The current tax legislation provides for a number of tax concessions, which are meant to provide tax relief to elderly persons. These tax concessions, which are mostly in the form of tax exemptions and credits, are contained in the Income Tax Act [Chapter 23:06], the Finance Act [Chapter 23:04] and the Capital Gains Tax Act [Chapter 23:01].

For the purposes of these concessions, an elderly person is a person aged 55years or more

Income Tax

• Entitled to an elderly persons’ credit of ZWL$450,000.00 per annum or US$900.00 for income in forex.
• Exemption from Income Tax – for Elderly person’s rental income shall be ZWL$ 750,000 or a total of US$1500.
• Exemption from Income Tax of the first ZWL 1,500,000.00 per annum on income earned from bankers acceptances or a total of US$3,000.00 for income earned in forex.
• Exemption from Income Tax of the first ZWL$ 1,500,000.00 per annum on income earned from interest on deposits to financial institutions or a total of US$3,000.00 for income earned in forex.
• Pension received from a pension fund or the Consolidated Revenue Fund is exempt from Income Tax given that the person attains 55 years before the commencement of the year of assessment.
• Where an employer disposes of a motor vehicle to an employee whether on termination of employment or otherwise, the benefit is exempt from tax. No advantage or benefit shall accrue to an employee who is 55years or above on the sale or disposal of a motor vehicle to him by his employer, whether during or on termination of his employment.

Capital Gains Tax

• The full amount arising from the disposal of a Principal Private Residence (PPR) by persons who are 55 years or above on the date of the sale is exempt from Capital Gains Tax