|Capital Gains Tax|
Capital Gains Tax
Capital Gains Tax is levied at the rate of 5% of the gross selling price for properties acquired prior to the dollarization and 20% of the gain for properties acquired after the dollarization.
The gain is the deemed profit which is arrived at after deducting the following charges from the gross selling price:-
a] Cost of acquisition of the property;
b] Cost of permanent improvements to the property;
c] selling expenses such as agent’s commission;
d] Inflation allowances on the cost of acquisition and cost of permanent improvements;
No allowance is given on property acquired prior to the dollarization of the Zimbabwe economy as the Commissioner General is of the view that the 5% charge is concessionary.
A seller who is above 55 years of age can be granted exemption from the payment of Capital Gains Tax on the sale of his or her Principal Private Residence. The Seller must however satisfy the Commissioner General that the property has been the seller’s sole or main residence for a period of four (4) years or more immediately prior to the date of disposal.
A Tax payer who sells his or her Principal Private Residence to acquire another Principal Private Residence can be granted exemption from the payment of Capital Gains Tax on the basis of a “Roll Over Relief”.
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