Check out ZIMRA’s $180,000 a year tax credit for employing under 30s

The Youth Employment Tax Incentive can be found in section Section 13A of the Finance Act (Chapter 23:04) and rewards taxpayers who employ youths (below 30 years) in their companies.

So before we go any further, a tax credit is basically a deduction on the amount you will pay in taxes if you meet the requirements for any offered by the Zimbabwe Revenue Authority which include:

• Mentally or Physically Disabled Persons’ Credit (US$900.00 per annum or $75.00 per month)
• Elderly Person`s Credit (US$900.00 or $75 per month)
• Blind Person`s Credit (US$900.00 or $75 per month)
• Credit for the Cost of Purchasing Invalid Appliances
• Medical Expenses Credit

The credit for each additional employee hired is $1,500.00 per month up to a maximum amount of $180,000.00 per annum.

— ZIMRA (@Zimra_11) December 30, 2021

In this case, companies that are employing individuals below the age of 30 can receive up to a maximum amount of ZWL$180,000 per year if the following terms and conditions are met:

1. The qualifying taxpayer must be a registered taxpayer and have a tax clearance certificate for the preceding year of assessment
2. Youth Employment Tax Incentive can only be claimed after the additional employee has served for twelve consecutive months of employment and should be earning at least two thousand dollars’ Zimbabwean dollars per month (ZWL$2,000.00)
3. The credit for each additional employee hired is ZWL$1,500.00 per month up to a maximum amount of ZWL$180,000.00 per annum.
4. Where the taxpayer has an assessed loss during the year of assessment, the credit shall be added to the assessed loss and the amount is carried forward to the next year of assessment
5. The tax credit will not apply to companies or trusts or individual taxpayers whose annual turnover is equal to or exceeds an equivalent of US$1 million
6. ZIMRA will not refund any excess credit if the credit exceeds the tax payable during the year of assessment.

You should also check out

• 2022 income tax brackets, presumptive tax and other adjustments
• Not changing car ownership will mean no insurance payout
• Change of vehicle ownership fees for second-hand cars have been increased
• 5 New Year’s resolutions for the Zim govt