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Zimbabwe

We have a team of professionals to help you with all your business needs, so you can focus on expanding your business in Zimbabwe.

WHY Zimbabwe?

Zimbabwe, officially the Republic of Zimbabwe, is a landlocked country in Southeast Africa, between the Zambezi and Limpopo River, bordered by South Africa to the south, Botswana to the southwest, Zambia to the north, and Mozambique to the east. The capital and largest city is Harare, and the second largest is Bulawayo. Expanding from a population of 2,746,396 in 1950, Zimbabwe’s population has rapidly increased. Based on the 2022 revision of the World Population Prospects, the population of Zimbabwe was estimated by the United Nations at 15,993,524 in 2021.

A country of roughly 16.9 million people as per 2024 estimates, Zimbabwe’s largest ethnic group are the Shona, who make up 80% of the population, followed by the Northern Ndebele and other smaller minorities. Zimbabwe has 16 official languages, with English, Shona, and Ndebele the most common. Zimbabwe is a member of the United Nations, the Southern African Development Community, the African Union, and the Common Market for Eastern and Southern Africa.

The main foreign exports of Zimbabwe are minerals, gold, and agriculture. Zimbabwe is crossed by two trans-African automobile routes: the Cairo-Cape Town Highway and the Beira-Lobito Highway. Zimbabwe is the largest trading partner of South Africa on the continent. Taxes and tariffs are high for private enterprises, while state enterprises are strongly subsidised. State regulation is costly to companies; starting or closing a business is slow and expensive. Tourism also plays a key role in the economy.

ADVANTAGES

Skilled Workforce:

A relatively young and educated population provides a good labor pool, with high literacy rates.

Strategic Location & Market Access:

Positioned in Southern Africa, Zimbabwe offers access to large regional markets through SADC, COMESA, and AfCFTA, with vast combined populations and GDP.

Investor Reforms:

Government initiatives through ZIDA aim to streamline processes, offer incentives (like tax holidays for certain sectors), and improve the ease of doing business.

TAX REGIME

Direct Taxes

  • Corporate Income Tax (CIT): The general rate is 25% for companies, trusts, and individuals’ trade income. A 3% AIDS Levy is added to the tax liability, resulting in an effective rate of 25.75%.
  • Personal Income Tax (PAYE): Employment income is taxed on a progressive scale up to 40%, plus the 3% AIDS Levy. For 2026, the tax-free threshold is set at USD 100 per month for foreign currency earners.
  • Capital Gains Tax (CGT): Levied at 20% on the gain from disposing of specified assets (immovable property or marketable securities) acquired after February 2019. Assets acquired before this date are taxed at 5% of the gross sale proceeds.
  • Special Capital Gains Tax (SCGT): A 20% tax applies to the transfer of mining titles, which must be paid within 30 days of the transaction.

Indirect Taxes

  • Value Added Tax (VAT): The standard rate is 15% on the supply of most goods and services. Basic foodstuffs, medical services, and educational services are typically zero-rated or exempt.
  • Intermediated Money Transfer Tax (IMTT): Commonly known as the “2% tax,” this is levied on electronic financial transactions. In 2026, it features a tiered cap system to mitigate the burden on high-value business transactions.
  • Excise Duty: Levied on specific products like alcohol, tobacco, and fuel. Notably, as of January 2026, a higher 15.5% VAT rate and new digital services taxes may apply to certain sectors

Withholding Taxes (WHT)

WHT is a final tax on certain payments made to residents or non-residents:

  • Dividends: 10% for ZSE-listed companies and 15% for others.
  • Interest: 15% for residents; non-residents are generally exempt to encourage foreign investment.
  • Royalties: 15% on payments to non-residents.
  • Non-Resident Digital Services: 15% WHT on payments to foreign digital platforms (e.g., streaming and apps).

Fiji COMPANIES

Private Limited Company (Pvt Ltd):

Most common, offers limited liability, restricts share transfers, limits shareholders (max 50), and requires formal documentation like Articles of Association.

Private Business Corporation (PBC):

Simpler for SMEs, has a separate legal persona, perpetual succession, and uses member contributions instead of share capital, with no annual returns required.

Co-operative Company (Co-op):

Member-owned businesses focused on collective benefit, with continuous succession.

Public Limited Company (PLC):

Shares can be offered to the public and listed on the stock exchange, requiring more complex structures and reporting.

Foreign Company:

A company incorporated outside Zimbabwe that establishes a place of business within the country.

Company Limited by Guarantee:

Often used for non-profits, where members guarantee a certain amount if the company winds up.

Partnerships, Syndicates, & Joint Ventures:

Can be voluntarily registered under the COBE Act for collaborative projects.

 

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About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

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