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, is now available for Sage VIP Premier on the Sage Portal.

Take note:

• This is an additional download for Release 6.2a, and is not included in the installation file available on the Sage Portal
• For more information: R62a_Patch4_Additional_Notes.pdf

How do I download and install the patch files?

Take note: It is always recommended to perform a full system backup before extracting any new program files to your application.

• Access the Sage Portal
• Click on Product Updates
• Select your payroll product Sage VIP Premier
• Select Release 6.2a
• Scroll down and locate Patch 4 in the Patch Files / Tax Files section
• The patch file is compatible with both 32-bit and 64-bit systems

Review the following details and steps before you extract the patch 

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

To ensure proper implementation, follow these steps:

 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. Log into the Sage Portal to download the new tax tables (Product Updates > Sage VIP Premier > Sage VIP Premier – Release 6.2a > Patch Files / Tax Files)

2. Extract the downloaded .zip file which includes the new tax tables to your payroll folder, overwriting the existing files

3. Convert all financial values from ZWL to 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)

4. Ensure that all Payslip values are correct

5. Do the input for April 2024

6. 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 ‘Additional Information’ document included in the downloaded .zip file.