The pangs of the post COVID-19 crisis coupled with the recent Russia-Ukraine war has put unprecedented strains on the food supply worldwide. Zimbabwe has not been spared by the global economic woes which are further exacerbated by compounding effects of hyperinflation and onerous taxes that have left most taxpayers grappling to survive. One sector that is key to the decent survival of many is the agricultural sector. The sector contributes to securing people’s livelihood. In Zimbabwe largely inf ...
Transfer pricing rules- Zimbabwean perspective and beyond!!
Background Transfer pricing is not an exact science. It involves the pricing of goods or services outside normal commercial parameters so as to gain some tax advantages. Transfer pricing is anchored on the principle of the arm’s length. The arm’s length principle requires that compensation for any intercompany transaction should conform to the level that would have applied had the transaction taken place between unrelated parties, all other factors remaining the same. As the walls of the econo ...
IFRS 17, Accounting for Insurance Contracts- A look into the Tax effects
The International Accounting Standard Board recently issued IFRS 17 titled “Accounting for Insurance Contracts”, which establishes principles for the recognition, measurement, presentation and disclosures of insurance and reinsurance contracts issued and held by entities. The standard, like IFRS 4, focuses on types of contracts rather than types of entities and hence, generally applies to all entities that write insurance contracts. The adoption of IFRS 17, is a most significant change ...
Assessed losses: A technical cushion for taxpayers in Zimbabwe
The tax treatment of assessed losses in Zimbabwe is an important issue for businesses operating in the country. With highly volatile economic conditions, companies should understand the tax treatment of assessed losses. Losses are not bad for tax purposes but what’s key is for a business to stay afloat and eventually turn fortunes. The law recognises that loss represents an expenditure that can be used to reduce one’s future taxable income and consequently tax bill. Such loss is referred to as a ...