Zimbabwe’s tax system follows a territorial approach, meaning only income sourced within the country is taxed. Corporate tax stands at 24.72%, while personal income tax reaches up to 41.20% on a progressive scale. Inheritance tax is set at 5%, with no wealth or gift taxes in place. The country enforces anti-avoidance rules, including Transfer Pricing and Thin Capitalization regulations, but lacks Controlled Foreign Corporation (CFC) rules. While Zimbabwe has Double Tax Treaties (DTTs) with select countries, it is not part of global tax transparency frameworks like CRS or FATCA.
Zimbabwe’s Tax System overview
| Corporate Income Tax: | 24.72% |
| Personal Income Tax: | 41.20%, progr. |
| Gift Tax: | None |
| Inheritance Tax: | 5% |
| Wealth Tax: | None |
Legal System
The legal system in Zimbabwe is based on English Common Law, Dutch-Roman law, and customary tribal law.
Territorial Taxation Regime
Zimbabwe applies the tax principle of territoriality, and income tax is levied on Zimbabwean source income only.
Corporate Income Tax
Corporations incorporated in Zimbabwe are taxed on Zimbabwean source income, and income deemed to be Zimbabwean source, at 24.72%.
Personal Income Tax (PIT)
Zimbabwean resident individuals are taxed on Zimbabwean local source income at progressive rates up to 41.20%.
Anti-Avoidance Rules
Zimbabwe has General Anti-Avoidance Rules, as well as Transfer Pricing and Thin Capitalization rules. Zimbabwe does not have Controlled Foreign Corporation (CFC) rules.
Double Tax Treaties (DTTs)
Zimbabwe has DTTs with a number of jurisdictions, including Canada, Mauritius, Netherland, South Africa, and the United Kingdom.
Foreign Investment Protection
Zimbabwe has agreements with a number of jurisdictions for the protection of foreign investments that provide for international arbitration in the event of nationalization or expropriation, including with the Netherlands, South Africa, and Switzerland.
OECD Multilateral Convention
Zimbabwe is not a signatory to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. The Convention requires signatories to exchange information “on request,” and authorizes spontaneous and automatic exchange.
Common Reporting Standard (CRS)
Zimbabwe has not signed the Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of financial account information under CRS, and has not committed to join CRS.
FATCA
Zimbabwe does not have a FATCA Intergovernmental Agreement with the United States for the automatic exchange of account information, and is not treated as having an agreement in substance.
