Intelligence

Value added tax (VAT) is a transaction tax or rather an indirect tax on consumption, charged on the supply of taxable goods and services. Vat is levied on every taxable supply by a registered person.

Whereas customs duty is levied on imports into the country, excise duty attaches to goods manufactured within the country on specified items.

This tax was enacted in terms of section 80 of the Income Tax Act [ chapter 23:06] and its basic purpose is to ensure payment of tax by all business persons.

The government has been very progressive as far as setting up physical and intellectual structures as far as the issue of agriculture is concerned.

This document outlines the Capital Gains Tax implications of transfer of properties in Zimbabwe with emphasis on exemption available between related parties.

Transactions between related parties bear an inherent risk of manipulating the transaction to minimize tax liabilities, hence the need for transfer pricing rules.