INTERMEDIATED money transfer tax is a tax collected in terms of Section 36G as read with the Thirtieth Schedule of the Income Tax Act [Chapter 23:06].
This tax has been in place since 2003 and an amendment was made by Statutory Instrument 205 of 2018 on October 12, 2018 and effective from October 13, 2018.
The major change is on the rate of tax and exemptions of certain transactions from the tax.
Who collects intermediated money transfer tax?
Financial institutions collect Inter-mediated Money Transfer Tax. This includes banks, building societies, and mobile banking service providers.
When is intermediated money transfer tax collected?
Whenever a financial institution mediates the transfer of money not by cheque - between two persons; or from one person to two or more persons; or from two or more persons to one person;
The financial institution concerned shall pay to the Zimra Commissioner General an intermediated money transfer tax on each such transaction.
Transactions not subject to intermediated money transfer tax:
The following transactions are not subject to Intermediated Money Transfer Tax:
• The transfer of money for the purchase or sale of marketable securities
• The transfer of money for the purchase or redemption of money market instruments
• The transfer of money on payment of remuneration • The transfer of money to or from Zimbabwe Revenue Authority for the payment or refund of any tax, duty or other charges
• The intra-corporate transfer of money, that is to say, transfer of money between the treasury account and any trading account held in the name of the same company
• The transfer of money from (but not into) specified trust accounts
• The transfer of money into and from nostro foreign currency accounts
• The transfer of money by Government from Consolidated Revenue Fund or from funds established in terms of Section 18 of the Public Finance Management Act
• The transfer of money to any pension fund or the beneficiaries of such pension fund
• The transfer of money for the procurement, production or sale (wholesale or retail) of a petroleum product by a petroleum company licensed in terms of Part VI of the Petroleum Act [Chapter 13:22]
• The transfer of money involving a transaction other than one mentioned in the foregoing paragraphs, if the value of the transaction is ten United States Dollars and below. New rates of intermediated money transfer tax
• With effect from the day after the promulgation of the regulations in SI 205 of 2018, that is with effect from October13, 2018, the intermediated money transfer tax chargeable is:
• Not chargeable if the value of the transaction is ten United States Dollars and below for each transaction; • Calculated at US$0,02 (two United States Cents) on every dollar transacted for each taxable transaction.
• For a single transaction equal to or exceeding $500,000 a flat intermediated money transfer tax of $10,000 shall be chargeable.
For more information, please approach your nearest Zimra Office.
Disclaimer 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.
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