Monday, 18 January 2010

Zimbabwe forgets to withdraw Capital Gains Witholding Tax

When the revised Zimbabwe Stock Exchange transaction charges were announced in the 2010 national budget proposals, there was a general inference that the Capital Gains Withholding Tax would be withdrawn. This was previously 1% of sale proceeds in the case of marketable securities. For some unexplained reason the legislation covering the applicability of Capital Gains Withholding Tax on marketable securities has in fact not been changed and accordingly, the tax must continue to be levied. It therefore costs 1.73% to enter the market and 2.48% to exit. That's a total cost in and out of 4.21%. Not exactly a level that will encourage a flood of money into the country.

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