Taxation of fringe benefits

Taxation of fringe benefits

Tax
• Fringe benefits means any amount of income which is paid or payable to any person whether in cash or otherwise in respect of services rendered. These are perks that employers give to their employees over and above any financial compensation. • These are advantages or benefits which are given to employees as incentives to retain their services. • Advantage or benefit includes board, occupation of quarters or residence, or the use of furniture or motor vehicle. It also includes the use of or enjoyment of any other property whatsoever, tangible or intangible, including a loan, an allowance, passage benefit and any other advantage or benefit whatsoever in lieu of or in the nature of remuneration as stated above. • Employee includes a director or a person otherwise gainfully employed.Valuation…
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Temporary importation of commercial vehicles

Temporary importation of commercial vehicles

Tax
COMMERCIAL vehicle, means any vehicle used for trading or used for commercial purposes, for example, taxis, commuter omnibuses, hired vehicles, towing vehicles equipped with lifting and towing equipment, buses, haulage trucks, funeral parlour vehicles among other vehicles. Commercial vehicles also include those used in the operation of transport services in transit through Zimbabwe. Such vehicles are cleared under Commercial Temporary Import Permit (CTIP). Triptyques or carnets may also be used in the place of a CTIP. Foreign commercial vehicles shall not remain in Zimbabwe for an unbroken period of more than: “Three (3) working days Five (5) days for abnormal loads) if in transit through Zimbabwe in terms of the Customs and Excise (General) Regulations (SI 154 of 2001) Section 60(5)(e) “14 days if coming to offload and/or load goods…
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Economists Say New $50 Note Won’t Trigger Inflation But …

Economists Say New $50 Note Won’t Trigger Inflation But …

Tax
TOP economists are confident that the new $50 notes, introduced by the Reserve Bank of Zimbabwe Tuesday, will not trigger inflationary pressures. However, former Finance Minister Tendai Biti differed with the economists saying the introduction of the new $50 note was criminal and would fuel inflation. The new note went into circulation Wednesday morning as the central bank unveiled plans to inject $360 million through the normal banking channels to make the cash accessible to the public. However, speaking to NewZimbabwe.com Business in separate interviews Tuesday, economic experts hailed the introduction of the new $50 note, and downplayed fears that it will create inflationary pressures. Prosper Chitambara described the development as “timely and positive” saying it would ease transactions. “It is a positive step which will bring convenience in conducting…
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Ecobank account-holders worry as the bank says it will be backdating collection of 2% tax

Ecobank account-holders worry as the bank says it will be backdating collection of 2% tax

Tax
It has been almost three years since Finance Minister Mthuli Ncube introduced his much-hated 2% tax. It’s still not clear why the tax was introduced, so many reasons have been given, but it is now an accepted fact of our lives. Sometimes something outrageous concerning the tax happens however and people are forced to question the whole IMTT tax thing again. This past week such an incident involved Ecobank, account-holders received a shocking SMS from the bank concerning the 2% Tax: Dear customer, be advised that Ecobank will be backdating collection of the 2% tax on all applicable Forex and ZWL $ local card transactions made between August 2020 and March 2021. Should you require further clarity, call or whats app [sic] 07711397171 or contact your Relationshp Manager. Stay Safe…
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Zimbabwe: ‘Forex Auction System Working Magic’ – Gvt

Zimbabwe: ‘Forex Auction System Working Magic’ – Gvt

Tax
THE Ministry of Industry and Commerce says the Reserve Bank of Zimbabwe's (RBZ) foreign exchange auction system is working magic and as seen by the surge in locally manufactured products as well as an increase in industry capacity utilisation. Speaking to NewZimbabwe.com Business, Industry Ministry's secretary Mavis Sibanda said the auction had prompted local manufacturers to boost production. "The foreign currency auction platform has positively benefited local manufacture of goods - with local retailers now stocking close to 65% of local products. It is largely expected this stability will be sustained as inflation is anticipated to go downwards," she said. Sibanda said statistics gathered from the Confederation of Zimbabwe Industries (CZI) indicate that in the second quarter of 2021, the national industrial growth rate reached 56% as a direct result…
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SI 127 ghost still haunting economy

SI 127 ghost still haunting economy

Tax
After passing Statutory Instrument (SI) 127 of 2021 on the 26th of May 2021, the Zimbabwean government made a quick summersault on the new regulations through a press statement issued by the Reserve Bank of Zimbabwe (RBZ) on the 15th of June 2021. Key provisions contained in SI 127 include measures that prohibit businesses from selling goods and services or quoting them at an exchange rate above the ruling auction market rate, issuing buyers with a Zimbabwean Dollar receipt for payment received in foreign currency, giving buyers a discount for paying in foreign currency and setting out penalties for businesses that refuse to accept payment in the Zimbabwean Dollar at the ruling auction market rate. The central bank press statement (though vague in terms of addressing the above provisions of…
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