2% transaction tax standardised across currencies

Zim Now Writer

The Ministry of Finance, Economic Development and Investment Promotion on Monday announced the standardisation of of the Intermittent Money Transfer Taxes to 2% for all currencies, overturning the Finance Act 13 of 2023 gazetted on December 30, 2023.

Under the IMMT introduced under SI 80 of 2024, section 36(2) of the Taxes Act, IMMT tax on electronic transfers will be 2% for both USD and ZiG transactions as well as the gold backed digital tokens," reads the SI Statement.

USD outbound foreign payments are now taxed at 2%.

Previously, rates were 2% for local currency and 1% for USD transfers with gold backed digital token transactions set at $0.0005

The Ministry announced a US$0.05 ZiG equivalent tax on every withdrawal of ZiG worth USD100. This means that a withdrawal of USD1000 will merit a USD50 cents surcharge.

A flat figure of US$10 150 will be levied on single transactions equivalent to or above US$500 000 and is applicable to comparative ZiG equivalents.