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Finance Minister Makes Changes To The 2 Percent Tax

Finance Minister Makes Changes To The 2 Percent Tax

Finance Minister, Professor Mthuli Ncube has through Statutory Instrument 96 of 2022 amendment of Sections 22B, 22G and 39 of the Finance Act. The sections, in that order, are on the Intermediated Money Transfer Tax, known as the 2 per cent tax, the Automated financial transactions tax and Rates of capital gains tax withholding tax. We present the SI below:

[CAP. 23:04 Finance (Amendment of Sections 22B, 22G and 39 of Finance Act) Regulations. 2022

IT is hereby notified that the Minister of Finance and Economic Development has, in terms of section 3 of the Finance Act [Chapter 23:04], made the following regulations:—

Title

  • 1. These regulations may be cited as the Finance (Amendment of Sections 22B, 22G and 39 of Finance Act) Regulations. 2022.

Substitution of section 228 of Cap. 23:04

  • 2. The Finance Act [Chapter 23:04] is amended by the repeal of section 22B and the substitution of—

“22B Automated financial transactions tax.

The automated financial transactions tax chargeable in terms of section 36B of the Taxes Act shall be calculated at the rate of—

  • (a) for each withdrawal of one thousand Zimbabwe dollars or above, five Zimbabwe cents;
  • (b) for each withdrawal below one thousand United States dollars, five United States cents;
  • (c) for each withdrawal of one thousand United States dollars or above, two per centum of the value of the withdrawal.”.

New section substituted for section 22G of Cap. 23:04

  • 3. With immediate effect, section 22G of the Finance Act [Chapter 23:04] is repealed and the following is substituted—

“22G Intermediated Money Transfer Tax

The intermediated money transfer tax chargeable in terms of section 36G of the Taxes Act shall be calculated at the rate of —

  • (a) zero comma zero two dollars on every Zimbabwe dollar or part thereof transacted for each transaction on which the tax is payable;
  • (b) zero comma zero four United States dollars or part thereof on every United States dollar transacted for each transaction on which the tax is payable:

Provided that if a single transaction on which the tax is payable is equivalent to or exceeds —

  • (a) sixty-six million Zimbabwe dollars, a flat intermediated money transfer tax of one million three hundred and twenty thousand Zimbabwean dollars shall be chargeable on such transaction; or
  • (b) five hundred thousand United States dollars. a flat intermediated money transfer tax of ten thousand one hundred and fifty United States dollars shall be chargeable on such transaction.”.

Amendment of section 39 of Cap. 23:04 4.

With immediate effect, section 39 (“Rates of capital gains tax withholding tax”) of the Finance Act [Chapter 23:04] is amended by the repeal of paragraph (c) and the substitution of—

  • “(c) in the case of a sale of a marketable security that is a listed security, one comma five per centum of the price at which the security was sold if such security was held for at least two hundred and seventy (270) days on the date of its sale, or four per centum of the price at which the security was sold if such security was held for less than two hundred and seventy (270) days on the date of its sale.”.

EXPLANATORY NOTE

(This note does not form part of the regulations, but explains its purpose) For the avoidance of doubt, all transfers of marketable securities as defined in the Capital Gains Tax are liable to capital gains tax, including transfers not liable to the withholding tax because they are not mediated through a depositary or agent. Where no depositaries or agents are involved, a corporate secretary or other person responsible for the share register should not register any transfer of shares until proof of payment of any capital gains tax due on the transfer is exhibited to him or her.

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20 Comments

Asalif 1 week ago

you are shying away from just saying the IMMT tax percentage has gone up from 2% how much is it now don't tell us about millions of dollars without the exact percentage period


Nimrod 1 week ago

Can someone who understand explain in laynan' s terms what the so called changes are.


Tateguru 1 week ago

I hope people will deposit in order to have something to withdraw


MapumhaNgozi 1 week ago

#registertovote
It's now time up, this thugs n hooligans must fall this time, what type of economy is this. We are now scared. How come is that a 2L of cooking oil is charged at US5 n above,a commodity being charged with ecocash price,bond price,US dollar price,rand price kusvika kupi,so toraramirepi nemhondi idzi. ****s my fall now we want new change, Munhu wese kunovhota


MapumhaNgozi 1 week ago

#registertovote
It's now time up, this thugs n hooligans must fall this time, what type of economy is this. We are now scared. How come is that a 2L of cooking oil is charged at US5 n above,a commodity being charged with ecocash price,bond price,US dollar price,rand price kusvika kupi,so toraramirepi nemhondi idzi. ****s my fall now we want new change, Munhu wese kunovhota


mujibha 1 week ago

koisu tisina mainstrument tichachaitwa seyi coz hatisa tapiwa maammendment bill numbers acho but takaenda kuhondo todawo matax edu akwidzwewo tiwanewo something.Tiri vana mujibha naana chimbwido.Purizi ndapota zvangu.Vamwe varikupiwa maAmmendments bill numbers of stationary isu mukungoramba kana cent chairo hatisati tapiwawo makangonyarara.0.02 yakawandisa tipeiwo yedu.


Chimbido 1 week ago

Ndizvozvo chaizvo todawo maadvance ema statutory acho.Tirivanhuwo

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Tkt 1 week ago

Isu vana Tkt totaura zvino itika. Just a few days ago in response to the measures announced i proposed a repeal or reduction of all taxes & levies, indeed this has happened Now kwasara imwe tax iri kurwadza vanhu in general VAT mmm ma1 12-20% haa maya hazvi bude ngaidzike iyo

#ED-Dira_Hako_Rizare, Wangu


Zimbabwean 1 week ago

Saka we are taxed at every level. Withdrawal of Zim dollar ehhh


MuPfungwe Chaiye 1 week ago

Whatever you said it will not work


Jonah chibadura 1 week ago

Can someone explain to us kut zvikunzii?


Mafirakureva 1 week ago

Kusona musuri hakupedze manyoka


Simboti 1 week ago

now i have no confidence in my country , everything policy is just bullshhit to the scrotum


Daudi 1 week ago

Isu ana D zvema statutory instrument nema amendment of section of the Chapter hatizvihwisisi isu.Mukumboti chii ko nhy?


The Mberengwean 1 week ago

You will keep on changing laws and regulations but you know where the problem is, corruption and loss of confidence in your government.


Bill Clinton 1 week ago

Patiently waiting for everything to change


Jah🇿🇼Tsvarie-07 1 week ago

Truth be told, Zimbabwe is run by people not in government, when government put laws they will be trying to read what's on the ground and the reason they have so much goal post.
Mthuli Ncube should be ahead then its auto...


The Terraces 1 week ago

The rate at which laws are changed in Zimbabwe has surely overtaken the rate at which babies are changed diapers.


Mafirakureva 1 week ago

Ukatendeuka, wakambotendeuka, waakutenderera

Dira rizare sahwira

Asalif 1 week ago

why not change everything



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