Zimbabwe Mid Year Finance Bill Update August 2023

Zimbabwe Mid Year Finance Bill Update

As per the Public Notice No. 51/2023, issued on 10 August 2023, the Zimbabwe Revenue Authority (ZIMRA) wishes to advise its valued taxpayers that the Minister of Finance and Economic Development has reviewed local currency employment tax bands and tax rates with effect from 01 August 2023 in a bid to provide relief to taxpayers.
No changes were made to the USD Tax tables.

Click here to access the 2023 August to December ZWL Tax Tables.

Tax Table Update

The new thresholds and rates, as set out below, are applicable from 1 August to 31 December 2023.

Annual Tax Tables in ZWD:

Impact of the Zimbabwe Mid Year Finance Bill Update on PaySpace

• This change is effective for the period 1 August 2023 to 31 December 2023.
• Zimbabwe payrolls were NOT automatically recalculated. Customers must decide on a discretionary course of action based on the scenarios below.
• If no recalculation measures are taken for the period of August, the employee would need to file a tax return in order to rectify his taxes.
• Please note that as from recalculation or new run creation after release, the non-cumulative tax method will automatically be applied to all local payrolls to circumvent two tax tables in one tax year.

To apply the new rates in August 2023
• Scenario 1: If the August run is still open and employees have not been paid, customers need to recalculate to apply the new tax rates and non-cumulative tax method. No manual adjustments will be necessary.
• Scenario 2: If the August run is closed, customers can create a post-August interim run called ZimbabweMY StatutoryUpdate which will not be charged. Tax codes PAYE and AIDSLEVY will recalculate on the interim payslip and the non-cumulative tax method will be applied. No manual tax adjustments will be necessary. If applicable, adjust the ZMDL components (this depends on the income base which can be overridden at company level).

Should you have any questions regarding the Zimbabwe Mid Year Finance Bill Update, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected]

The PaySpace Team