Mthuli Ncube amends sections of intermediary money transfer tax
By a correspondent of the Minister of Finance, Professor Mthuli Ncube has through Statutory Instrument 96 of 2022 amended Sections 22B, 22G and 39 of the Finance Act to reflect changes to transfer tax intermediary funds (known as the 2% tax), automated financial tax, transaction tax and capital gains tax withholding rates. We present the SI below:
[CAP. 23:04 Finance (Amendment of Sections 22B, 22G and 39 of Finance Act) Regulations. 2022
IT is hereby notified that the Minister of Finance and Economic Development has, in terms of section 3 of the Finance Act [Chapter 23:04]has made the following regulations:
- 1. These regulations may be cited as the Financial Regulations (amendment to Articles 22B, 22G and 39 of the Finance Act). 2022.
Replacement of Cape Town Section 228. 23:04
- 2. Finance law [Chapter 23:04] is amended by repealing Section 22B and replacing—
“22B Tax on automated financial transactions.
The tax on automated financial transactions payable under Section 36B of the Taxes Act is calculated at the rate of:
- (a) for each withdrawal of one thousand Zimbabwean dollars or more, five hundred Zimbabwean dollars;
- (b) for each withdrawal of less than one thousand United States dollars, five hundred United States dollars;
- (c) for each withdrawal of one thousand United States dollars or more, two percent of the value of the withdrawal.”.
New article substituted for article 22G of the Cap. 23:04
- 3. With immediate effect, article 22G of the finance law [Chapter 23:04] is repealed and replaced with the following—
“Tax on intermediated money transfers 22G
The intermediated funds transfer tax payable under Section 36G of the Taxes Act is calculated at the rate of –
- (a) zero point zero two dollars on each Zimbabwean dollar or part thereof transacted for each transaction on which tax is due;
- (b) zero point zero four United States dollars or part thereof on each United States dollar transacted for each transaction on which tax is due:
it being understood that if a single transaction on which the tax is due equals or exceeds —
- (a) sixty-six million Zimbabwean dollars, a fixed intermediated money transfer tax of one million three hundred and twenty thousand Zimbabwean dollars shall be payable on such transaction; or
- (b) five hundred thousand United States dollars. a fixed intermediated funds transfer tax of ten thousand one hundred and fifty United States dollars will be payable on this transaction. »
Amendment to Section 39 of Cap. 23:04 4.
With immediate effect, Article 39 (“Rate of withholding tax on capital gains tax”) of the Finance Law [Chapter 23:04] is amended by repealing subsection (c) and replacing—
- “(c) in the case of a sale of a marketable security that is a listed security, one point five per cent of the price at which the security was sold if such security has been held for at least two hundred and seventy ( 270) days from the date of its sale, or four percent of the price at which the security was sold if this security has been held for less than two hundred and seventy (270) days from the date of its sale.”.
(This note is not part of the regulations, but specifies its purpose) For the avoidance of doubt, all transfers of securities within the meaning of the Capital Gains Tax are liable to capital gains tax, including transfers not liable to withholding tax because they are not mediated by a custodian or an agent. Where no custodian or agent is involved, a company secretary or other person responsible for the share register should not record any transfer of shares until proof of payment of any capital gains tax due on the transfer was not presented to him.