Zimbabwe ups Tax-free threshold

Slight relief for Zimbabwean workers, as Finance and Economic Development Minister Prof Mthuli Ncube has announced an increase to the tax-free threshold from this August 2022.

The pronouncement are part of the Supplementary Budget statement made to Parliament on Thursday.

The current setup has it at ZWL300,000 per year and now pushes it to ZWL600,000 per annum.

The exact words,”Threshold on local currency remuneration from ZW$300,000 to ZW$600,000 per annum and also adjust the tax bands to end at ZW$12 million from the current ZW$6,000,000 per annum, above which tax is levied at a rate of 40 percent, with effect from 1 August 2022.”

This comes as inflation and the Zimbabwe dollar erosion runs amok.

Interestingly, tax-free bonus will be 500,000 from 1 November 2022.

The actual words, “I also propose to review the local currency tax-free bonus threshold from ZW$100,000 to ZW$500,000 with effect from 1 November 2022.”

That should make for interesting conversations around the projection.