What is Capital Gains Tax?
Capital Gains Tax (CGT) is an amount levied on the capital gain arising from the disposal of a specified asset in terms of section 6 of the Capital Gains Tax Act [Chapter 23:01]. Specified assets mean immovable property (land and buildings) and any marketable security (debentures, shares, unit trusts, bonds and stocks). Valuations for purposes of determining the values of the assets will also be required by the taxing authority (ZIMRA), together with proof of payment for the property (if case of a sale).

Rates of Capital Gains Tax
The table below summarises the CGT rates as provided for in terms of the Finance Act (Chapter 23:04):

Specified AssetsTax Rate in ZWLTax Rate in USD
Specified Assets acquired before 22nd February 2019 and sold from 22nd February 2019.5% of gross capital amount5% of gross capital amount
Specified Assets acquired from 22nd February 2019 and sold from that date and after.20% for each dollar of the capital gain20% for each dollar of the capital gain

The taxation of Capital Gains is split into two transactions as shown above. In respect of the first class (before 22 February 2019) the Capital Gain is determined to be the gross value and in respect of the second class (after 22 February 2019) capital gain is determined in terms of the normal rules.

Who Pays Capital Gains Tax?
The Seller of a specified asset has the obligation to pay Capital Gains Tax when disposing of a property. However, the Seller may be exempted from paying Capital Gains Tax in certain specified instances. Some of the exemptions are set out below;

  1. Where the property is the primary residence and the seller is over the age 55.
  2. A sale by Executor out of a deceased estate.
  3. Transfers of any specified assets between spouses.
  4. Transfer of principal private residence between former spouses following a divorce order.

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