Zimbabwe: Tax Measures in 2022 Finance Bill and 2022 Budget

Zimbabwe: Tax Measures in 2022 Finance Bill and 2022 Budget

On 25 November 2021, Zimbabwe’s 2022 Budget was presented by the Honourable Mthuli Ncube, Minister of Finance and Economic Development.

The budget theme for 2022 is “Reinforcing Sustainable Economic Recovery and Resilience”.

A draft finance bill was then published in early December.

On 10 December 2021, the National Assembly of Zimbabwe approved the 2022 Budget.  


We have summarised the key fiscal highlights from the 2022 Budget Statement the draft Finance Bill.




Amendment to the definition of “tax invoice” and “fiscal tax invoice”.


Section 2 and section 20 of the Zimbabwe VAT Act will be amended.

There is a consolidation of the two words in that “tax invoice” and “fiscal tax invoice” will have the same definition.

“Tax Invoice” means a fiscal tax invoice provided by a registered operator and printed by a fiscalised electronic register or fiscal memory device used by a registered operator.

It will also be a requirement that on tax invoices, the words “fiscal tax invoice” be present in a prominent place.

This will take effect from 1 January 2022.


Use of old tax invoices


Tax invoices generated before 31 December 2021 may be claimed no later than 31 March 2022.


Tax clearance certificate


Taxpayers not compliant with their tax obligations or in arrears of tax payments will no longer be issued with a tax clearance certificate.


VAT exemption


VAT exemption on accommodation and other tourist services is extended by 1 year.

This will take effect from 01 August 2021.


Income Tax


Credit for employment of physically challenged persons


A tax credit of USD 50 per month will be granted for each additional employee who is physically challenged and who has served not less than 12 consecutive months earning a wage equal to or above the minimum taxable threshold.

The amount of credit claimed is limited to a maximum of USD 2250 per year of assessment.

This will take effect from 1 January 2022.


Income Threshold


It was proposed that the monthly tax-free threshold is reviewed from ZWL 10,000 to ZWL 25,000.

The tax bands will also be adjusted to end at monthly ZWL 500,000 above which a marginal tax rate of 40% will apply.


New Annual Income Threshold:

  • ZWL 0 – 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 2,880,001 to ZWL 6,000,000 – 35%
  • ZWL 6,000,001 and more – 40%


This will take effect from 1 January 2022.



There is a new cap of USD 100,000 converted at the auction rate prevailing on the day the donation for donations to be treated as allowable deductions.

This applies to donations to medical institutions run by the government, religious institutions and local authorities. The donations must also relate to the purchase of medical equipment, construction, extension or maintenance of a hospital or the procurement of drugs to be used in a hospital.

This will take effect as from the year of assessment beginning 1 January 2022.


WHT on tenders


The threshold for withholding tax on tenders has been increased to ZWL 120,000 or USD 1000.

Previously the limit was ZWL 80,000.


Remuneration definition


Effective from 1 January 2022, the definition of remuneration will exclude all payments relating to non-executive directors and fees paid to board members of statutory corporations.

Also effective as from 1 January 2022, the definition of remuneration will exclude non-executive director fees on which withholding taxes has been charged.


Importation of capital equipment


Incorporated companies will be allowed to import capital equipment duty-free if the minimum costs of equipment are USD 10,000.


Definition of “advantage or benefit”


The definition of advantage or benefit has been amended in the definition of gross income.

This will take effect from 1 January 2022.

Under the new definition, “advantage and benefit” now include 30% of the costs of the provision by the employer to the employee for use at the home of the employee or outside of the work premises of airtime and data.


Disclosure of particulars of beneficial owners


It is proposed to amend section 77 of the income tax act so that taxpayers filing returns of income for legal entities are required to disclose particulars of beneficial owners.


Withholding of amounts payable under contracts with State or statutory corporations


Currently, the government or statutory body withholds 10% on all payments made to persons who enter into contracts with the government or statutory bodies and who have not submitted income tax returns for the latest year of assessment.

The amount to be withheld has been increased to 30%.

To stop this withholding, a tax clearance certificate needs to be furnished.


Capital gains – Marketable Security


The rates in case of a sale of marketable security:

  • 1.5% of the sale price if the security was held for at least 6 months
  • 2% of the sale price if the security was held for less than 6 months


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