Youth Employment Tax Incentive

Section 13A of the Finance Act (Chapter 23:04) provides for a Youth Employment Incentive (YEIT) to qualifying taxpayer who employs youths in their companies who are below the age of 30 years with effect from 01 January 2020.

The credit for each additional employee hired is $1,500.00 per month up to a maximum amount of $180,000.00 per annum.

The credit is applicable upon satisfying the conditions below:

a)   The qualifying taxpayer must be a registered taxpayer and have a tax clearance certificate for the preceding year of assessment; and

b)   The credit can only be claimed after the additional employee has served for twelve consecutive months of employment and should be earning at least two thousand dollars’ Zimbabwean dollars per month; and

c)    The credit may not be claimed by companies engaged in trade or investment having an annual turnover exceeding one million United Sates dollars; and

d)   If the credit exceeds the tax payable in a year of assessment, no refund shall be claimed.

e)   The credit shall be added to the assessed loss and the amount is carried forward to the next year of assessment.

For the purposes of this credit employee excludes a trainee, intern, apprentice and a managerial employee. Managerial employee includes supervisors as well. The credit for employee employed on any other date after 1 January shall be claimable in the following year of assessment.

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