;

Haulage and goods carrying vehicles

Operators of goods vehicles having a carrying capacity—

(i) of more than ten tonnes but less than twenty tonnes, forty-eight thousand eight hundred and fifty dollars per month;

(ii) of ten tonnes or less but which is driving one or more trailers resulting in a combined carrying capacity of more than fifteen tonnes but less than twenty tonnes, sixty-five thousand dollars per month;

(iii) of twenty tonnes or more, eighty-one thousand two hundred and fifty dollars per month;

Driving schools

Operators of driving schools providing driving tuition—

(i) for class 4 vehicles only, forty-eight thousand seven hundred and fifty dollars per month;

(ii) for class 1 and 2 vehicles (whether or not in addition to providing driving tuition for other classes of vehicles), sixty-five thousand dollars per month;

Hair dressing salons

Operators of hairdressing salons, four thousand and sixty-five dollars per chair per month;

Informal cross-border traders

Informal cross-border traders, ten per centum of the value for duty purposes of the commercial goods being imported by the traders concerned; or

Hospitality

Operators of restaurants or bottle-stores, sixteen thousand two hundred and fifty dollars per month; or

Cottage industry operators, sixteen thousand two hundred and fifty dollars per month; or

Fishing and watercrafts

Operators of commercial waterborne vessels of a description referred to in paragraph 2(a) of the definition of “commercial waterborne vessel” in the Twenty-Sixth Schedule of the Taxes Act, having a carrying capacity (inclusive of cabin crew) —

(i) of not more than five passengers, sixteen thousand two hundred and fifty dollars, per month, per vessel;

(ii) of six passengers but less than sixteen passengers, twenty-four thousand three hundred and seventy-five dollars, per month, per vessel;

(iii) of sixteen passengers but less than twenty-six passengers, thirty-two thousand five hundred dollars per month, per vessel;

(iv)of twenty-six passengers but less than fifty passengers, forty thousand six hundred and twenty-five dollars, per month, per vessel;

(v)of fifty or more passengers, forty-eight thousand seven hundred and fifty dollars, per month, per vessel; or

Operators of commercial waterborne vessels of a description referred to in paragraph 2(b)of the definition of “commercial waterborne vessel” in the Twenty-Sixth Schedule of the Taxes Act (that is to say, operators of fishing rigs), sixteen thousand two hundred and fifty dollars, per month; or

Other professions

(i) architects registered or required to be registered under the Architects Act [Chapter 27:01], four hundred and six thousand dollars, per month; or

(ii) engineers or technicians registered or required to be registered under the Engineering Council [Chapter 27:22], eight hundred and twelve thousand five hundred dollars, per month; or

(iii) legal practitioners registered or required to be registered under the Legal Practitioners Act [Chapter 27:01], eight hundred and twelve thousand five hundred dollars, per month; or

(iv) health practitioners registered or required to be registered under the Health Professions Act [Chapter 27:19], eight hundred and twelve thousand five hundred dollars per month; or

(v) real estate agents registered or required to be registered under the Estate Agents Act [Chapter 27:17], one million six hundred and twenty-five thousand dollars per month;

Every person liable for presumptive tax has the option to pay the amount of the tax due in United States dollars at the applicable foreign currency auction-rate prevailing on the date of payment.

2022 ZIMRA PAYE USD and ZWL$ Tax Tables

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