Corporate residence

02/09/2025
  • Tax System
    • The Zimbabwean tax system is based on the source of income, not residency. This means that income derived from sources within Zimbabwe is subject to tax, regardless of the place of payment.
  • Future Changes
    • Zimbabwe is moving towards a residence-based taxation system, but details are yet to be announced.
  • Source of Income
    • Income is deemed to arise in Zimbabwe if the goods are sold pursuant to a contract entered into within Zimbabwe, irrespective of the place of delivery or transfer of title. Certain types of income arising outside Zimbabwe, such as interest and copyright royalties, may be taxed if they are deemed to be from Zimbabwe.
  • Tax Credits
    • Relief for foreign tax suffered may be allowed as a tax credit, up to the maximum of the Zimbabwean tax.
  • Permanent Establishment (PE)
    • If Zimbabwe has a double taxation agreement (DTA) with another country, a foreign entity will be taxable in Zimbabwe only if it operates through a PE, which generally includes an office or fixed place of business. Only the income attributable to the PE will be taxable in Zimbabwe.