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where a specified asset is sold in foreign currency, Capital Gains Tax payable, if any, should be in foreign currency.
In addition to the normal sales, there                  are deemed sales also considered for capital gains tax. These transactions may not                     necessarily entail the direct exchanges of cash, dollar notes or cheques but have an ascertainable monetary value. Such transactions are also liable to capital gains in terms of the Capital Gains Tax Act [Chapter 23:01].

Who is liable to Pay Capital Gains Tax?
Any person who sells a specified asset except for persons specifically exempted in terms of the Capital Gains Tax Act.

What is the rate of tax applicable?
The following rates are applicable:
Capital Gains:
l The Capital Gains Tax is calculated at a rate of 20 percent of the capital gain determined in accordance with the CGT Act, with effect from February 1 2009.
l Where a specified asset that was acquired prior to February 1 2009 is disposed of after that date, CGT should be calculated at a rate of 5 percent of the selling price. (Gross Capital Amount). 
Capital Gains Withholding Tax:
l Immovable property acquired before February 1 2009 and sold on or after                     that date — 5 percent of the gross capital amount (which is equal to the capital gains tax).
l Marketable security — 1 percent of the price to which the security is sold.
l Unlisted security — 5 percent of the price to which the security is sold.

Remittance of Capital Gains
Withholding Tax
It should be noted that any depositary (conveyancer, legal practitioner, estate agent or any prescribed person in terms of the Capital Gains Tax Act) who withholds the tax should remit it to the Commissioner- General of Zimra not later than three days from the date of payment of such amount.

l This article was submitted by the Zimbabwe Revenue Authority. Please contact us as follows:
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