Marvelous Tapera 
THE hiring of equipment or intellectual property from non-resident persons is prevalent in developing countries such as Zimbabwe.
The leasing option is often preferred due to technological changes and lack of the capital outlay required to make an outright purchase. Also, owners of intellectual properties usually hold out their properties for hire while retaining ownership of the property. This hiring of property from a non-resident creates taxes in Zimbabwe and an obligation on the part of the resident payer of the royalty or rent to deduct and remit such taxes to the Zimbabwe Revenue Authority (Zimra)as fully explained below.
All rental type arrangements between residents and non-resident persons are within scope except for the stated exclusions.
Subscribe to The Financial Gazette
This is premium content. Subscribe to read article.
