Withholding tax on capital gains increased to 2%


The Chronicle

Oliver Kazunga, Senior Business Journalist
The Zimbabwe Stock Exchange (ZSE) announced a 2% increase in the withholding tax on capital gains starting this month, in line with the 2022 fiscal policy framework.

The government, through the Ministry of Finance and Economic Development, had defined the framework for the new tax regime in the draft finance law.

“Under the terms of the draft finance law, 16 HB 2021, with effect from January 1, 2022, article 39 (Rate of withholding tax on capital gains tax) of the finance law [Chapter 23:4] was amended by repealing paragraph (c) and substituting— “(c) in the case of a sale of a marketable security that is a listed security, one point five percent of the price at which the security was sold. been sold if that security has been held for at least six months on the date of its sale, or two percent of the price at which the security was sold if that security has been held for less than six months on the date of its sale ” .

It is in this context that the ZSE announced the increase in the withholding tax on capital gains.

“As of January 1, 2022, the withholding tax on capital gains by default on ZSE-listed securities will be set at 2% and investors are advised to seek advice from their securities broker if the securities that they sell have been held for at least six months, ”he said. .

Before selling their securities, the exchange said clients can email ZSE Direct, a digital platform, which allows individuals nationwide to participate in the exchange.

ZSE Direct was launched in September 2020.
Following the launch of the platform, ZSE was working with different institutions to increase access to the platform by retail investors.

Since the launch of ZSE Direct, the platform aims to register at least 7,000 active participants who were on the central securities depository as of June 2020.

When the country adopted the local currency, the ZSE lost a large number of foreign investors in the market and a buffer of local investors is still needed to support domestic capital markets. – Kazunga Oliver


Source link

Previous Next PR strengthens the credibility and awareness of the Mother Superior, a partner of conscious capitalism
Next Was 2021 the year psychedelics defeated capitalism?