Coporate Tax Guide 2025 - Mukanya Financial Services

Important Notice: This guide summarizes key corporate tax provisions. Always refer to the full legislation and consult Mukanya Financial Services (we are tax practitioners) for specific advice.

1. Corporate Tax Rates

Sector	Tax Rate	Notes
Standard Corporate Tax	24%	Applies to most companies
Mining – Platinum	12%	Increased from 10% in 2024
Mining – Diamonds	17%	Increased from 15% in 2024
Mining – Gold	15%	Unchanged from 2024
Special Economic Zones (SEZs)	17.5%	Increased from 15% in 2024
Non-Profit Organizations	0%	With valid exemption certificate

2. Taxable Income Calculation

Formula:

Taxable Income = Gross Income – Allowable Deductions – Capital Allowances

Key Components:

Gross Income Includes:

Business profits (local and foreign-source)
Investment income
Capital gains (separately taxed at 20%)
Deemed income (benefits in kind)

Allowable Deductions:

Business expenses (wholly/incurred in production of income)
Bad debts (specific provisions only)
Repairs and maintenance
Research & Development (150% deduction for approved projects)

Non-Deductible Expenses:

Personal expenses
Fines and penalties
Entertainment expenses (limited to 1% of turnover)
Taxes paid (except PAYE and certain local taxes)

3. Capital Allowances

Asset Type	Allowance Rate	Notes
Industrial Buildings	5% straight-line	Per annum
Computers & Tech Equipment	25% reducing balance	Year of purchase and subsequent years
Manufacturing Equipment	15% reducing balance	New rate for 2025
Renewable Energy Equipment	50% first year + 25% thereafter	Special incentive
Commercial Vehicles	20% reducing balance	Max ZWG 5,000 per vehicle

4. Tax Compliance Requirements

Filing Deadlines:

Return Type	Form	Deadline
Provisional Tax (Quarterly)	ITF 12B	25th of March, June, September, December
Annual Tax Return	ITF 12C	30 April following tax year-end
Withholding Tax Returns	WT 1	25th of following month

Payment Requirements:

– Provisional tax payments must cover at least 90% of final liability
– Balance due with annual return
– Electronic payments mandatory for amounts > ZWG 1 million

Penalties for Late Filing/Payment:

10% of tax due (immediate)
2% monthly interest on outstanding amounts
Possible criminal prosecution for willful non-compliance

5. Special Tax Provisions

Group Taxation

– Available for 75%+ owned subsidiaries
– Must apply for group status with ZIMRA
– Losses can be offset across group companies
– Consolidated returns required

Transfer Pricing

– Arm’s length principle applies to related-party transactions
– Documentation required for transactions > USD 500,000
– Country-by-country reporting for multinationals
– Penalties up to 200% of tax avoided

Tax Incentives

Incentive	Qualification	Benefit
Export Incentive	60%+ revenue from exports	5% tax rate reduction
Industrial Park Development	Investment > USD 10 million	10-year tax holiday
Rural Enterprise Development	Operations in designated areas	50% deduction for capital expenditure

6. Record Keeping Requirements

Mandatory Records:

Financial statements (IFRS compliant)
Tax computations
Invoices and receipts
Bank statements
Asset registers
Board minutes on financial matters

Retention Period: 6 years from end of tax year
Electronic Records: Must be easily retrievable and printable
ZIMRA Access: Right to inspect records with 7 days notice

ZIMRA Corporate Tax Support

Corporate Tax Helpdesk: +263 242 758 845

Large Taxpayer Office: +263 242 758 800

Email: corporatetax@zimra.co.zw

eFiling Portal: https://efiling.zimra.co.zw

2025 CORPORATE TAX GUIDE

Zimbabwe Revenue Authority (ZIMRA)

1. Corporate Tax Rates

2. Taxable Income Calculation

Formula:

Key Components:

3. Capital Allowances

4. Tax Compliance Requirements

Filing Deadlines:

Payment Requirements:

5. Special Tax Provisions

Group Taxation

Transfer Pricing

Tax Incentives

6. Record Keeping Requirements

ZIMRA Corporate Tax Support