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Zimbabwe Corporate Tax Guide 2026 — CIT 24% Standard, 12% Mining

Zimbabwe's Corporate Income Tax (CIT) is 24% for standard companies, 12% for mining companies, and 15% for manufacturing and export businesses. The tax year is the calendar year. Branch profits of foreign companies are taxed at the same rates.

CIT applies to all companies resident in Zimbabwe and to non-resident companies with a permanent establishment in Zimbabwe. Zimbabwe taxes both resident and non-resident companies on income derived from Zimbabwean sources. The tax authority is the Zimbabwe Revenue Authority (ZIMRA). Companies must register for tax, file annual returns, and make quarterly advance payments.

Example: A manufacturing company in Harare earns ZWL 50M in net profit. CIT due: ZWL 7.5M (15% of ZWL 50M). If it is a standard services company, CIT would be ZWL 12M (24%).

CIT Rates by Sector

  • Standard rate: 24% on net taxable profit for most companies
  • Mining: 12% for mining companies (with additional royalty taxes)
  • Manufacturing / Export: 15% for manufacturing, export-oriented, and related businesses
  • Branch profits: Taxed at standard CIT rates on Zimbabwean-source income
  • Non-resident companies: Subject to CIT on Zimbabwean-source income via a permanent establishment or withholding

Taxable Income and Deductions

Taxable income is calculated as gross revenue minus allowable deductions. Key deductions include:

  • Operating expenses: Rent, salaries, utilities, supplies, and other business costs
  • Depreciation: Industrial buildings (5% per year), plant and machinery (25%-50%), vehicles (20%), computers (33.3%)
  • Interest expense: Deductible on loans used for business purposes (subject to thin capitalisation rules)
  • Employee costs: Salaries, bonuses, NSSA contributions, and other employment costs
  • Tax losses: Can be carried forward for up to 6 years. No carryback.
  • Capital allowances: Special allowances for manufacturing, mining, and export sectors

Tax Compliance

Companies must file annual CIT returns by date determined by financial year end (typically within 4 months of year-end). Advance payments are made quarterly based on estimated annual tax. VAT returns are filed monthly or quarterly. ZIMRA requires electronic filing through the ZIMRA online portal. Companies must maintain proper accounting records for at least 6 years.

FAQs

Can a foreign company register a subsidiary in Zimbabwe?

Yes. Foreign companies can register a subsidiary (private limited company) with the Companies and Deeds Registry or through the Zimbabwe Investment and Development Agency (ZIDA). No restrictions on foreign ownership in most sectors.

Is there a withholding tax on dividends paid by a Zimbabwean company?

Yes. Dividends paid by a Zimbabwean company are subject to withholding tax at 10-15% depending on the recipient. This is a final tax for resident individuals.

What is the mining tax regime?

Mining companies pay CIT at 12% plus a mineral royalty tax ranging from 2% to 10% depending on the mineral. Additional capital gains tax may apply on disposal of mining assets.

Disclaimer

This guide is for informational purposes only and does not constitute tax advice. Corporate tax planning requires professional advice. Consult a qualified Zimbabwean accountant for advice tailored to your business.

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