By Derick Tsimba

Government continues to step up its efforts to incentivise Special Economic Zones (SEZs) through Fiscal Incentives aimed at accelerating participation by Investors.

The Ministry of Finance and Economic Development in its recent document on ‘Key Milestone and Progress on Policy Reforms,’ dated, October 2019, revealed Government had gazetted Fiscal Incentives for corporate tax; customs duty on capital equipment; special initial allowance; employee’s tax; non-residents withholding tax on fees, royalties and dividends; customs duty on raw materials and capital gains tax.

“Under the incentive area, Investors will get a zero-rated Corporate Income Tax for the first five years of operation with a corporate tax rate of 15% applying thereafter, duty free importation of Capital equipment, special initial allowance of 50% of cost from year one and 25% in the subsequent two years, employees tax exempted, exemption from non-residents tax on fees on services that are not locally available, royalties, dividends and zero rated capital gains tax.

“Inputs which include raw materials and intermediate products imported for use by companies set up in the SEZ’s to be imported duty free. The duty exemption will, however, not apply where such raw materials are produced in Zimbabwe,” said the Ministry of Finance.

The Harare Post has learnt that these gazetted incentives by Government are initiatives in support of the acceleration and implementation of SEZs. They are important investment programmes aimed at increasing exports, employment, transfer of technology and managerial skills.