Zimbabwe Fin. Ministry says corporation tax payments to be made in Zim dollar

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HARARE – The Ministry of Finance and Economic Development in Zimbabwe has announced a new measure to promote the use of the local currency, the Zimbabwean dollar.

According to a statement seen by The Zimbabwe Mail, by the ministry, corporate tax payments will now be required to be made in the local currency.

The government believes that recent policy measures aimed at stabilizing the economy have led to improved stability in the exchange rate and pricing of goods and services.

For the June 2023 Quarterly Payment Date, taxpayers will need to settle 50% of the foreign currency portion of their corporate tax obligations in the local currency. However, if the law specifies that tax liabilities must be paid in the local currency, taxpayers are obligated to settle the entire tax obligation in the local currency.

The government will not accept any payments in foreign currency for the portion of corporate income tax due in local currency.

Taxpayers who do not have sufficient Zimbabwean dollars to meet their local currency tax obligations are advised to approach the Reserve Bank of Zimbabwe through their banks to facilitate the disposal of their US dollar holdings and access the required Zimbabwean dollars.

Engaging in parallel market transactions for tax payments is strongly discouraged, and corporates may face sanctions from the Financial Intelligence Unit if they do so. Late payment penalties for taxes will continue to be applied.

The government emphasizes its commitment to continuing currency reforms to achieve lasting price stability. These measures are part of the government’s broader efforts to stabilize the macroeconomy and address the depreciation of the Zimbabwean dollar.