VAT is up from 14.5% to 15% and new PAYE tax brackets for RTGS and USD for 2023

Edwin Chabuka Avatar
ZIMRA Offices, vehicle registration, number plates, requirements, imported cars

Yes, there has been a slight price bump on a lot of products and services overnight. Its retailers and service providers recalculating their pricing to accommodate the 0.5% increase in VAT from 14.5% to 15% under the Finance Act (No.2), 2022 effective 1 Jan 2023. This tax was originally 15% and was reduced to 14.5% on 1 January 2020 so this is just it going back to its original figure.

PUBLIC NOTICE: CHANGE OF VALUE ADDED TAX RATE FROM 14.5% TO 15%

Following the promulgation of Finance Act Number 2 of 2022, the Finance Minister directed that Value Added Tax rate be adjusted from 14.5% to 15%, with effect from 1 January 2023.

The Zimbabwe Revenue Authority (ZIMRA) hereby notifies all its valued clients that the Value Added Tax (VAT) rate is now 15% starting 1 January 2023 going forward.

ZIMRA wishes to advise all Value Added Tax Registered Operators that:

a) With effect from 1 January 2023 they are now required to charge Value Added Tax at the rate of 15%. b) Fiscal devices should record VAT at 15%. therefore VAT Registered Operators are required to approach their respective Approved Suppliers for effecting this change and ensuring that their fiscal devices are correctly configured to record the new Value Added Tax (VAT) rate of 15%.

ZIMRA press statement

2023 RTGS PAYE tax tables

Daily Table
RTGS Salary RangeTax deducted %Deduct (RTGS)
– to 3,013.700
3,013.71 to 10,520.5520602.74
10,520.56 to 18,016.44251,128.77
18,016.45 to 25,512.33302,029.59
25,512.34 to 32,876.71353,305.21
32,876.71 and above404,949.04
Weekly Table
– to 21,153.850
21,153.86 to 73,846.15204,230.77
73,846.16 to 126,461.54257,923.08
126,461.55 to 179,076.923014,246.15
179,076.93 to 230,769.233523,200.00
230,769.24 and above4034,738.46
Fortnightly Table
– to 42,307.690
42,307.70 to 147,692.31208,461.54
147,692.32 to 252,923.082515,846.15
252,923.09 to 358,153.853028,492.31
358,153.86 to 461,538.463546,400.00
461.538.47 and above4069,476.92
Monthly Table
– to 91,666.670
91,666.68 to 320,000.002018,333.33
320,000.01 to 548,000.002534,333.33
548,000.01 to 776,000.003061,733.33
776,000.01 to 1,000,000.0035100,533.33
1,000,000.01 and above40150,533.33
Annual Table
– to 1,100,000.000
1,100,001.00 to 3,840,000.0020220,000.00
3,840,001.00 to 6,576,000.0025412,000.00
6,576.001.00 to 9,312,000.0030740,800.00
9,312,001.00 to 12,000,000.00351,206,400.00
12,000,001.00 and above401,806,400.00

2023 Foreign Currency PAYE tax tables

Daily Table
US$ Salary RangeTax deducted %Deducte (US$)
– to 3.290
3.30 to 9.86200.66
9.87 to 32.88251.15
32.89 to 65.75302.79
65.76 to 98.63356.08
98.64 and above4011.01
Weekly Table
– to 23.080
23.09 to 69.23204.62
69.24 to 230.77258.08
230.78 to 461.543019.62
461.55 to 692.313542.69
692.32 and above4077.31
Fortnightly Table
– to 46.150
46.16 to 138.46209.23
138.47 to 461.542516.15
461.55 to 923.083039.23
923.09 to 1,384.623585.38
1,384.63 and above40154.62
Monthly Table
– to 100.000
100.01 to 300.002020.00
300.01 to 1,000.002535.00
1,000.01 to 2,000.003085.00
2,000.01 to 3,000.0035185.00
3000.01 and above40335.00
Annual Table
– to 1,2000
1,201 to 360020240
3,601 to 12,00025420
12,001 to 24,000301,020
24,001 to 36,000352,220
36,001 and above404,020

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6 comments

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  1. Oblivious 😐

    Holy squeezed dry blood stones Batman! Vat was actually down all this time?! Lol, I honestly didn’t even feel it! After all, it’s hard to tell the difference between being bitten by a hundred ants and ninety nine ants!

    1. Thanos

      True you just feel the same pain.

  2. 🙂

    Guys. How is PAYE in other countries? Is it higher or lower than in Zimbabwe. What about in SA?

    1. The Empress

      This is one of those times that a direct comparison is not really possible or relavant. But go ahead and Google it if you want.

  3. Anonymous

    40% pate.. Outrageous and scandalous

  4. Inini

    These are issues our people should put on the ballot…. especially how public finance is being managed ,in comparison we are already heavily taxed but what are we getting in terms of public goods and services.