The Zimbabwean Minister of Finance and Economic Development has reviewed local currency employment tax bands and tax rates with effect from 01 August 2023.

See our original post: Zimbabwe: Tax changes effective August 2023 (local currency)

Please take note of the Important information below

• New tax tables for Zimbabwe will be deployed on 17 August 2023  on the Sage Portal. (The USD tax tables remain unchanged.)
• Your payroll must be on Release 6.0b, before you install the Zimbabwe tax files.
• All changes will be applied in the current pay period and will affect Net Salaries.
• The tax tables are affective from 1 August 2023 and not for the full tax year.
• Follow the steps below before the deployment to ensure that employees are taxed according to the correct tables.

Please follow the steps below in your Current Zimbabwe Company:

1. Make a backup of the company

2. Ensure your Company is in August 2023

3. Copy the Company structure to a new number and access the new company.  (On the Company Listing Page, select Add Company > 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.

• Transfer without YTD figures.
• Transfer without Clear Payslip.
• Termination Date = 31/07/2023
• Tax Year Start Date = 01/08/2023.
• Retain existing Engagement Date and Service Periods.

(From the Main Menu > Employee >Transfer Employee)

• Transfer From:   (this will be the original Zimbabwe Company)
• Transfer To:   (this will be the new Zimbabwe Company)

6. Clear the payslips for August in the current company (this will be in the original company).

• Ensure that you clear Earnings, Deductions and Perks Tax Values
• There might be a Tax difference in August because the employees were terminated for a previous month.
• Decide how you want to handle the tax differences. (Refund to the employees; 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 in the new company as additional tax)

7. Print a report with Tax values per employee

8. Re-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.

Follow the steps below in your New Company

10. Ensure that all Payslip values are correct

11. Do the input for August

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

After deployment of new Tax Tables – Follow the steps below

13. You can now extract the new tax tables and overwrite the existing tax files in your payroll folder. 

14. Do a General Recalculation to ensure that the new tables are correctly applied.

15.  Your payroll should now be updated and ready to go!

Information regarding the changes will be included in the zipped file containing the Tax tables, which will be available on the Sage Portal on the morning of 17 August 2023.

Should you require any assistance with the process, please contact your Sage accredited Business Partner.