Zimbabwe launched a new gold-backed currency called The Zimbabwe Gold (ZiG) to replace the inflation-hit Zimbabwean Dollar (ZWL) on 5 April 2024. 

•  See related post: Zimbabwe Currency Change - Zimbabwean Dollar(ZWL) replaced with The Zimbabwe Gold (ZiG)

The new ZiG tax tables, which was only recently published, will be deployed for Sage Business Cloud Payroll Professional on 26 April 2024 at 17:30.

1. All changes will be applied in the current pay period and will affect Net Salaries
2. The tax tables are affective from 1 April 2024 and not for the full tax year
3. The new tax tables is in ZiG, the new gold-backed currency launched on 5 April 2024.

Please follow the steps below before the deployment to ensure that employees are taxed according to the correct tables:

Steps to follow in Current Zimbabwe Company:

1. Ensure the company processing date is April 2024

2. Make a backup of the company

3. Copy the Company structure to a new number and access the new company, with the same processing dates.  

(On the Company Listing Page, select Manage Companies > Copy Company Structure)

4. Access the newly created company to ensure that it created correctly.

5. Transfer employees from current company to the new company, with the following selections

(From the Main Menu > Employee >Transfer Employee)

• • Transfer without YTD figures 
  • Transfer without Clear Payslip
  • Termination Date = 31/03/2024
  • Tax Year Start Date = 01/04/2024
  • Retain existing Engagement Date and Service Periods 
  • Transfer From:   (this will be the original Zimbabwe Company)
  • Transfer To:   (this will be the new Zimbabwe Company)

6. Clear the payslips for April in the current company (this will be in the original company).There might be a Tax difference in April because the employees were terminated for a previous month.

• • There might be a Tax difference in April because the employees were terminated for a previous month
  • Decide how you want to handle the tax differences:
    • Refund to the employees;
    • or load it as additional tax to get a zero net salary effect;
    • or load it as additional tax to get a zero Net Salary effect and then load the same values (converted to the new Zig currency) in the new company as additional tax)

7. Print a report with Tax values per employee

8. Print month end reports and create payment files if needed

9. Make a backup and roll the company with terminated employees to a new pay period to avoid any further tax calculations

Steps to follow the steps in your New Zimbabwe Company:

1. Convert all financial values from Zimbabwe Dollar (ZWL) to Zimbabwe Gold (ZiG) - According to the Press Statement released on 10 April 2024 by the Revenue Bank of Zimbabwe, ZWL is converted to ZiG using conversion factor of 2498.7242)

2. Ensure that all Payslip values are correct

3. Do the input for April

4. If you decided to carry tax values over to the new company – capture the additional tax values.

Information regarding the changes will be available in the 'What’s New' document on the Active Payroll Subscription page, after the deployment of the tax file.

If you have any questions, you are welcome to reach out to your Business Partner consultant, or Sage Customer Support

Take note: Notification of the information above was sent to all customers licensed for Zimbabwe as tax country.