Incentives for investment in Special Economic Zones
01 Jan 2017
In his 2017 national budget statement, presented to the Parliament on 8 December 2016, the Finance Minister stated that Zimbabwe will provide various kinds of tax incentives to investors including, inter alia, (i) exemption from corporate income tax for the first 5 years of operation, and a rate of 15 per cent, afterwards; (ii) special initial allowance on capital equipment to be allowed at the rate of 50 per cent of cost from year one, and 25 per cent in the subsequent two years; (iii) a flat rate of 15 per cent tax on specialized expatriate staff; (iv) exemption from Non-residents tax on royalties and dividends; (v) duty free import of capital equipment for Special Economic Zones; and (vi) duty free import of inputs including raw materials and intermediate products (materials and products not produced locally) for use by companies set up in the Special Economic Zones. The tax incentives will apply in demarcated geographical areas and are restricted to production for export. It takes effect on 1 January 2017.
Nature of measure:
Type:
-
Promotion and facilitation (Investment incentives)
Industry:
Inward FDI:
No
Outward FDI:
No
Sources:
