Zimbabwe’s Minister of Finance and Economic Development approved the Finance Bill ahead of other amendments.
These amendments will give effect to various fiscal measures mentioned by the Minister of Finance in the National Budget Statement delivered on the 26th November 2020 and make certain modifications to improve revenue collection and administration.
The final Finance (No. 2) Bill 2020 Memorandum was published on 14 December. This gives effect to the amendments of the Finance Act [Chapter 23:04], the Income Tax Act [Chapter 23:06], the Value Added Tax Act [Chapter 23:12], the Customs and Excise Act [Chapter 23:02] and other Acts.
Clause 4 and 5 of the Bill alter the income tax bands on the basis of which rates of income tax are calculated in terms of section 14 of the Finance Act.
The PAYE tax free threshold will be increased from ZWL 5,000 to ZWL 10,000 per month, effective 1 January 2021.
Clause 17 amends the Third Schedule to the Income Tax Act by increasing the bonus tax-free threshold from ZWL5 000 to ZWL25 000 per annum, with effect from 1 November 2020.
View the Finance Bill (No. 2) 2020 here.
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