Corporate Income Taxes

11/12/2025
  • Corporate Income Tax Rate: Effective from 1 January 2024, the corporate income tax (CIT) rate for companies in Zimbabwe is 25.75%, which includes a base rate of 25% and an additional 3% AIDS levy.
  • Tax System: Zimbabwe operates on a source-based tax system, meaning income from sources within Zimbabwe is subject to tax unless exempted. This also applies to income earned by foreign companies from sources within Zimbabwe.
  • Local Registration: Foreign companies with a place of business or trading activities in Zimbabwe must register a branch. A local subsidiary company can be registered as an alternative. Non-residents without a business presence may be subject to withholding tax (WHT).
  • Local Income Taxes: There are no provincial or local income taxes payable in Zimbabwe.
  • Tax Relief for Business and Knowledge Process Outsourcing (BKPO):
    •  Suspension of customs duty on specified equipment for BKPO operators.
    • Flat 15% Corporate Income Tax rate for qualifying BKPO operators.
    • Capital allowance deduction of 100% in the first year of use.
    • Exemption from Non-Residents Tax on Dividends.
    • Tax credit of US$1,500 per employee per annum under the Youth Employment Tax Incentive (YETI) framework.
    • Flat tax rate of 15% for skilled essential expatriate staff.