Investment incentives in Zimbabwe

There are many financial and tax incentives for foreign investors. Some of the incentives and specifications for investment are listed below:

  • Several tax breaks are available for new investment by foreign and domestic companies.
  • Capital expenditures on new factories, machinery, and improvements are fully tax deductible and the government waives import tax and surtax on capital equipment.
  • An investment allowance of 15 percent in the year of purchase of industrial and commercial buildings, staff housing and articles, implements, and machinery;
  • A twenty-five percent special initial allowance on the cost of industrial buildings and commercial buildings and machinery in growth point areas is granted as a rebate for the first four years.
  • Special mining lease provisions entitling the holder to specific incentive packages to be negotiated with the Ministry of Mines
  • A refund of value added tax (at 15 percent) for capital goods purchased in Zimbabwe and intended for use in priority projects or investment in growth points.
  • There are no general performance requirements outside of Export Processing Zones.
  • Government policy, however, encourages investment in enterprises that contribute to rural development, job creation, exports, use of local materials, and transfer of appropriate technologies.
  • There are no discriminatory import or export policies affecting foreign firms, although the government’s approval criteria are heavily skewed toward export-oriented projects.
  • Export Processing Zone designated companies must export at least 80 percent of output.

About The Author

John Muhaise-Bikalemesa (JMB), is the founder of Muhaise.com blog and bigdrumassociates.com company. Learn more about him here and connect with him on his social medias below

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