ZIMBABWE 2017 BUDGET SPEECH
Zimbabwe’s Minister of Finance, the honourable Patrick Chinamasa, presented the 2017 National Budget in December 2016.
Highlights of the budget speech summarized:
- GDP growth is projected at 1.7%, from 0.6% estimated in 2016.
- Budget deficit is projected at 2.7% of GDP in 2017.
- Introduction of tax incentives for companies operating in Special Economic Zones.
- Exemption of 15% withholding non-resident tax on fees, in respect of fees already subjected to 20% withholding taxes as non-executive director’s fees.
The following remains the same:
- The tax-free band remains at US$3 600 per annum or US$300 per month.
- The upper-income tax bands remain at US$240 000 per annum or US$20 000 per month.
- The maximum tax-free bonus remains at US$1 000.
- The tax-free exchange in respect of a severance package will be the higher of US$10 000 or 1/3 of the severance package, up to a maximum of 1/3 of an amount of US$60 000.
- Pension income paid from a Pension Fund or Consolidated Revenue Fund to elderly taxpayers who are 55 years old or more, is exempt from tax.
- Fringe Benefits are taxed in the hands of the employee based on the cost to the employer.
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