A voluntary disclosure programme (VDP) is a mechanism frequently used by governments to encourage individuals and businesses to come forward and reveal their income and assets without fear of being penalised, imprisoned, or otherwise punished. It may be used to mitigate the negative consequences of "moral hazard" and "adverse selection." It increases the confidence of external investors in management by lowering the agency's costs. This article focuses on the most recent voluntary disclosure pro ...

An employee is a person who performs services for an entity under the direction and control of that entity for remuneration. In terms of the law every employer should withhold employees’ tax from all remuneration paid or payable to an employee who renders services in Zimbabwe during a tax year even if the employee is not a resident of Zimbabwe. Zimbabwe uses a system called final deduction system (FDS) for taxation of individuals in employment. The final deduction system implies that an employer ...

An employee is a person who performs services for an entity under the direction and control of that entity for remuneration. Employees are levied tax in terms of the13th Schedule to the Income Tax Act (ITA). Employee’s tax on remuneration should be deducted by an employer. Every employer should withhold employees’ tax from all remuneration paid or payable to an employee who renders services in Zimbabwe during a tax year even if the employee is not a resident of Zimbabwe. Zimbabwe uses a system c ...

Tax professionals have long been a crucial aspect of every country fiscal regulation and compliance. The role of tax professionals cannot be undermined, they are an important cog in the tax ecosystem. For the proper functioning of a tax system taxpayers need to be advised and because of the complexity and intricacies of the tax law it is certainly difficult for taxpayers to discharge tax obligations on their own. Besides this, the tax offices open doors to taxpayers who are illiterate, low-incom ...

Operating in a multicurrency environment is a hectic experience, fiscal and monetary policy measures keep getting revised and improved in a bid to stabilize the economy. The need for the policy maker to keep engaging with its citizens is also exasperated when the economy is charactersised by hyperinflation. During the preceding two months, we have seen the government working tirelessly putting in place measures to stabilize the economy. Key to the measures was the promotion of use of local curre ...

Zimbabwe has gone through different phases of transition in terms of monetary and fiscal policies.  The present multi-currency system that prevails at the moment has its origins dating back to 2009.With time we saw SI 142 of 2019 which detected that the USD was pegged at 1:1 with the ZWL coming into play and a lot of people in the labour market were found on the wrong side of the law, some due to failure to interpret the law accordingly and others ignorance. The payment of renumeration in United ...

Contracts are an important aspect of taxation because they help guarantee that all parties involved in a transaction understand the terms and circumstances. Contracts can be used to outline both parties’ rights and obligations, establish payment arrangements, describe tax liabilities, stipulate how disputes will be settled if necessary. A contract in place before any transaction between two or more parties reduces uncertainty about expectations from each side while also provides legal protection ...

In order to foster economic recovery and development there is need to have serious players and embrace innovation. Without ignoring the fact that not every innovation is beneficial to the growth of the economy,  there is need to embrace it with caution. An outright technophobia is however an impediment to growth. With the prevailing liquidity crisis, some traders have resorted to virtual currencies to facilitate payments. This piece of writing is targeted at unfolding the mystic persona of crypt ...

With effect from January 1, 2016, the government adopted transfer pricing legislation. A variety of provisions addressing transactions between associates were included in the transfer pricing legislation. The main stipulation of transfer pricing laws and regulations is that between associates or related parties must be fair and represent the same conditions as would if transactions were done by unrelated parties.  According to the arm’s length concept, parties should charge each other the same p ...

In the past the computation and declaration of PAYE was not an issue because the bond notes and the United States dollars were treated on a 1:1 basis and it also did not matter the currency of tax payment to the ZIMRA. In the advent of the promulgation of regulations governing monetary issues namely statutory instruments 32 and 33 of 2019, it has become difficult dealing with payroll issues especially in cases where earnings are both in RTGS dollars (RTGS$) and in foreign currency. An issue for ...