GROW YOUR BUSINESS IN ZIMBABWE
Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost
Full Payroll Outsourcing
Hybrid Payroll Outsource
International Payment Management
Social Security Filing
Interact with Local Authorities
Human Resources Management System
Integration with all Accounting and Third Party
Praxima Services Include
Local Tax Compliance
Secure Data Transferring
Running Your Payroll
Focus on Your
Outsource your Zimbabwean payroll to Praxima
Currently, the Zimbabwean tax system is based on source rather than residency. Income derived or deemed to be derived from Zimbabwean sources is taxed. During the current tax reform process, Zimbabwe has indicated that it is considering moving to a residence-based system. The place where income originates or is earned, not the place of payment, is referred to as the source. If goods are sold under a contract made in Zimbabwe, the source of income is deemed to be in Zimbabwe, regardless of the place of delivery or transfer of title. The location where services are rendered is the source of services.
TAX RATES | 2022
Tax Rates: ZWL:
0% 0 - 300,000
0 + 20% for each ZWL above 300,000 300,001 - 720,000
84,000 + 25% for each ZWL above 720,000 720,001 - 1,440,000
264,000 + 30% for each ZWL above 1,440,000 1,440,001 - 2,880,000
696,000 + 35% for each ZWL above 2,880,000 2,880,001 - 6,000,000
1,788,000 + 40% for each ZWL above 6,000,000 6,000,001 +
STATUTORY FILING | 2022
Zimbabwe has a system of 'Final Deduction of PAYE' by employers, and most individual taxpayers are not required to file tax returns, except in certain circumstances (such as where there are other sources of income or an employee changes employment during the course of the year of assessment). The employer withholds PAYE tax from an employee's salary, which must be remitted to the revenue authorities by the tenth day of the month following the payroll deductions.
SOCIAL SECURITY | 2022
Zimbabwe's social security system is inadequate. All resident employees are required to participate in the National Social Security Scheme (NSSS).
Employers and employees both contribute to NSSS at the same rate of 4.5% of basic salary. With effect from June 12, 2021, the maximum amount of monthly insurable earnings has been reduced from ZWL 5,000 to 75% of the previous month's Total Consumption Poverty Line (TCPL) for an average of five people per household.
Residence, domicile, and citizenship are not normally relevant, and unless a tax treaty applies, there are no special concessions for non-residents.
Taxable income includes income received from employment, business or profession, certain investment income, capital gains and more. Income received from an employment can consist of either wages, salary, bonuses, commissions and allowances.
Other income (such as business profits and rents) is taxed at the corporate rate (currently 24%). Together with the AIDS levy, this results in an overall effective rate of 24.72%. A 3% AIDS levy (of tax liability) must be added to the total tax liability calculated. With the AIDS levy included, the top effective rate for employment income fell from 46.35% to 41.20%, while the top effective rate for other income fell from 24.72% to 24.72%.
Pensions received from pension funds or the Consolidated Revenue Fund are tax-free.
Dividends paid by Zimbabwe-incorporated companies are tax-free.
Your HRMS is Standard
PAYMENTS, REPORTING & FILING
Direct payment into employee bank accounts. Emailed password protected pay slips.
Payment of taxes, benefit providers and other creditors.
Filing of returns to the authorities.
Generation and filing of statutory reports.
General ledger and 100's of customisable reports.