Introduces domestic minimum top-up tax and expands taxation of minerals to promote local processing
01 Jan 2026
On 29 December 2025, the Government of Zimbabwe enacted the Finance Act, 2026. The Act, inter alia, introduces a domestic minimum top-up tax and increases taxation of strategic mining and extractive sectors, with effect from 1 January 2026.
Domestic minimum top-up tax (DMTT)
The Act introduces a domestic minimum top-up tax (DMTT) targeting high-earning multinational enterprises (MNEs). The measure applies to MNE groups with consolidated annual revenues of at least €750 million (approximately $810 million) in at least two of the four fiscal years preceding the current year.
Where income generated in Zimbabwe is subject to an effective tax rate below 15 per cent, owing, for example, to tax incentives, exemptions or lower statutory rates, the Government levies a top-up tax to bring taxation to the minimum level (Forty-First Schedule).
General levy and export taxation on minerals
The Act also increases the general levy on selected minerals and introduced a flat rate of 10 per cent value added tax (VAT) on exports of unbeneficiated lithium ore and concentrates. The tax base is calculated on the potential lithium sulphate content. By contrast, exports of lithium sulphate are zero-rated for VAT, signalling a policy preference for domestic value addition.
A similar 10 per cent VAT applies to exports of unbeneficiated chrome ore and concentrates, as well as unbeneficiated platinum and antimony (Sections 39–42).
All VAT and export taxes are payable in convertible foreign currency.
Nature of measure:
Type:
-
Treatment and operation (Other)
Industry:
-
Not industry specific
-
Primary (Mining and quarrying)
Inward FDI:
Yes
Outward FDI:
No
Sources:
