Currently, the Zimbabwean tax system is based on source rather than residence. Income obtained or perceived to be sourced from Zimbabwean sources is taxed. During the current tax reform process, Zimbabwe has stated that it is contemplating shifting to a residence-based system.
The location where money originates or is generated, not the place where it is paid, is referred to as the source. If products are sold under a contract made in Zimbabwe, the source of revenue is considered to be in Zimbabwe, regardless of the location of delivery or transfer of ownership. The location where services are provided is referred to as the source of services.
Certain kinds of money earned outside of Zimbabwe may be considered to have been earned in Zimbabwe and taxed as such in the hands of a Zimbabwean tax resident. Interest, dividends, and some copyright royalties originating outside of Zimbabwe are examples.
WHT may apply to non-residents who do not have a place of business in Zimbabwe.
For a taxable income of up to ZWL 120,000, the tax rate is 0.
For a taxable income from ZWL 120,001 to ZWL 360,000, the tax rate is 20% for each ZWL above 120,000.
For a taxable income from ZWL 360,001 to ZWL 720,000, the taxable income is ZWL 48,000 + 25% for each ZWL above 360,000.
For a taxable income from ZWL 720,001 to ZWL 1,440,000, the taxable income is ZWL 138,000 + 30% for each ZWL above 720,000.
For a taxable income from ZWL 1,440,001 to ZWL 3,000,000, the tax rate is 354,000 + 35% for each ZWL above 1,440,000.
For a taxable income from ZWL 3,000,001 and above, the tax rate is 900,000 + 40% for each ZWL above 3,000,000.