Acts 54/1981, 30/1982, 32/1983, 7/1984, 24/1984, 19/1985, 4/1988, 16/1988,
22/1989, 10/1990, 19/1990, 21/1991, 17/1992, 12/1993, 19/1994, 13/1996, 29/1998,
21/1999, 22/1999, 18/2000, 22/2001, 27/2001, 15/2002, 10/2003.
SIs: 222E/1999.
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1. Short title.
2. Interpretation.
PART II
ADMINISTRATION
3. Delegation of functions of Commissioner .
4. . . . . . .
[Repealed by the Revenue Authority Act]
5. . . . . . .
[Repealed by the Finance Act 27/2001.]
PART III
CAPITAL GAINS TAX
6. Charging of capital gains tax.
7. Calculation of capital gains tax.
8. Interpretation of terms relating to capital gains tax.
9. When capital amount deemed to have accrued.
10. Exemptions from capital gains tax.
11. Deductions allowed in determination of capital gain.
12. Circumstances in which no deductions may be made.
13. Damage to or destruction of specified asset.
14. Determination of fair market price of specified assets.
15. Transfers of specified assets between companies under the same
control.
16. Transfers of specified assets between spouses.
17. Transfer of business property by individual to company under his
control.
18. Provisions for sales of immovable property under suspensive
conditions.
19. Provisions relating to credit sales where ownership passes.
20. Provisions for the reductions in costs of specified assets.
21. Provision for sales of principal private residences.
22. Substitution of business property.
PART IIIA
CAPITAL GAINS WITHHOLDING TAX
22A. Interpretation in Part IIIA
22B. Capital gains withholding tax
22C. Depositaries to withhold tax
22D. Agents to withhold tax not withheld by depositaries
TITLE 23 22E. Payee to pay tax not withheld by depositary or agent
22F. Exemptions
22FA. Registration of depositaries
22G. Depositaries to furnish returns.
22H. Penalty for non-payment of tax
22I. Refund of overpayments
22J. Credit where tax has been withheld
22K. Application of Part IIIA to sales concluded before 1.1.1999.
22L. Suspension of provisions of Part II A to marketable securities.
PART IV
RETURNS AND ASSESSMENTS
23. Application of provisions of Taxes Act relating to returns and
assessments.
PART V
REPRESENTATIVE TAXPAYERS
24. Application of provisions of Taxes Act relating to representative
taxpayer.
PART VI
OBJECTIONS AND APPEALS
25. Objections and appeals.
PART VII
PAYMENT AND RECOVERY OF TAX
26. Day and place for payment of tax.
PART VIII
GENERAL
27. Application of provisions of Taxes Act relating to offences, evidence,
forms and regulations.
28. Application of provisions of Taxes Act relating to relief from double
taxation.
29. Application of provisions of Taxes Act relating to tax avoidance.
30. Transitional provision re capital gains and losses of married women.
30A. Capital gains tax not withheld in terms of Part IIIA to be paid before
transfer of specified asset.
31. Returns by Registrar of Deeds , financial institutions and other
persons.
ACT
AN ACT to provide for the raising of a tax on capital gains, and to make provision
for matters ancillary or incidental thereto.
[DATE OF COMMENCEMENT: 1ST AUGUST, 1981.]
PART I
PRELIMINARY
1 Short title
This Act may be cited as the Capital Gains Tax Act [Chapter 23:01].
2 Interpretation
(1) In this Act-
"assessed capital loss" means the amount by which the sum of the deductions to be
made under subsections (2) and (3) of section eleven from the capital amount (as
defined in Part III) of any taxpayer exceeds such capital amount:
Provided that where the total amount of the assessed capital loss of a person in
respect of sales in any year of assessment is one thousand dollars or less the assessed
capital loss arising from such sales shall be reduced by such amount; "deed of sale" means an agreement in respect of a specified asset the effect of which
is that ownership of the specified asset shall pass to a person upon or after payment
by him of the whole or a certain portion of the amount payable under the agreement;
"marketable security" means-
(a) any bond capable of being sold in a share market or exchange; or
(b) any-
(i) debenture, share or stock; or
(ii) right possessed by reason of a person's participation in any unit trust;
whether or not capable of being sold in a share market or exchange;
"share" includes a member's interest in a private business corporation;
"specified asset" means-
(a) immovable property; or
(b) any marketable security;
"tax" means tax leviable in terms of this Act;
"Taxes Act" means the Income Tax Act [Chapter 23:06].
(2) For the purposes of this Act-
(a) an expression to which a meaning is assigned in subsection (1) of
section 2 of the Taxes Act in relation to the gross income, income or taxable income
of a person or the making of any assessment or the furnishing of any return shall,
unless the expression is otherwise defined in this Act, have the same meaning in this
Act in relation to the gross capital amount, capital amount or capital gain,
respectively, of a person or to the making of any assessment or the furnishing of any
return under this Act;
(b) an expression to which a meaning is otherwise assigned in subsection
(1) of section 2 of the Taxes Act shall, unless the expression is otherwise defined in
this Act, have the same meaning in this Act.
(3) For the purposes of this Act-
(a) a company shall be deemed to be under the control of an individual if
the majority of voting rights attaching to all classes of shares in the company is
controlled, directly or indirectly, by the individual;
(b) an individual and his nominee shall be deemed to be one individual.
PART II
ADMINISTRATION
3 Delegation of functions by Commissioner
Section 3 of the Taxes Act relating to the delegation of functions shall apply, mutatis
mutandis, in relation to this Act for the purposes of providing for and giving effect to
the matters concerned in relation to this Act.
[Sections 3 and 4 repealed and a new s 3 substituted by the Revenue Authority Act
[Chapter 23:11] with effect from the 19th January, 2001.]
4 . . . . . .
5 . . . . . .
[Section 5 repealed by Section 21 of the Finance Act No.27 of 2001 with effect from
the year of assessment beginning on the 1st January, 2002.]
PART III
CAPITAL GAINS TAX
6 Charging of capital gains tax
There shall be charged, levied and collected throughout Zimbabwe for the benefit of
the Consolidated Revenue Fund a capital gains tax in respect of the capital gains, as
defined in this Part, received by or accrued to or in favour of any person during any
year of assessment, other than a capital gain so received or accrued prior to the 1st
August, 1981. 7 Calculation of capital gains tax
Subject to section twenty-one, the capital gains tax with which a person is chargeable
shall be calculated in accordance with the Finance Act [Chapter 23:04] by reference
to-
(a) the capital gains of the person in the year of assessment; and
(b) the rate of capital gains tax fixed from time to time in that Act.
8 Interpretation of terms relating to capital gains tax
(1) For the purpose of this Part-
(a) "gross capital amount" means the total amount received by or accrued
to or in favour of a person or deemed to have been received by or to have accrued to
or in favour of a person in any year of assessment from a source within Zimbabwe
from the sale on or after the 1st August, 1981, of specified assets excluding any
amount so received or accrued which is proved by the taxpayer to constitute "gross
income" as defined in subsection (1) of section 8 of the Taxes Act and includes any
amount allowed to be deducted in terms of subsection (2) of section eleven which has
been recovered or recouped:
Provided that in the case of bodies referred to in subparagraphs (a), (c)
and ( f ) of paragraph 2 of the Third Schedule to the Taxes Act an amount so received
or accrued shall, notwithstanding that it is so proved to constitute "gross income" as
so defined, constitute a gross capital amount;
(b) "capital amount" means the amount remaining of the gross capital
amount of any person, after deducting therefrom any amounts exempt from capital
gains tax under this Act;
(c) "capital gain" means the amount remaining, after deducting from the
capital amount of any person all the amounts allowed to be deducted from a capital
amount under this Act.
(2) For the purposes of the definition of "gross capital amount" in subsection (1)-
(a) when owing to a variation in the rate of exchange of currency between
Zimbabwe and any other country, the amount received, expressed in Zimbabwean
currency, differs from the amount that had accrued prior to the variation in the rate of
exchange-
(i) the amount to be included in the gross capital amount shall be the said
amount received, expressed in Zimbabwean currency; and
(ii) if the receipt and the accrual occur in different years of assessment,
effect shall be given to the increase or reduction in the gross capital amount in the
year of assessment in which the amount accrued;
(b) where a person disposes of a specified asset otherwise than by way of
sale such disposal shall be deemed to be a sale and an amount which, in the opinion
of the Commissioner, is equal to the fair market price of such asset at the time of
disposal shall be deemed to have accrued to such person at such time;
(c) where a specified asset is expropriated such specified asset shall be
deemed to have been sold for an amount equal to the amount paid by way of
compensation for the expropriation of such specified asset;
(d) where a specified asset is sold in execution of the order of a court, the
amount for which it was sold shall be deemed to have accrued to the person on whose
behalf it was sold;
(e) where an amount accrues to a person by reason of the maturity or
redemption of a specified asset, or in circumstances which in the opinion of the
Commissioner are of a similar nature, such asset shall at the date of such accrual be
deemed to have been sold by such person for such amount;
( f ) where a person transfers to another person his rights under a deed of sale in respect of the passing of ownership of the specified asset which is the subject
of the deed of sale, he shall be deemed to have sold the specified asset to that other
person for an amount equal to the whole amount received by or accruing to him as a
result of the transfer.
9 When capital amount deemed to have accrued
A capital amount shall be deemed to have accrued to a person in the circumstances
set out in subsections (1) and (2) of section 10 of the Taxes Act, the provisions of
which shall, for the purposes concerned, apply mutatis mutandis in relation to this
Act.
10 Exemptions from capital gains tax
There shall be exempt from capital gains tax-
(a) the receipts and accruals of bodies referred to in paragraphs 1, 2 and 3
of the Third Schedule to the Taxes Act, other than those referred to in subparagraphs
(a), (c) and ( f ) of paragraph 2;
(b) amounts received or accrued on the realization or distribution by the
executor of a deceased estate of a specified asset forming part of such estate;
(c) amounts received or accrued on the sale of any marketable security
being any bond or stock in respect of any loan to-
(i) the State or any company all the shares of which are owned by the
State;
(ii) a local authority;
(iii) a statutory corporation;
(d ) amounts received or accrued on the sale, by a person carrying on life
insurance business as defined in subparagraph (1) of paragraph 1 of the Eighth
Schedule to the Taxes Act, of specified assets which are investments in Zimbabwe for
the purposes of factor F or G in the formula in paragraph 6 of that Schedule;
(e) amounts received or accrued on the sale of any shares in the
Zimbabwe Development Bank established by section 3 of the Zimbabwe
Development Bank Act [Chapter 24:14].where such sale is by an institutional
shareholder as defined in that Act who is not ordinarily resident in Zimbabwe;
( f ) amounts received or accrued on the sale by a petroleum operator,
approved by the Minister by notice in the Gazette, of immovable property used for
the purposes of petroleum operations, to another petroleum operator, if the
Commissioner is satisfied that the property is to be used for such purposes by the
purchaser;
(g) the receipts and accruals of a licensed investor from the sale of a
specified asset forming the whole or part of the investment to which his investment
licence relates.
(h) the receipts and accruals of an industrial park developer from the sale
of a specified asset that forms part of or is connected with his industrial park.
[Subpara (h) inserted by s 3 of the Presidential Powers (Temporary Measures)
(Capital Gains Withholding Tax) Regulations, 1999, SI 222E of 1999, dated 7 July
1999 - and subsequently by s 18 of the Finance Act 22 of 1999 with effect from
7 July 1999.]
(i) amounts received or accrued on the sale or disposal of any shares
withheld by an insurance company in the circumstances described in subparagraph
(2) of paragraph 6 of the Twenty-Seventh Schedule to the Income Tax Act [Chapter
23:06].
[subpara (i) inserted by Act 18 of 2000 from 1st January, 1999.]
( j) amounts received or accrued on the sale of any marketable security
that is a listed security as defined in the Zimbabwe Stock Exchange Act [Chapter24:18].
[subpara (j) inserted by Act 27 of 2001 from 1st January, 2002.]
(k) amounts received by or accruing to an employee from the sale or
disposal of his shares or interest in an approved employee share ownership trust
where such sale or disposal is to the trust.
[inserted by Act 15 of 2002 with effect from 1st January, 2003.]
11 Deductions allowed in determination of capital gain
(1) For the purposes of determining the capital gain of any person there shall be
deducted from the capital amount of such person the amounts allowed to be deducted
in terms of this section:
Provided that when, owing to a variation in the rate of exchange of currency between
Zimbabwe and any other country, the amount actually paid in Zimbabwean currency
differs from the amount of the liability that had been incurred prior to the variation in
the rate of exchange-
(a) the amount to be deducted shall be the amount actually paid in
Zimbabwean currency;
(b) if the incurring of the liability and the payment therefor occur in
different years of assessment, effect shall be given to the increase or reduction in the
amount in the year of assessment in which the liability was incurred.
(2) The deductions which shall be allowed for the purposes of subsection (1) shall
be-
(a) expenditure to the extent to which it is incurred on the acquisition or
construction of such specified assets as are sold during the year of assessment other
than expenditure in respect of which a deduction is allowable in the determination of
the seller's taxable income as defined in subsection (1) of section 8 of the Taxes Act.
For the purposes of this paragraph where a person has acquired a
specified asset-
(i) by way of inheritance, he shall be deemed to have incurred
expenditure on such acquisition to an amount which is equal to the amount at which
the specified asset was valued in the deceased estate concerned;
(ii) otherwise than by way of purchase or inheritance-
A. prior to the 1st August, 1981, he shall be deemed to have incurred
expenditure on such acquisition to an amount which is equal to an amount proved to
the satisfaction of the Commissioner to be the fair market value of the specified asset
at the time it was so acquired;
B. on or after the 1st August, 1981, he shall be deemed to have incurred
expenditure on such acquisition to an amount equal to the amount, if any, included in
respect of the specified asset-
I. for the purposes of this Act, in the gross capital amount of the person
disposing of the specified asset; or
II. for the purposes of the Taxes Act, in the gross income, as defined in
subsection (1) of section 8 of that Act, of the person disposing of the specified asset;
(b) expenditure to the extent to which it is incurred on additions,
alterations or improvements to specified assets referred to in paragraph (a) other than
expenditure in respect of which a deduction is allowable in the determination of the
seller's taxable income as defined in subsection (1) of section 8 of the Taxes Act.
For the purposes of this paragraph, in the case of a capital amount
arising from the sale of shares in a company which owns immovable property, any
expenditure incurred by the seller on additions or alterations to the property shall be
deemed to be expenditure incurred on additions to the shares;
(c) the sum of one hundred per centum of- [increased from 30% by Act 15 of 2002, with effect from the 1st January, 2003 and
increased from 50% by Act 10 of 2003, with effect from the 1st January, 2004.]
(i) the amounts referred to in paragraph (a), other than any such amount
relating to any shares in a building society; and
(ii) the amounts referred to in paragraph (b); and
(iii) the amount of any expenditure in respect of which a deduction is
allowable in terms of the Taxes Act by way of an allowance in terms of the Fourth
Schedule, the Fifth Schedule or subparagraph (c), (e) or ( f ) of paragraph 2 of the
Seventh Schedule to that Act;
in respect of each year or part of a year of assessment from the date of
acquisition, construction, addition or alteration or deemed addition or alteration, as
the case may be, to the date of sale;
[Para (c) amended by s 33(a) of Act 13 of 1996 with effect from the year of
assessment beginning on 1 April 1996, and further amended by the increase of the %
allowed by Section 23 of the Finance Act No.27 of 2001 with effect from the year of
assessment beginning on the 1st January, 2002.]
(d ) any expenditure to the extent that it is directly incurred for the
purposes of or in connection with the sale of a specified asset;
(e) the amount of any debts due to the taxpayer to the extent to which
they are proved to the satisfaction of the Commissioner to be bad, if such amount is
included in the current year of assessment or was included in any previous year of
assessment in the taxpayer's capital amount in terms of this Act;
( f ) the amount of any costs, taxed by the Registrar of the High Court
during the year of assessment and not recovered from any source whatsoever,
incurred by the taxpayer in connection with an appeal to the High Court or the
Special Court in terms of Part VI, if-
(i) the appeal is allowed in full; or
(ii) the appeal is allowed to a substantial degree and the High Court or the
Special Court, as the case may be, directs that such costs shall be allowed as a
deduction in terms of this paragraph:
Provided that-
(i) if any determination of the High Court or the Special Court is
reversed, affirmed or amended by the Supreme Court, no deduction shall be made in
terms of this paragraph unless the decision of the Supreme Court is wholly or
substantially favourable to the taxpayer
(g) the amount of any costs, taxed by the Registrar of the Supreme Court
during the year of assessment and not recovered from any source whatsoever,
incurred by the taxpayer in connection with an appeal to the Supreme Court in terms
of Part VI, if-
(i) the decision of the Supreme Court is wholly or substantially
favourable to the taxpayer; and
(ii) the Supreme Court directs that such costs shall be allowed as a
deduction in terms of this paragraph;
(h) where, after the application of the above paragraphs, the total amount
of the capital gains of a person in any year of assessment is one thousand dollars or
less, an amount equal to such total amount.
(3) From the amount of the capital amount remaining after the deductions referred to
in subsection (2) have been made there shall be deducted any assessed capital loss
determined in respect of the previous year of assessment:
Provided that-
(i) if during any year of assessment there is a change in the shareholding of a company with an assessed capital loss or in the shareholding of any company
which directly or indirectly controls any company with an assessed capital loss and
the Commissioner is satisfied that such change has been effected solely or mainly in
pursuance of or in connection with any scheme for taking advantage of such assessed
capital loss, no assessed capital loss incurred prior to that change shall be deductible.
For the purposes of this subparagraph a company shall be deemed to
be controlled by another company if the majority of the voting rights attaching to all
classes of its shares are held directly or indirectly by such other company;
(ii) no taxpayer who-
(a) has been adjudged or otherwise declared or become insolvent; or
(b) has made an assignment of his property or estate for the benefit of his
creditors;
shall be entitled to carry forward an assessed capital loss incurred
before the date he was adjudged or otherwise declared or became insolvent or made
the assignment, as the case may be;
(iii) where-
(a) a company which is incorporated under the Companies Act [Chapter
24:03] and which has an assessed capital loss is converted into a private business
corporation; or
(b) a private business corporation with an assessed capital loss is
converted into a company in terms of the Companies Act [Chapter 24:03];
the new private business corporation or the new company, as the case
may be, shall be allowed the assessed capital loss as a deduction after the conversion.
(4) Where, in respect of any amount, a deduction would, but for this subsection, be
allowable under more than one provision of this Act and whether it would be so
allowable in respect of the same or different years of assessment, the taxpayer shall
not be entitled to claim that such amount shall be deducted more than once and,
where the deduction would, but for this subsection, be allowable under more than one
provision of this Act in respect of the same year of assessment, the taxpayer shall
elect under which one of those provisions he wishes to claim such amount as a
deduction.
(5) Where the owner of immovable property has, as the lessor of such property, been
charged to income tax in terms of paragraph (e) of the definition of "gross income" in
subsection (1) of section 8 of the Taxes Act, he shall be deemed to have incurred
expenditure in terms of paragraph (a) or (b) of subsection (2) in relation to such
immovable property equal to the amount so included in his taxable income at the time
of such inclusion.
(6) Where a person transfers to another person his rights under a deed of sale in
respect of the passing of ownership of the specified asset which is the subject of the
deed of sale, he shall be deemed for the purposes of this section to have acquired the
specified asset from the person with whom he entered into the deed of sale for an
amount equal to the amount payable by him under the deed of sale.
12 Circumstances in which no deductions may be made
Notwithstanding the provisions of section eleven, no deduction shall be made in
respect of expenditure on or in relation to specified assets the sale of which is exempt
from tax.
13 Damage to or destruction of specified asset
(1) Subject to subsections (2) and (3), where a specified asset is damaged or
destroyed it shall for the purposes of the definition of "gross capital amount" in
subsection (1) of section eight be deemed to have been sold for an amount equal to
the amount of any receipt or accrual in respect of such damage or destruction. (2) Where the amount referred to in subsection (1) does not exceed the total of the
amounts referred to in paragraphs (a) and (b) of subsection (2) of section eleven in
respect of that asset-
(a) such asset shall not be deemed to have been sold; and
(b) such total amount shall be deemed to be reduced accordingly with
effect from the commencement of the year of assessment in which the receipt or
accrual occurs; and
(c) the amount of any subsequent deductions in terms of paragraph (c) of
that subsection shall be calculated in relation to such reduced total amount.
(3) Where a specified asset is damaged or destroyed and the Commissioner is
satisfied that the whole or part of any receipt or accrual in respect of such damage or
destruction has been or will be expended, within two years from the date on which the
specified asset was damaged or destroyed, on-
(a) the purchase or construction of a further specified asset of a like nature
in replacement of the damaged or destroyed specified asset; or
(b) the repair of the specified asset, where the specified asset was
damaged;
the provisions of subsections (1) and (2)-
(i) shall not apply in relation to the amount so expended;
(ii) shall apply, with effect from the year of assessment in which the
damage or destruction occurred or such later year of assessment as the Commissioner
may determine, in relation to any part of the receipt or accrual not so expended.
(4) Expenditure to which subsection (3) relates shall not be allowable as a deduction
in terms of section eleven upon the subsequent sale of the specified asset concerned.
14 Determination of fair market price of specified assets
Where a person purchases a specified asset from any other person at a price in excess
of the fair market price or where he sells a specified asset to any other person at a
price less than the fair market price the Commissioner may, for the purpose of
determining the capital gain or assessed capital loss, as the case may be, of such first-
mentioned person, determine the fair market price at which such purchase or sale
shall be taken into his accounts or returns for assessment.
15 Transfers of specified assets between companies under the same control
(1) If the ownership of any specified asset is transferred from one company to
another in any of the following circumstances-
(a) where the Commissioner is satisfied that-
(i) the company that transfers the specified asset-
A. is incorporated outside Zimbabwe; and
B. has carried on its principal business inside Zimbabwe; and
C. is about to be wound up voluntarily in its country of incorporation for
the purpose of the transfer of the whole of its business and property wherever situate
to the company to which the specified asset is transferred;
and
(ii) the sole consideration for the transfer will be the issue, to the
members of the company transferring the specified asset, of shares in the company to
which the specified asset is transferred, in proportion to their holdings in the first-
mentioned company; and
(iii) no shares in the company to which the specified asset is transferred
will be available for issue to any persons other than members of the company
transferring the specified asset;
or
(b) the transfer is effected from one company to another under the same control, in the course of or in furtherance of a scheme of reconstruction of a group of
companies or a merger or other business operation which, in the opinion of the
Commissioner, is of a similar nature;
or
(c) the transfer is effected-
(i) from a company incorporated under the Companies Act [Chapter
24:03] to a private business corporation into which the company has been converted
in terms of the Private Business Corporations Act [Chapter 24:11]; or
(ii) from a private business corporation to a company into which the
private business corporation has been converted in terms of the Companies Act
[Chapter 24:03];
in the course of or in furtherance of that conversion;
the transferor and the transferee may elect that, notwithstanding the terms of any
agreement of sale, the selling price of the asset shall, in relation to the transferor, be
deemed, for the purposes of this Act, to be an amount equal to the sum of the
deductions allowable to the transferor in respect of the specified asset in terms of
paragraphs (a), (b), (c) and (d) of subsection (2) of section eleven at the date of the
transfer:
Provided that, if the specified asset is subsequently sold, otherwise than to a company
under the same control, the capital gain or capital loss in the hands of the seller shall
be calculated as if the asset had at all times remained in the ownership of the first
transferor in respect of whom the election was made in terms of this section.
(2) Where in the circumstances referred to in paragraph (a) or (b) of subsection (1), a
marketable security issued by a company involved in the scheme, merger or operation
is transferred from one person to another for no cash consideration, in exchange for a
marketable security issued by another such company, the transferor may elect that,
notwithstanding the terms of any agreement of sale, the marketable security
transferred by him shall be deemed to have been sold for an amount equal to the sum
of the deductions allowable to him at the date of transfer in terms of paragraphs (a),
(b), (c) and (d) of subsection (2) of section eleven in respect of the marketable
security transferred by him.
(3) An election in terms of subsection (2) shall be made not later than the date on
which the person making the election submits a return for the assessment of his
capital gain for the purposes of this Act.
16 Transfers of specified assets between spouses
(1) In this section-
"principal private residence" has the meaning given to it in section twenty-one.
(2) Where-
(a) the ownership of any specified asset is transferred from a person to his
or her spouse; or
(b) a person transfers the ownership of a specified asset which is his
principal private residence to his former spouse in compliance with an order of a
court providing for the maintenance of the former spouse or dividing, apportioning or
distributing the assets of the former spouses on or after the dissolution of their
marriage;
the transferor and the transferee may elect that, notwithstanding the terms of any
agreement of sale, the selling price of the specified asset shall in relation to the
transferor be deemed, for the purposes of this Act, to be an amount equal to the sum
of the deductions allowable to the transferor in respect of the specified asset in terms
of paragraphs (a), (b), (c) and (d) of subsection (2) of section eleven at the date of
transfer: Provided that, if after the transfer such asset is sold to a person who is not the spouse
of the seller, the capital gain or assessed capital loss in the hands of the seller shall be
calculated as if the asset had at all times remained in the ownership of the first
transferor to whom this section applies.
(3) An election in terms of subsection (2) shall be made not later than the date on
which the person making the election submits a return for the assessment of his
capital gain for the purposes of this Act.
17 Transfer of business property by individual to company under his control
If the ownership of any immovable property is transferred on or after the 1st April,
1991, from an individual to a company in circumstances where the Commissioner is
satisfied that-
(a) the immovable property was previously used by the individual for the
purposes of his trade; and
(b) the company will continue to use the immovable property for the
purposes of its trade; and
(c) the individual controls the company, whether through holding a
majority of the company's shares or otherwise;
the transferor and the transferee may elect that, notwithstanding the terms of any
agreement of sale, the selling price of the immovable property shall, in relation to the
transferor, be deemed, for the purposes of this Act, to be an amount equal to the sum
of the deductions allowable to the transferor in respect of the immovable property in
terms of paragraphs (a), (b), (c) and (d) of subsection (2) of section eleven at the date
of the transfer:
Provided that, if after the transfer the immovable property is sold, otherwise than to a
company under the same control, the capital gain or assessed capital loss in the hands
of the seller shall be calculated as if the property had at all times remained in the
hands of the first transferor to whom this section applies.
(2) An election in terms of subsection (1) shall be made not later than the date on
which the person making the election submits a return for the assessment of his
capital gain for the purposes of this Act.
18 Provisions for sales of immovable property under suspensive conditions
(1) If any taxpayer has entered into any agreement with any other person in respect
of any specified asset the effect of which is that ownership shall pass from the
taxpayer to that other person upon or after receipt by the taxpayer of the whole or a
certain portion of the amount payable to the taxpayer under the agreement, the whole
of the amount shall, for the purposes of this Act, be deemed to have accrued to the
taxpayer on the date on which the agreement was entered into:
Provided that-
(i) the Commissioner shall deduct an allowance determined by applying
the formula-
in which-
A represents that portion of the amount deemed to have accrued under
the agreement which is not receivable at the end of the year of assessment;
B represents the capital amount deemed to have accrued under the
agreement;
C represents the aggregate of the sums deductible in respect of such
specified asset in terms of paragraphs (a), (b), (c) and (d) of subsection (2) of section
eleven;
D represents the amount deemed to have accrued under the agreement;
(ii) any allowance so deducted shall be included by the taxpayer as acapital amount in his return for the following year of assessment and shall form part
of the capital amount of the said taxpayer;
(iii) if any such agreement is ceded or otherwise disposed of by the
taxpayer no such allowance shall be made by the Commissioner in the year of
assessment in which such cession or disposal takes place.
(2) Where any agreement referred to in subsection (1) is cancelled there shall be
included in the capital amount or assessed capital loss, as the case may be, of the
seller in the year of assessment in which such cancellation takes place an amount
equal to the difference between the total of the amounts received by the seller in
terms of the agreement and the total of the amounts included in the capital gains of
the seller in terms of that subsection, and that subsection shall cease to have effect
after that year of assessment.
(3) Where the capital amount of a person for any year of assessment includes any
amount to which this section relates no deduction shall be allowed in respect of the
amount referred to in paragraph (h) of subsection (2) of section eleven.
(4) Where a person transfers to another person his rights under a deed of sale in
respect of the passing of ownership of the specified asset which is the subject of the
deed of sale. he shall be deemed for the purposes of this section to have entered into
an agreement in respect of the specified asset the effect of which is that ownership
shall pass from him to the other person concerned, and this section shall apply,
mutatis mutandis, accordingly.
19 Provisions relating to credit sales where ownership passes
(1) If any taxpayer has entered into any agreement with any other person in respect
of any specified asset the effect of which is that-
(a) the ownership shall pass to that other person on delivery of the
specified asset; and
(b) the amount payable to the taxpayer under the agreement shall be paid
in instalments;
the whole of that amount shall, for the purposes of this Act, be deemed to have
accrued to the taxpayer on the date on which the agreement was entered into:
Provided that-
(i) the Commissioner, taking into consideration any deduction under
paragraph (e) of subsection (2) of section eleven, may deduct such further allowance
as seems to him reasonable in respect of all amounts which are deemed to have
accrued under such agreement but are not receivable at the end of the year of
assessment;
(ii) any allowance so deducted shall he included by the taxpayer as a
capital amount in his return for the following year of assessment and shall form part
of the capital amount of the taxpayer.
(2) Where the capital amount of a person for any year of assessment includes any
amount to which this section relates, no deduction shall be allowed in respect of the
amount referred to in paragraph (h) of subsection (2) of section eleven.
20 Provisions for the reductions in costs of specified assets
Where an amount is received or accrues, whether by way of recovery or of
recoupment or otherwise, relating to the cost or deemed cost of a specified asset
which has not been sold-
(a) if such amount exceeds the total of the amounts referred to in
paragraphs (a) and (b) of subsection (2) of section eleven in respect of that asset, such
asset shall be deemed to have been sold for an amount equal to the amount so
received or accrued;
(b) if such amount does not exceed the total of the amounts referred to m paragraphs (a) and (b) of subsection (2) of section eleven in respect of that asset-
(i) such total amount shall be deemed to be reduced accordingly with
effect from the commencement of the year of assessment in which the receipt or
accrual occurs; and
(ii) the amount of any subsequent deductions in terms of paragraph (c) of
that subsection shall be calculated in relation to such reduced total amount;
and the asset shall be deemed to have been sold on the date of the final
such receipt or accrual.
21 Provision for sales of principal private residences
(1) In this section-
"dwelling" means a building, or any part of a building, which is used wholly or
mainly for the purpose of residential accommodation;
"principal private residence", in relation to an individual, means-
(a) a dwelling which is proved to the satisfaction of the Commissioner-
(i) to have been that individual's sole or main residence throughout the
period that he owned it; or
(ii) to have been that individual's sole or main residence for a period of
four years or more immediately before the date of its sale, or for such shorter period
immediately before the date of its sale as the Commissioner considers reasonable in
all the circumstances; or
(iii) to have been regarded by that individual as his sole or main residence,
even though he was prevented from residing in it as provided in subparagraph (i) or
(ii) in consequence of his employment or for such other cause as the Commissioner
considers reasonable in all the circumstances;
and
(b) subject to subsection (5), any land, whether or not it is a piece of land
registered as a separate entity in a Deeds Registry, which-
(i) is owned by the individual concerned; and
(ii) surrounds or is adjacent to the dwelling referred to in paragraph (a);
and
(iii) is used by the individual concerned primarily for private or domestic
purposes in association with the dwelling referred to in paragraph (a).
(2) An individual may elect that, where a capital gain has been received by or has
accrued to him on or after the 1st April, 1988, in respect of the sale by him of his
principal private residence (hereinafter in this section called the "old principal private
residence") and the Commissioner is satisfied that, before the end of the year of
assessment next following the sale, an amount equal to the whole or part of the
consideration received or accrued in respect of the sale has been or will be expended
on the purchase or construction, on land owned by him in Zimbabwe, of another
principal private residence (hereinafter in this section called the "new principal
private residence") for the individual concerned-
(a) capital gains tax shall not be chargeable, if the amount of the
consideration so received or accrued is equal to or less than the amount so expended;
and
(b) capital gains tax shall be chargeable, if the amount of the
consideration so received or accrued exceeds the amount so expended, on a
proportion of the capital gain determined by applying the following formula-
in which-
A represents that portion of the amount of the consideration received or
accrued on the sale of the old principal private residence not so expended on thepurchase or construction of the new principal private residence;
B represents the total amount of the consideration received or accrued on
the sale of the old principal private residence;
C represents the capital gain in respect of the sale of the old principal
private residence.
(2a) An election in terms of subsection (2) shall be made not later than the date on
which the individual making the election submits a return for the assessment of his
capital gain for the purposes of this Act.
[Subsection (2a) inserted by Finance Act (No. 2) 21 of 1999 from 1 January 2000.]
(3) Where an amount is not chargeable to capital gains tax in terms of subsection (2),
such amount shall be deducted from the amount referred to in paragraph (a) of sub-
section (2) of section eleven when determining the capital gain in respect of the new
principal private residence, with effect from the year of assessment in which the new
principal private residence was acquired.
(4) For the purposes of this section, where-
(a) a building owned by a company, partnership or other association of
persons consists of or contains one or more flats, apartments or other units of
residential accommodation; and
(b) the members of the company, partnership or association, as the case
may be, have the right, by virtue of their membership, to occupy particular flats,
apartments or units of residential accommodation in the building;
an individual who, by becoming or ceasing to be a member of the company,
partnership or association concerned, acquires or relinquishes such a right of
occupation, shall be deemed to have purchased or sold, as the case may be, the flat,
apartment or unit of residential accommodation concerned.
(5) Where-
(a) land referred to in paragraph (b) of the definition of "principal private
residence" in subsection (1); or
(b) a garage, storeroom or other structure referred to in paragraph (c) of
the definition of "principal private residence" in subsection (1);
is disposed of separately from the dwelling in association with which it was used, this
section shall not apply in relation to its disposal.
(6) Where a principal private residence is sold together with or as part of other
immovable property which is not used wholly or mainly for the purposes of
residential accommodation, the proportion of-
(a) the gross capital amount in the hands of the transferor; or
(b) the cost of acquisition in the hands of the transferee;
received or accruing in respect of the sale of the principal private residence shall be
deemed to be-
(i) such proportion as may be specified by both the parties to the sale in a
joint written statement which is submitted to the Commissioner and which is accepted
by him; or
(ii) where no statement has been submitted to the Commissioner in terms
of paragraph (i) or where the Commissioner has not accepted such a statement, such
proportion as may be determined by the Commissioner to be fair and reasonable.
22 Substitution of business property
(1) A taxpayer may elect that, where a capital gain has been received by or accrued
to him on or after the 1st April, 1991, in respect of the sale by him of immovable
property previously used for the purposes of his trade (hereinafter in this section
called the "old property") and the Commissioner is satisfied that, before the end of
the year of assessment next following the sale, an amount equal to the whole or partof the consideration received or accrued in respect of the sale has been or will be
expended on the purchase or construction of other immovable property (hereinafter in
this section called the "new property") to be used for the purposes of his trade-
(a) capital gains tax shall not be chargeable, if the amount of the
consideration so received or accrued is equal to or less than the amount so expended;
and
(b) capital gains tax shall be chargeable, if the amount of the
consideration so received or accrued exceeds the amount so expended, on a
proportion of the capital gain determined by applying the following formula-
in which-
A represents that portion of the amount of the consideration received or
accrued on the sale of the old property not so expended on the purchase or
construction of the new property;
B represents the total amount of the consideration received or accrued on
the sale of the old property;
C represents the capital gain in respect of the sale of the old property.
(1a) An election in terms of subsection (1) shall be made not later than the date on
which the taxpayer making the election submits a return for the assessment of his
capital gain for the purposes of this Act.
Subsection (1a) inserted by Finance Act (No. 2) 21 of 1999 from 1 January 2000]
(2) Where an amount is not chargeable to capital gains tax in terms of subsection (1),
such amount shall be deducted from the amount referred to in paragraph (a) of sub-
section (2) of section eleven when determining the capital gain in respect of the new
property, with effect from the year of assessment in which the new property was
acquired.
PART IIIA
CAPITAL GAINS WITHHOLDING TAX
22A Interpretation in Part IIIA
In this Part-
"depositary" means-
(a) a conveyancer, legal practitioner, estate agent or other person who¾
(i) on behalf of any party to a sale of immovable property, holds the
whole or any part of the price paid or payable in respect of the sale; and
(ii) is required, on completion of the sale or on transfer of the property, to
pay the whole or any part of the amount he holds to the seller of the immovable
property or to some other person for the seller's credit; or
(b) a building society registered in terms of the Building Societies Act
[Chapter 24:02]; or
(c) the Sheriff or Master of the High Court; or
(d) a stockbroker, financial institution or other person who¾
(i) on behalf of any party to a sale of a marketable security, holds the
whole or any part of the price paid or payable in respect of the sale; and
(ii) is required, on completion of the sale or on transfer of the marketable
security, to pay the whole or any part of the amount he holds to the seller of the
marketable security or to some other person for the seller's credit;
[amended by Finance Act 10 of 2003 with effect from the year of assessment
beginning 1 January 2004]
"payee" means a person to whom a depositary pays or is required to pay an amount
held by him as depositary in respect of the sale of a specified asset.
22B Capital gains withholding tax There shall be charged, levied and collected throughout Zimbabwe in accordance
with this Part, for the benefit of the Consolidated Revenue Fund, a capital gains
withholding tax calculated in accordance with the Finance Act [Chapter 23:04].
22C Depositaries to withhold tax
(1) Subject to subsections (5) and (7), every depositary who, in consequence of the
sale or transfer of a specified asset, pays any amount held by him as depositary to or
for the credit of the seller of the specified asset shall withhold capital gains
withholding tax from that amount and shall pay the amount withheld to the
Commissioner on or before the last day of the month following the month in which
the payment was made or within such further time as the Commissioner may for good
cause allow.
[Subsection (1) amended by the Finance Act 22 of 1999 with effect from 7 July
1999.]
(2) If the capital gains withholding tax payable in respect of any sale or transfer
exceeds the amount held by a depositary, the depositary shall pay the full amount
held by him to the Commissioner in accordance with subsection (1).
(3) Where capital gains withholding tax is withheld in accordance with subsection
(1), the depositary shall provide the payee with a certificate, in a form approved by
the Commissioner, showing the following particulars-
(a) the depositary's name and address; and
(b) the payee's name and address; and
(c) particulars of the property sold; and
(d) the amount of capital gains withholding tax that has been withheld.
(4) Where two or more depositaries hold the whole or any part of the price paid or
payable in respect of any one sale of a specified asset¾¾
(a) they shall be severally liable for payment of the full amount of capital
gains withholding tax in respect of that sale, up to the amount held by them; and
(b) payment by any one of them of any amount of capital gains
withholding tax in terms of this section shall absolve the others or reduce their
liability pro tanto, as the case may be.
(5) A depositary need not withhold capital gains withholding tax in terms of
subsection (1) if, before he pays any amount to or for the credit of the seller of the
specified asset concerned¾¾
(a) he or the seller applies to the Commissioner for a clearance certificate
in respect of the sale of that specified asset, and provides the Commissioner with such
information regarding the sale as the Commissioner may reasonably require; and
(b) the Commissioner, being satisfied that¾¾
(i) no capital gains tax is likely to be payable in respect of the sale or that
any capital gains tax so payable is likely to be less than the capital gains withholding
tax required to be withheld in terms of subsection (1); and
(ii) adequate arrangements have been or will be made for the payment of
any capital gains tax payable in respect of the sale;
has issued a clearance certificate in respect of the sale.
(6) A clearance certificate may be issued in terms of subsection (5) on such terms
and conditions as the Commissioner may fix, including terms and conditions relating
to the furnishing of a return or interim return for the assessment of capital gains tax.
(7) Where the amount held by a depositary represents the whole or part of an
instalment payable in a sale by instalments, the amount of capital gains withholding
tax to be withheld from that amount and paid to the Commissioner in terms of
subsection (1) shall be calculated as if the instalment were the full price at which the
specified asset concerned was sold. 22D Agents to withhold tax not withheld by depositaries
(1) Subject to subsections (7) and (9) where-
(a) an agent, on behalf of a payee, receives from a depositary an amount
which represents the whole or part of the price of a specified asset; and
(b) capital gains withholding tax has not been withheld from that amount
in terms of section twenty-two C, nor has a clearance certificate been issued in terms
of that section in respect of the sale of the specified asset concerned;
the agent shall withhold capital gains withholding tax from that amount and shall pay
the tax withheld to the Commissioner on or before the last day of the month following
the month in which he received the amount or within such further time as the
Commissioner may for good cause allow.
(2) Where capital gains withholding tax is withheld in accordance with subsection
(1), the agent shall provide the payee with a certificate, in a form approved by the
Commissioner, showing the following particulars, to the extent that the agent knows
them-
(a) the depositary's name and address; and
(b) the payee's name and address; and
(c) particulars of the property sold; and
(d) the amount of capital gains withholding tax that has been withheld.
(3) For the purpose of this section, a person shall be deemed to be the agent of a
payee and to have received an amount on behalf of that payee if-
(a) that person's address appears as the address of the payee in the records
of the depositary who paid the amount; and
(b) the warrant, cheque or draft in payment of the amount is delivered at
that person's address.
(4) Where a trust receives from a depositary an amount-
(a) to the whole or part of which a beneficiary is entitled in terms of the
trust; or
(b) which in terms of section nine is deemed to accrue to a person as a
capital gain;
then-
(i) a trustee of that trust shall be deemed for the purpose of this section to
be an agent in respect of that amount; and
(ii) any such beneficiary shall be deemed for the purpose of this section to
be a payee in respect of that amount.
(5) Any person deemed to be the agent of a payee in terms of subsection (3) or (4)
shall, as regards the payee and in respect of any capital gain accruing to or in favour
of the payee, have and exercise all the powers, duties and responsibilities of a person
declared to be the agent of a taxpayer in terms of section 58 of the Taxes Act.
(6) Where two or more agents hold the whole or any part of the price paid in respect
of any one sale of a specified asset-
(a) they shall be severally liable for payment of the full amount of capital
gains withholding tax in respect of that sale, up to the amount held by them; and
(b) payment by any one of them of any amount of capital gains
withholding tax in terms of this section shall absolve the others or reduce their
liability pro tanto, as the case may be.
(7) An agent need not withhold capital gains withholding tax in terms of subsection
(1) if, before he pays any amount to or for the credit of the seller of the specified asset
concerned-
(a) he or the seller applies to the Commissioner for a clearance certificate
in respect of the sale of that specified asset, and provides the Commissioner with suchinformation regarding the sale as the Commissioner may reasonably require; and
(b) the Commissioner, being satisfied that-
(i) no capital gains tax is likely to be payable in respect of the sale or that
any capital gains tax so payable is likely to be less than the capital gains withholding
tax required to be withheld in terms of subsection (1); and
(ii) adequate arrangements have been or will be made for the payment of
any capital gains tax payable in respect of the sale;
has issued a clearance certificate in respect of the sale.
(8) A clearance certificate may be issued in terms of subsection (7) on such terms
and conditions as the Commissioner may fix, including terms and conditions relating
to the furnishing of a return or interim return for the assessment of capital gains tax.
(9) Where the amount received by an agent represents the whole or part of an
instalment payable in a sale by instalments, the amount of capital gains withholding
tax to be withheld from that amount and paid to the Commissioner in terms of
subsection (1) shall be calculated as if the instalment were the full price at which the
specified asset concerned was sold.
22E Payee to pay tax not withheld by depositary or agent
(1) Subject to subsections (2) and (4), where-
(a) a payee receives an amount which represents the whole or part of the
price of a specified asset; and
(b) capital gains withholding tax has not been withheld from that amount
in terms of section twenty-two C or twenty-two D, nor has a clearance certificate
been issued in terms of either of those sections in respect of the sale of the specified
asset concerned;
the payee shall pay to the Commissioner, on or before the last day of the month
following the month in which the amount was received or within such further time as
the Commissioner may for good cause allow, the amount of capital gains withholding
tax that should have been withheld.
(2) A payee need not pay capital gains withholding tax in terms of subsection (1) if,
before end of the period within which it is required to be paid in terms of that
subsection-
(a) he applies to the Commissioner for a clearance certificate in respect of
the sale of that specified asset, and provides the Commissioner with such information
regarding the sale as the Commissioner may reasonably require; and
(b) the Commissioner, being satisfied that-
(i) no capital gains tax is likely to be payable in respect of the sale or that
any capital gains tax so payable is likely to be less than the capital gains withholding
tax required to be withheld in terms of subsection (1); and
(ii) adequate arrangements have been or will be made for the payment of
any capital gains tax payable in respect of the sale;
has issued a clearance certificate in respect of the sale.
(3) A clearance certificate may be issued in terms of subsection (2) on such terms
and conditions as the Commissioner may fix, including terms and conditions relating
to the furnishing of a return or interim return for the assessment of capital gains tax.
(4) Where the amount received by a payee represents the whole or part of an
instalment payable in a sale by instalments, the amount of capital gains withholding
tax to be withheld from that amount and paid to the Commissioner in terms of
subsection (1) shall be calculated as if the instalment were the full price at which the
specified asset concerned was sold.
22F Exemptions
Notwithstanding section twenty-two C, twenty-two D or twenty-two E, capital gains withholding tax need not be withheld or paid where the amount concerned is exempt
from capital gains tax in terms of section ten.
22FA Registration of depositaries
(1) Every person who acts as a depositary in the ordinary course of his business shall
apply to the Commissioner for a registration certificate-
(a) within thirty days after he commences that business; or
(b) in the case of a person who was carrying on that business before the
date of commencement of the Finance (No. 2) Act, 1999, within thirty days after that
date.
(2) An application in terms of subsection (1) shall be made in writing and shall be
accompanied by such information as the Commissioner may reasonably require to
ascertain the applicant's identity, the place where he conducts his business and the
nature and extent of his business as a depositary.
(3) On a receipt of an application in terms of subsection (1) and any information he
may have required in terms of subsection (2), the Commissioner shall promptly issue
the applicant with a registration certificate in the form prescribed.
(4) Any one who contravenes subsection (1) shall be guilty of an offence and liable
to a fine not exceeding level three or to imprisonment for a period not exceeding one
month or to both such fine and such imprisonment.
[New Section inserted by Finance Act (No. 2) 21 of 1999 from the 1st January 2000,
and subs (4) amended by the Criminal Penalties Amendment Act 22 of 2001 with
effect from the 10th September, 2002.]
22G Depositaries to furnish returns
(1) Subject to subsection (4), every conveyancer, legal practitioner, estate agent,
stockbroker, financial institution and other person that performs the functions of a
depositary in the ordinary course of business shall, on or before the last day of every
month or at such other intervals as the Commissioner may permit, submit to the
Commissioner a statement in the form prescribed giving such particulars as may be
prescribed of¾¾
(a) all sales of specified assets which the person has concluded or
negotiated on behalf of any other person; and
(b) all amounts of capital gains withholding tax the person has withheld in
terms of section twenty-two C;
during the preceding month.
(2) A return submitted in terms of subsection (1) shall be accompanied by the
amount of capital gains withholding tax payable in respect of the sales to which the
return relates.
(3) Subject to subsection (4), payment of capital gains withholding tax by a
depositary, other than a depositary referred to in subsection (1), shall be accompanied
by a return in the form prescribed.
(4) Where a person performs the functions of a depositary¾¾
(a) in partnership or association with any other person, the Commissioner
may permit a joint return to be submitted in respect of sales concluded or negotiated,
and capital gains withholding tax withheld, by the partnership or association;
(b) as an employee, the Commissioner may permit his employer to submit
a return of sales the employee has concluded or negotiated and capital gains
withholding tax the employee has withheld, whether such return is submitted
individually or as part of a joint return referred to in paragraph (a);
and any return submitted in terms of this subsection shall be a sufficient discharge of
the person's obligations under subsection (1) or (3).
[Section substituted by SI 222E of 1999, dated 7 July 1999 and subsequently by s 22 of the Finance Act 22 of 1999 with effect from 7 July 1999.]
22H Penalty for non-payment of tax
(1) Subject to subsection (2), a depositary or an agent who fails to withhold or pay to
the Commissioner any capital gains withholding tax as provided in section twenty-
two C or twenty-two D shall be personally liable for the payment to the
Commissioner, not later than the date on which payment should have been made in
terms of section twenty-two C or twenty-two D, as the case may be, of-
(a) the amount of capital gains withholding tax which should have been
withheld; and
(b) a further amount equal to fifteen per centum of the capital gains
withholding tax which should have been withheld.
(2) If the Commissioner is satisfied in any particular case that a failure to pay capital
gains withholding tax was not due to any intent to evade the provisions of this Part,
he may waive the payment of the whole or such part as he thinks fit of the amount
referred to in paragraph (b) of subsection (1).
22I Refund of overpayments
If it is proved to the satisfaction of the Commissioner that any person has been
charged with capital gains withholding tax in excess of the amount properly
chargeable to him in terms of this Part, the Commissioner shall authorise a refund in
so far as it has been overpaid:
Provided that the Commissioner shall not authorise any such refund unless a claim for
it is made within six years of the date on which the tax was paid.
22J Credit where tax has been withheld
If a person to whom a capital gain has accrued proves to the Commissioner's
satisfaction that capital gains withholding tax has been paid in respect of that capital
gain, the capital gains withholding tax shall be allowed as a credit against any capital
gains tax chargeable in terms of this Act in respect of that capital gain, and any excess
shall be refunded.
22K Application of Part IIIA to sales concluded before 1.1.1999
(1) This Part shall not apply in respect of any sale of a specified asset which was
concluded before the 1st January, 1999, even if a depositary pays any amount after
that date to or for the credit of a seller as a consequence of that sale.
(2) Notwithstanding subsection (1), any amount paid purportedly by way of capital
gains withholding tax in respect of a sale referred to in subsection (1) shall be
regarded in all respects as if it had been validly paid in terms of this Part.
22L Suspension of provisions of Part IIIA relating to marketable securities
Notwithstanding sections twenty-two A to twenty-two H, this Part shall be suspended
in respect of-
(a) the charging, levying and collecting of capital gains withholding tax
on the sale of marketable securities; and
(b) the submission of returns by depositaries, to the extent that they hold
moneys representing the price paid or payable in respect of the sale of marketable
securities;
until such date as the Minister may specify by notice in the Gazette:
Provided that the date so specified shall not be earlier than one month after the date of
publication of the notice.
PART IV
RETURNS AND ASSESSMENTS
23 Application of provisions of Taxes Act relating to returns and assessments
For the purposes of providing for and giving effect to the matters concerned in
relation to this Act, the following provisions of the Taxes Act- (a) section 37 relating to the publication of notices regarding, and the
furnishing of, returns and interim returns ;
[Subsection (a) amended by SI 222E of 1999, dated 7 July 1999 and subsequently by
s 24 of the Finance Act 22 of 1999 from 1st January 1999.]
(b) section 38 relating to the income of minor children;
(c) section 39 relating to the furnishing of further returns and information;
(d) section 40 relating to the Commissioner having access to public
records;
(e) sections 41 and 42 relating to shareholdings;
( f ) section 43 relating to the submission of returns and the preparation of
accounts;
(g) section 44 relating to the production of documents and evidence on
oath;
(h) section 45 relating to estimated assessments;
(i) section 46 relating to additional tax in the event of default or
omission;
( j) section 47 relating to additional assessments;
(k) section 48 relating to reduced assessments and refunds;
(l) section 49 relating to amended assessments of loss;
(m) section 50 relating to adjustments of tax;
(n) section 51 relating to assessments and the recording thereof; and
(o) section 52 relating to copies of assessments;
shall apply, mutatis mutandis, in relation to this Act.
PART V
REPRESENTATIVE TAXPAYERS
24 Application of provisions of Taxes Act relating to representative taxpayer
For the purposes of providing for and giving effect to the matters concerned in
relation to this Act, the following provisions of the Taxes Act-
(a) section 53 relating to representative taxpayers;
(b) section 54 relating to the liability of representative taxpayers;
(c) section 55 relating to the right of representative taxpayers to
indemnity;
(d) section 56 relating to the personal liability of representative taxpayers;
(e) section 58 relating to the power to appoint an agent;
( f ) section 59 relating to the remedies of the Commissioner against an
agent or trustee;
(g) section 60 relating to the Commissioner's power to require
information; and
(h) section 61 relating to public officers of companies;
shall apply, mutatis mutandis, in relation to this Act.
PART VI
OBJECTIONS AND APPEALS
25 Objections and appeals
(1) Any taxpayer who is aggrieved by-
(a) any assessment made upon him under this Act; or
(b) any decision of the Commissioner mentioned in-
(i) paragraphs (b) and (e) of subsection (2) of section eight;
(ii) subparagraph A of subparagraph (ii) of paragraph (a) of subsection (2)
of section eleven;
(iii) proviso (i) to subsection (3) of section eleven;
(iv) subsection (3) of section thirteen; (v) section fourteen;
(vi) section fifteen;
(vii) proviso (i) to subsection (1) of section nineteen;
(viii) the definition of "principal private residence" in subsection (1) of
section twenty-one;
(ix) subsection (2) of section twenty-one;
(x) subsection (6) of section twenty-one;
may, unless it is otherwise provided in this Act, object to such assessment or decision
within thirty days after the date of the notice of assessment or of the written
notification of the decision in the manner and under the terms prescribed by this Act:
Provided that nothing herein contained shall give a further right of objection to the
amount of any assessed capital loss determined in respect of the previous year of
assessment.
(2) The provisions of-
(a) subsections (2), (3), (4), (5) and (6) of section 62 of the Taxes Act,
relating to objections; and
(b) sections 63 to 70 of the Taxes Act, relating to objections and appeals;
shall apply, mutatis mutandis, in relation to this Act for the purposes of providing for
and giving effect to the matters concerned in relation to this Act.
PART VII
PAYMENT AND RECOVERY OF TAX
26 Day and place for payment of tax
(1) Tax shall become due and payable on such date and shall be paid on or before
such days and at such places as may be notified by the Commissioner:
Provided that that nothing herein contained shall deprive any taxpayer of the right to
pay his tax through the post.
(2) If tax is not paid on or before the date notified by the Commissioner in terms of
subsection (1), interest, calculated at a rate to be fixed by the Minister, by statutory
instrument, shall be payable on so much of the tax as from time to time remains
unpaid by the taxpayer during the period beginning on the date specified by the
Commissioner in the notification as the date on which the tax shall be paid and
ending on the date the tax is paid in full:
Provided that in special circumstances the Commissioner may extend the time for
payment of the tax without charging interest.
(3) For the purposes of collecting the tax and any interest payable in terms of
subsection (1) and (2) the Commissioner shall have the same powers as are conferred
by the Taxes Act for the collection of income tax and the provisions of the Taxes Act
shall apply, mutatis mutandis, accordingly.
PART VIII
GENERAL
27 Application of provisions of Taxes Act relating to offences, evidence forms
and regulations
The provisions of-
(a) sections 81 to 86, relating to offences;
(b) sections 87 and 88, relating to evidence and proof;
(c) section 89, relating to forms and authentication and service of
documents;
(d) section 90, relating to regulations;
of the Taxes Act shall apply, mutatis mutandis, in relation to this Act, for the
purposes of providing for and giving effect to the matters concerned in relation to this
Act. 28 Application of provisions of Taxes Act relating to relief from double taxation
The provisions of section 91 of the Taxes Act relating to relief from double taxation
shall apply, mutatis mutandis, in relation to this Act, for the purposes of providing for
and giving effect to the matters concerned in relation to this Act.
29 Application of provisions of Taxes Act relating to tax avoidance
The provisions of section 98 of the Taxes Act relating to tax avoidance shall apply,
mutatis mutandis, in relation to this Act, for the purposes of providing for and giving
effect to the matters concerned in relation to this Act.
30 Transitional provision re capital gains and losses of married women
Where in terms of this Act a gross capital amount which was received by or accrued
to or in favour of a married woman in any year of assessment prior to the year of
assessment beginning on the 1st April, 1988, has been deemed to be a capital amount
received by or accrued to or in favour of her husband, then, for the purposes of
charging, levying and collecting tax in respect of the year of assessment beginning on
the 1st April, 1988, and any subsequent year of assessment-
(a) any capital gain accruing to or assessed capital loss carried forward by
her husband from that source; or
(b) any right of election exercised by or allowance or deduction granted to
her husband in respect of the capital gain or assessed capital loss referred to in
paragraph (a);
shall be deemed to have accrued to or been carried forward or exercised by or been
granted to, as the case may be, the married woman, and the same consequences shall
follow and the same rights accrue to the married woman as would have followed or,
as the case may be, accrued to her husband in respect of that capital gain, assessed
capital loss, election, allowance or deduction.
30A Capital gains tax not withheld in terms of Part IIIA to be paid before transfer
of specified asset
No registration of the acquisition of a specified asset in respect of which capital gains
tax is not withheld in terms of Part IIIA shall be executed, attested or registered by-
(a) the Registrar of Deeds in terms of the Deeds Registries Act [Chapter
20:05];
(b) the person responsible for registering the transfer of shares of any
company registered or incorporated in terms of the Companies Act [Chapter 24:03];
unless there is submitted to the Registrar of Deeds or the person concerned by either
of the parties or their agents concerned in the transaction a certificate issued by the
Zimbabwe Revenue Authority stating that any capital gains tax payable on the
acquisition of the specified asset has been paid.
[Section inserted by Act 15 of 2002 with effect from 1st January, 2003 and
renumbered by Act 10 of 2003.]
31 Returns by Registrar of Deeds, financial institutions and other persons
(1) At such intervals as the Commissioner may require, the Registrar of Deeds shall
notify the Commissioner in the form prescribed of-
(a) all transfers of immovable property registered in the Deeds Registry
during the period covered by the notification; and
(b) the name and address of the transferor and the transferee in each
transfer referred to in paragraph (a); and
(c) the price, if any, at which each property referred to in paragraph (a)
was transferred.
(2) Subject to subsection (3), whenever any marketable security is sold by or through
the agency of-
(a) a bank or other institution registered or required to be registered under
the Banking Act [Chapter 24:01]; or
(b) a building society registered or required to be registered under the
Building Societies Act [Chapter 23:02]; or
(c) a stockbroker registered or required to be registered under the
Zimbabwe Stock Exchange Act [Chapter 24:18];
the institution, society or stockbroker, as the case may be, shall forthwith notify the
Commissioner in the form prescribed of-
(i) the name and address of the seller and the purchaser; and
(ii) the nature of the marketable security; and
(iii) the price, if any, at which the marketable security was transferred:
Provided that, with the Commissioner's consent, such notification may be made at
such intervals as the Commissioner may require.
(3) Subsection (2) shall be suspended until such date as the Minister may specify by
notice in the Gazette:
Provided that the date so specified shall not be earlier than one month after the date of
publication of the notice.
[Section 31 inserted by the Finance Act 22 of 1999 with effect from 1 January 1999.]
32 Capital gains tax not withheld in terms of Part IIIA to be paid before transfer
of specified asset
No registration of the acquisition of a specified asset in respect of which capital gains
tax is not withheld in terms of Part IIIA shall be executed, attested or registered by-
(a) the Registrar of Deeds in terms of the Deeds Registries Act [Chapter
20:05];
(b) the person responsible for registering the transfer of shares of any
company registered or incorporated in terms of the Companies Act [Chapter 24:03];
unless there is submitted to the Registrar of Deeds or the person concerned by either
of the parties or their agents concerned in the transaction a certificate issued by the
Zimbabwe Revenue Authority stating that any capital gains tax payable on the
acquisition of the specified asset has been paid.
[inserted by Act 15 of 2002 with effect from 1st January, 2003. Section wrongly
numbered - Editor.]
