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Zimbabwe Stock Exchange Introduces New Withholding Tax on Capital Gains

Zimbabwe Stock Exchange Introduces New Withholding Tax on Capital Gains
Mr. Justin Bgoni -CEO Zimbabwe Stock Exchange during a prospective issuers training program | Photo - Zimbabwe Stock Exchange (x)

Harare, Zimbabwe – WITH effect from June 28, the Zimbabwe Stock Exchange Limited (ZSE) has announced a 2 percent capital gains withholding tax.

The modification may have an effect on the general performance of the Zimbabwean stock market and is anticipated to have major ramifications for investors and market players.

The proportion of tax withheld by the payer, such as a brokerage, from the proceeds of the sale of investments, such as stocks or real estate, before the remaining amount is distributed to the investor, is known as the capital gains withholding tax rate.

The CEO of Zimbabwe Stock Exchange Limited (ZSE), Mr. Justin Bgoni, has declared that listed marketable securities will be exempt from capital gains tax for a predetermined amount of time.

Also read: “Fraudsters Mike Chimombe and Moses Mpofu Tried Their Best to Squash the Investigation”

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Mr. Bgoni declared, “With immediate effect on all trades, the rate of capital gains withholding tax on listed marketable securities shall be set at 2 percent.”

Stakeholders were reminded to pay attention to the new Statutory Instrument 110 of 2024, which modifies the Finance Act, by Mr. Bgoni.

Using this tool, the Minister of Finance, Economic Development, and Investment Promotion (MoFEDIP) has significantly reduced transaction fees for securities listed on the Zimbabwe Stock Exchange (ZSE).

“These changes will take effect right away and be in place for six months, during which the government will evaluate them.

Consequently, from June 28 to December 28, of this year, trades completed on the ZSE will be subject to these modifications.

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