A tax credit is a type of tax incentive that reduces the tax liability of qualifying taxpayers as it is deducted from the income tax with which such a person is chargeable. Tax credits are provided for in the Finance Act   [Chapter 23:04] under Sections 5, 10, 11, 12 and 13. The common types of credits currently available for individual taxpayers are the elderly credit, blind person credit, medical expenses credit and the mentally or physically disabled person credit.

Finance Act (No.3), 2019 introduced an additional tax credit under Section 13A also known as the Youth Employment Tax Incentive (YETI). This incentive is aimed at stimulating employment of young people in Zimbabwe and it shall be enjoyed by employers.

Definition of terms

For the purposes of this credit:

“Employee” excludes a trainee, intern, apprentice and a managerial employee. Managerial employee includes a supervisor.

“Qualifying taxpayer” means a company or trust or individual taxpayer engaged in trade or investment who qualifies for a credit in terms of Section 13A of the Finance Act [Chapter 23:04].


Who qualifies for the credit?

A qualifying taxpayer who employs an additional employee aged thirty (30) years or less during the year of assessment.

How much is the credit?

The credit to be deducted from the income tax payable by a qualifying taxpayer shall be $500 per month for each additional employee. However, the aggregate amount to be granted as a credit for all additional employees shall not exceed $60,000.00 per year.

What are the conditions to be fulfilled?

  • The qualifying taxpayer claiming the credit should be a registered taxpayer and compliant for the preceding year of assessment. All returns and taxes due should have been paid and if on payment plan client must be adhering to the same.
  • The tax credit will only be claimed after the additional employee has served a period of 12 consecutive months and should be earning at least $2,000.00 per month.
  • The tax credit will not apply to companies or trusts or individual taxpayers whose annual turnover is equal to or exceeds an equivalent of US$1 million.


  • The Commissioner shall not refund any excess credit if the credit exceeds the tax payable during the year of assessment.
  • Where the taxpayer has an assessed loss during the year of assessment, the credit shall be added to the assessed loss and the amount is carried forward to the next year of assessment.

My Taxes, My Duties: Building my Zimbabwe!!



This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.