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
- Exemption from Income Tax – From January 2021 the Elderly person’s credit shall be ZWL$ 120 000 (ZWL$10 000 per month) or a total of US$3000. (US$250.00 per month for remuneration in forex) per annum on rental income.
- Exemption from Income Tax of the first ZWL240 000 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$240 000 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.
- Entitled to an elderly persons’ credit of ZWL$72 000.00 per annum or US$900.00 for income in forex.
- Pension received from a pension fund or the Consolidated Revenue Fund is exempt from Income Tax.
- Where an employer disposes of a motor vehicle to an employee whether on termination of employment or otherwise, the benefit is exempt from tax.
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