Fiscal incentives made available for investors

Country / jurisdiction: Zimbabwe · Year: 2022 · Status: In force · Level: National · Type: Voluntary

The Republic of Zimbabwe provides certain tax benefits to mining investments in the country. According to the Income Tax Act, the taxable income of a holder of a special mining lease (mines which investment is made mostly in foreign currency or intended principally for export) has an especial 15% rate. Another important benefit is that the Minister of Mines may exempt, by statutory instrument the holder of a special mining lease wholly or partly from any non-resident shareholder’s tax, non-resident tax on fees, non-resident tax on remittances or non-resident tax on royalties.

Also, expenditures related to mining operations incurred during the year of assessment on certain prospecting and exploratory works before and after acquiring rights to mine minerals, together with some others, are allowed deductions. They can be deducted in the year of assessment in which they are incurred; or carried forward and allowed against income from mining operations in any subsequent year of assessment.

Regarding Value Added Tax, the supply of mining goods used exclusively in mining can charged with a tax rate of 0% under certain conditions.  Furthermore, the Commissioner may authorize a deferment of payment on the tax of imported goods for the use of mining for up to 3 years, compared to the standard 180 day-period.

Official source: https://www.zimra.co.zw/16-tax/company/1756-fiscal-incentives