Corporate Tax Rate in Zimbabwe 2026
The standard corporate tax rate in Zimbabwe for 2026 is 24.72%. This comprises:
- Base corporate tax rate: 24%
- AIDS levy: 3% of the tax payable (not of income)
- Effective rate: 24% + (24% × 3%) = 24% + 0.72% = 24.72%
Example: If your company earns taxable income of $100,000, the tax is calculated as: $100,000 × 24% = $24,000 base tax, plus $24,000 × 3% = $720 AIDS levy. Total tax = $24,720 (effective rate 24.72%).
Who Pays Corporate Tax?
Corporate tax applies to:
- Private Limited Companies (Pvt Ltd) registered in Zimbabwe
- Public Companies listed or unlisted
- Foreign companies with a permanent establishment in Zimbabwe
- State enterprises and parastatals
Sole traders and partnerships are not subject to corporate tax — they pay personal income tax instead.
Special Corporate Tax Rates
| Sector / Activity | Rate | Notes |
|---|---|---|
| Standard companies | 24.72% | 24% + 3% AIDS levy |
| Mining companies (non-special) | 24.72% | Same as standard |
| Special mining (gold, platinum, etc.) | 15% + AIDS levy | Reduced rate for special mining operations |
| Industrial Park companies | Varies | Tax incentives may apply for approved zones |
| Registered pension funds | 0% | Exempt from corporate tax |
| Approved charitable organisations | 0% | Must be registered with ZIMRA as exempt |
Taxable Income — What Is Included
Corporate tax is calculated on taxable income, which includes:
- Business profits from trading activities
- Interest and investment income
- Rental income from property
- Capital gains on disposal of assets
- Foreign-sourced income (for resident companies)
- Any other income arising in Zimbabwe
Allowable Deductions
You can reduce your taxable income by claiming these deductions:
- Salaries and wages — Including employee benefits and pension contributions
- Rent and utilities — For business premises
- Depreciation — Capital allowances on plant, machinery, and equipment
- Interest on loans — Business loans only (subject to thin capitalisation rules)
- Bad debts — Debts written off as irrecoverable
- Advertising and marketing — Ordinary business promotion costs
- Professional fees — Accounting, legal, and consulting fees
- Repairs and maintenance — Keeping assets in working condition
- Insurance premiums — Business insurance
- Donations — To approved charities (up to limits)
Non-Deductible: Entertainment expenses, personal expenses of directors, fines and penalties, provisions for future losses, and capital expenditure (claim depreciation instead) are NOT deductible.
Quarterly Provisional Payments (QPDs)
Companies must make quarterly provisional tax payments during the year based on estimated taxable income:
| Quarter | Due Date | Percentage of Annual Estimate |
|---|---|---|
| Q1 (Jan-Mar) | 25 March | 10% |
| Q2 (Apr-Jun) | 25 June | 25% |
| Q3 (Jul-Sep) | 25 September | 30% |
| Q4 (Oct-Dec) | 20 December | 35% |
Under-estimation penalty: If your quarterly payments are less than 90% of the actual tax due, ZIMRA may charge a penalty. It is better to overestimate and receive a refund than to underestimate.
Filing the Corporate Tax Return
The annual corporate tax return must be filed within 6 months of the end of your financial year. For companies with a December year-end, the deadline is 30 June of the following year.
The return is filed on the TARMS portal at efiling.zimra.co.zw and must include:
- Audited financial statements
- Tax computation showing taxable income
- Schedule of capital allowances claimed
- Details of related-party transactions
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Start Registration WhatsApp UsFrequently Asked Questions
What is the corporate tax rate in Zimbabwe 2026?
The corporate tax rate in Zimbabwe for 2026 is 24.72%, which comprises the base rate of 24% plus the 3% AIDS levy calculated on the tax payable. This applies to all registered companies operating in Zimbabwe.
What expenses can be deducted from corporate tax in Zimbabwe?
Allowable deductions include employee salaries and wages, rent and utilities, depreciation of assets, interest on business loans, bad debts, advertising and marketing costs, professional fees, and any other expenses wholly and exclusively incurred in the production of income.
When are corporate tax returns due in Zimbabwe?
Corporate tax returns are due within 6 months of the end of the company's financial year. Quarterly provisional tax payments (QPDs) are due on 25 March, 25 June, 25 September, and 20 December.
Do small companies pay the same corporate tax rate?
Yes, all registered companies pay the standard 24.72% corporate tax rate regardless of size. However, small businesses in the informal sector may qualify for presumptive tax instead, which is typically 10% of turnover.