The rebirth of the Zimbabwe dollar through Statutory Instrument 142 of 2019 has seen a renewed interest in the exchange controls rules. The enforcement of these rules had been relaxed due to the multicurrency system that had been in place since February 2009. This article seeks to highlight some of the key exchange control rules to be observed in Zimbabwe. Selling in foreign currency The use of foreign currency in domestic transactions was outlawed by SI142 except in specified cases or when ...
Changes to tax rules necessary to smoothen transition to the Zimbabwe dollar
On the 24th of June 2019 the government took a bold move of re-introducing the Zimbabwe dollar as the sole currency for domestic transactions, thereby technically banning the use of foreign currency in settling obligations within Zimbabwe, except for purposes of paying of duty and VAT upon importation of goods as well as paying airfares to airlines. This move is a culmination of a process which started in October 2018 when the government separated bank accounts for RTGS$ and Nostro FCA. In ...
About the abolition of foreign currency transitionary matters and the future of taxes
In my last week article, I mentioned that the paying taxes in foreign currency has been part of our law since the introduction of multi-currency in 2009 and that the ZIMRA as the administrator of the law is reaffirming this position. Now with the re-introduction of the Zimbabwean dollar through Statutory Instrument 142 and the abolition of the use of foreign currency in domestic transactions, it appears there is an end to this era. Before we quickly jump to this conclusion, we should put things ...