adminspecified asset. Specified asset means immovable property (e.g. land and buildings) and any marketable security (e.g. debentures, shares, unit trusts, bonds and stock).
Who should withhold
the capital gains withholding tax?
A depositary is responsible for withholding and remission of the tax before the transfer of any amount he holds to the seller after the sale or transfer of a specified asset.
Depositary includes: Conveyancer, legal practitioner, estate agent, building societies, Sheriff or Master of the High Court, stockbroker or financial institution who holds the whole or part of the price paid or payable to the seller in respect of the specified asset.
When should the tax be remitted?
A depositary should pay the amount withheld to the Commissioner-General of Zimra no later than the third working day from the date when the payment was made or within such further time as the Commissioner-General of Zimra may for good cause allow.
Exemptions to capital gains withholding tax
No capital gains withholding taxes should be deducted in respect of the following:
l Receipts and accruals from sale of specified assets of exempt bodies such as local authorities, Zambezi River Authority, People’s Own Savings Bank, building societies, institutions and societies or associations organised and operated solely for social welfare and not operating for the private benefit of the members.
- Receipts or accruals on the realisation or distribution by the executor of a deceased estate of a specified asset forming part of such estate;
- Receipts or accruals on the sale of any marketable security being any bond or stock in respect of any loan to the State-owned companies; a local authority; a statutory corporation;
- Receipts or accruals on the sale, by a person carrying on life insurance business
- Receipts or accruals on the sale of any shares in the Zimbabwe Development Bank established
- Receipts or accruals on the sale by a petroleum operator, approved by the Minister of Energy and Power Development
When is a tax clearance
certificate issued?
A Capital Gains Tax clearance certificate can be issued by Zimra upon submission of documentary proof to confirm that Capital Gains Tax has been paid or the client qualifies for exemption status as detailed above.
Our valued clients are hereby informed that no fee is charged for the issuance of the Capital Gains Tax clearance certificates. You are therefore encouraged to report to the police or Zimra offices, any incidents of people purporting to be Zimra officers and charging money or any such fees for obtaining this document.
Reminder for PAYE Tax Payment
Our valued clients are hereby informed that the PAYE for February 2013 is due and payable on or before the 10th of March 2013.
Disclaimer: This article was compiled by the Zimbabwe Revenue Authority for information purposes only. Zimra shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.
To contact Zimra visit our website www. zimra.co.zw, follow us on Twitter @Zimra_11, Like us on Facebook: www.facebook.com/Zimra.11, send us an e-mail :[email protected], call us (Head Office): 04-758891/5; 790813; 790814; 781345; 751624.
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