Introduction Employers endeavor to remunerate their employees to motivate them to work harder by giving them employment benefits in addition to cash pay. The benefits may include occupation of company house, right of use company motor vehicle, cellphone, security services, fuel coupons, school fees, passage benefit, medical cover, holiday allowance, entertainment, clothing allowance among others. Unknown to some employers is that when they are VAT registered and grant fringe benefits to ...
A quick look at Zimbabwean employment tax rules
Introduction Globalization has made it easier for people to work and live in any country of their choice. It is therefore common for employers to send employees on short-term assignments or for training and development. Some employees, known as frontier workers cross the border every day to go and work in another country. Additionally, others may migrate to live and work permanently in a foreign land, thereby terminating their fiscal link with their country of residence. This is the cat ...
How safe is your information with the tax authorities
Introduction Taxpayers are compelled by the tax law to provide significant amounts of information to revenue authorities about their income, expenditures and business affairs. The information may be provided through tax returns, assessments or other correspondents or documents which a tax authority may request from time to time. On the other hand, the law gives the Commissioner General of the ZIMRA with unlimited powers to demand full information in respect of any person’s liability or any ma ...
Relocation assistance passage benefit
Background Some employers give their employees fringe benefits in addition to the normal pay as a way of motivating them. As postulated by Dorstein on page 568 “a benefit is something that has saved an employee from taking out of his pocket” and should be brought into gross income of an employee in accordance with the provisions set out in s8 (1) (f) of the Income Tax (Chapter 23:06). According to this section benefits or advantages include board, cash allowance, the enjoyment of corpore ...
Relocation assistance passage benefit
Background Some employers give their employees fringe benefits in addition to the normal pay as a way of motivating them. As postulated by Dorstein on page 568 “a benefit is something that has saved an employee from taking out of his pocket” and should be brought into gross income of an employee in accordance with the provisions set out in s8 (1) (f) of the Income Tax (Chapter 23:06). According to this section benefits or advantages include board, cash allowance, the enjoyment of corpore ...
Capital gains tax and savings option on sale of your home
Introduction People often sell their homes in order to upgrade, obtain cash to pay off debts or start a business, upon divorce in order to satisfy the terms of a property sharing order, when they migrate to another country, etc. Whatever the reason, there may be capital gains tax upon such a disposal or sale. Capital gains tax is chargeable and collected in terms of the Capital Gains Tax Act (Chapter 23:01) on sale or disposal of marketable securities, immovable properties and certain intangi ...
Capital gains tax and savings option on sale of your home
Introduction People often sell their homes in order to upgrade, obtain cash to pay off debts or start a business, upon divorce in order to satisfy the terms of a property sharing order, when they migrate to another country, etc. Whatever the reason, there may be capital gains tax upon such a disposal or sale. Capital gains tax is chargeable and collected in terms of the Capital Gains Tax Act (Chapter 23:01) on sale or disposal of marketable securities, immovable properties and certain intangi ...
Taxpayers losing money in unclaimed medical expenses
Background As an employee, the only tax issues that one usually takes into cogniscence are the taxes deducted on one’s payslip. A lot of people complain about how their income reduce drastically from gross to net but not knowing that they are forgoing tax credits that they can take advantage of in order to boost their net income. A tax credit is an amount of money that taxpayers can subtract from taxes owed to the government. The value of a tax credit depends on the nature of the credit. The Fin ...