Two percent tax reprieve for importers

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THE government has exempted payments for the importation of goods and services from the two percent Intermediated Money Transfer Tax (IMTT).
The exemption also covers transfer of funds involved in the Reserve Bank of Zimbabwe’s (RBZ) foreign currency auctions, and payments.
This follows the promulgation in October, of a statute that extended the IMTT to cover foreign currency transactions, with effect from August 01, 2020.

“The ministry of Finance and Economic Development wishes to inform the transacting public and taxpayers that the following additional transactions are exempt from IMTT: the transfer of foreign currency awarded to any bidder on the Foreign Currency Auction System operated by the RBZ to the foreign currency account of any authorised dealer… the transfer of Zimbabwe dollars by an authorised dealer to the RBZ in settlement of foreign currency awarded to any bidder on the Foreign Currency Auction System operated by the RBZ,” Treasury said in a statement.