LegislationZimbabwe
Zimbabwe IFSC Expatriate Tax 15% Rate | 2026 Update
Thando Kubeka|
Legislative summary of changes
Preferential income tax rate for IFSC expatriate employees
- A flat income tax rate of 15%, effective 1 January 2026, applies to qualifying expatriate employees working in declared International Financial Services Centres.
- This rate replaces the standard progressive PAYE tax bands for the affected employment income.
- The preferential rate applies to all taxable employment income derived from qualifying IFSC employment.
- Eligibility conditions for the preferential rate:
- The employee must hold a valid temporary employment permit.
- The employee must be employed by an entity operating within a declared International Financial Services Centre, such as the Victoria Falls IFSC.
- Only income attributable to qualifying IFSC employment is subject to the preferential rate.
PAYE reporting and record-keeping requirements
- Employers must submit PAYE returns in the format prescribed by the Commissioner for the relevant tax year.
- Required information includes employee name and address, total remuneration paid or payable during the year, total employees’ tax withheld, and any additional information requested by the Commissioner.
- PAYE returns must be submitted monthly, or over a longer period if approved by the Commissioner.
- Where an employer ceases operations or stops employing staff, a final PAYE return covering the period from 1 January 2026 to the cessation date must be filed within 14 days of cessation, unless an extension is granted.
Employers are required to provide each employee with a copy of their annual tax certificate.
Additional information and resources
- Click here to access the official publication.
- Please refer to release notes PSPDEV-25496 and PSPDEV-254962 titled Calculation changes / Non Resident tax status enhancement for more information.
Should you have any questions regarding the Zimbabwe New tax rate for expatriate employees, please feel free to visit our Support page for more ways to get in touch, or email us at support@payspace.com
The Deel Local Payroll Team