The 2017 budget in Zimbabwe was presented on 8 December 2016. As proposed, a definition of "permanent establishment" would be added to the income tax law, so as to capture taxation of attributable profits earned by non-residents when they are not already captured by an income tax treaty or agreement. Also, there is a proposed reduction in withholding taxes on fees paid to non-resident directors, which up to now have been subject to double taxation at an effective rate of 35%. These would only be subject to the 20% withholding tax rate.
There are proposals concerning the value added tax (VAT) zero rating for a number of staple food items including rice, margarine, cereals, maheu, pork, beef, fish, chicken and potatoes, and changes to customs duties imposed across a variety of products such as fabric; printing and packaging materials (both increased); raw materials used in soap manufacture and importation of 30,000 litres of raw wine (reduced).
Among other tax provisions included in the 2017 budget are the following items:
Read a December 2016 report [PDF 1 MB] prepared by the KPMG member firm in Zimbabwe
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