Zimbabwe | Finance Act, 2025

Zimbabwe | Finance Act, 2025

The President signed the Finance Act, 2025 into law on 29 December 2025, giving effect to the tax measures proposed in the 2026 National Budget. Most amendments took effect from 1 January 2026.

Below is a summary of the key changes that affect payroll.
1. The Finance Act, 2025  introduces preferential income tax rates aimed at attracting foreign skills and promoting Zimbabwe as a regional outsourcing hub.
  1. A flat income tax rate of 15% applies to qualifying expatriate employees working in declared International Financial Services Centres.
  2. This replaces the standard progressive PAYE tax bands for affected income.
  3. The rate applies to all taxable employment income earned from IFSC employment.
Eligibility conditions
  1. The individual holds a temporary employment permit.
  2. The individual is employed by an entity operating within a declared International Financial Services Centre, such as the Victoria Falls IFSC.
2.  Record keeping and returns
  1. Employers must submit PAYE returns in the format prescribed by the Commissioner for the relevant tax year.
  2. Required information includes:
    1. employee name and address;
    2. total remuneration paid or payable during the year;
    3. total employees’ tax withheld;
    4. any additional information requested by the Commissioner.
  3. Returns must be submitted monthly, or over a longer period if approved by the Commissioner.
  4. Where an employer ceases operations or stops employing staff, a final PAYE return must be submitted covering the period from 1 January to the cessation date.
  5. The final return must be filed within 14 days of cessation, unless an extension is granted.
  6. Employers must provide a copy of each employee’s tax certificate for the tax year.
Please see finance act attached.

    • Related Articles

    • Zimbabwe | Finance (No. 2) Act, 2024

      The Zimbabwe Finance (No. 2) Act, 2024 was officially gazetted on December 13, 2024. Key payroll-related updates include an increase in the local currency tax-free threshold, increasing it to ZWG 33,600 per annum and a revision of personal income tax ...

    • Zimbabwe – Promulgation of Finance Act 2023

      Following the promulgation of the Finance Act, 2023, the following are a summary of changes affecting payroll: the ZWL tax threshold has increased from ZWL 750 000.00 per month to ZWL 9 000 000.00 per month, and adjust the tax bands to end at ZWL270 ...

    • Zimbabwe | Finance Bill 2024

      The Zimbabwe Finance Bill, 2024, introduces the following key changes: Amendments to the Reserve Bank Act to recognize the new local currency, Zimbabwe Gold (ZWG), as legal tender, which was introduced on April 5, 2024, through the Presidential ...

    • Zimbabwe: Finance Act ZWL tax table changes

      Following the promulgation of the Finance (No. 2) Act, 2022, the ZWL tax threshold has increased from ZWL 900,000 to ZWL 1,1 million along with consequential amendments to the tax bands, with effect from 1 January 2023. No changes in USD tax ...

    • Zimbabwe: Finance Act, 2022 (No. 8 of 2022)

      Following the 2022 Mid-Term Budget and Economic Review & Supplementary Budget Speech, after much delay, the Finance Act, 2022 Act No. 8 of 2022 brings the following amendments into effect for the 2022 tax year: Update in the tax tables for ZWL (for ...