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Income Tax Act (Chapter 23:06) Thirteenth Schedule requires an employer to withhold and remit employees tax (PAYE) in accordance with the tax deduction tables as prescribed.
The current tax tables are published by ZIMRA annually or periodically as may be necessary and can be downloaded using the link https://www.zimra.co.zw/domestic-taxes/tax-tables
The tax tables make it easier for taxpayers to compute PAYE with examples indicated on each and every tax table. The following are important as guidelines to pick the specific rates and withhold the correct amounts of PAYE:
Currency
Tax period
Frequency
Taxable income
Currency
There are separate tax tables for USD and RTGS. The currency of remuneration determines the tax table to be used.
Tax period
The tables vary from year to year and it is important to pick the correct table for the applicable year of assessment. Furthermore, there may be several tax tables for a single year and it is also important to select the correct period.
For example, in 2020 there are tax tables for January to July and tax tables for August to December, again separately for RTGS and USD. This was caused by the fact that the year of assessment beginning on the 1st January 2020, in respect of the taxable income from employment consists of the following two periods:
The seven-month period beginning on the 1st January, 2020, and ending on the 31st July, 2020;
The five-month period beginning on the 1st August, 2020, and ending on the 31st December, 2020.
Frequency
The tax tables have daily, weekly, fortnightly, monthly and annual categories.
The specific category to be used depends on the frequency of remuneration.
Taxable income
The specific bracket to be used under the selected category depends on the employee`s taxable income.
It is thus important to accurately compute the taxable income from employment as guided by the relevant legislative provisions. Once the aforementioned indicators are applied correctly, one can go ahead to follow the examples shown on the right side of each tax table. For illustration purposes, two examples are shown below.
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Disclaimer: This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.
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